TIG Post

Tag: tax evasion

  • Focus on tax evasion and stop protecting corrupt State officials – Dr. Amoako Baah to AG

    Focus on tax evasion and stop protecting corrupt State officials – Dr. Amoako Baah to AG

    Political analyst Dr. Richard Amoako Baah has expressed deep concern over the direction taken by the Attorney General regarding public interest matters, particularly those related to corruption.

    In response to a communication between Attorney General Godfred Dame and the CEO of the Economic and Organised Crime Office (EOCO) concerning the Cecilia Dapaah case, a former Minister of Sanitation and Water Resources, Dr. Amoako Baah expressed dismay at what he perceives as the AG aligning with individuals engaged in embezzlement.

    The correspondence, stated a lack of evidence implicating Cecilia Dapaah and her husband, Daniel Osei Kufuor, in corruption or procurement breaches.

    However, Dr. Amoako Baah dismissed these assertions as unfounded and an attempt to conceal wrongdoing.

    In a statement, Dr. Amoako Baah denounced the AG’s stance as baseless and corrupt, asserting that unexplained wealth should be presumed illicit until proven otherwise. He questioned the AG’s motives and accused him of siding with those implicated in corruption.

    “The AG’s assertions are baseless, nonsensical, and a corrupt attempt to cover-up, which every juror or logical person would treat with contempt. Would the AG venture to tell us where her great wealth came from, as others have shamefully suggested it came from funeral donations or family inheritance, even though the family is as poor as others? If he can’t, then it can safely be assumed to be from her official duties. If that is the case, it is illegally acquired wealth, called bribes, kickbacks, side dealing, or other ways they are referred to. They are all the children of corruption!

    “Unsubstantiated source of cash must be automatically assumed guilty until legal or reasonable substantiation makes it not guilty,” he said in a statement.

    Moreover, Dr. Amoako Baah called into question President Akufo-Addo’s response to the situation, warning that failure to address the case would cast doubt on the President’s integrity as a lawyer.

    “I don’t see where the AG’s illegality stems from. The AG, who should at least be looking at issues like tax evasion, has joined in the protection of the looters of the state. This is a bogus attempt for further corruption. EOCO must disregard this advice since the Special Prosecutor is legally right.

    “If the President sits idly by and allows this to go on, where are his credentials as a good lawyer? He has become part of the endemic corruption that is killing the country. For once, do what we worked so hard to elect you president for: PROTECT THE PUBLIC PURSE,” he added.

    The investigation into Cecilia Dapaah stemmed from allegations of substantial sums of money being stolen from her residence by domestic workers in 2023. Despite the involvement of the Office of the Special Prosecutor (OSP), concerns persist regarding the handling of the case.

  • I have made the decision to finally resolve this matter – Shakira on settling $7.5m tax fine

    I have made the decision to finally resolve this matter – Shakira on settling $7.5m tax fine

    Colombian pop sensation Shakira has reached an agreement with Spanish prosecutors to resolve a tax fraud case just as her trial was set to commence.

    The singer has paid a €7.5 million (£6.5 million) fine, averting the possibility of an eight-year jail term and a €23.8 million (£20.8 million) fine, as initially sought by prosecutors in the event of a guilty verdict.

    The allegations involved tax fraud amounting to €14.5 million (£12.7 million) in a Barcelona court.

    Shakira, who has repeatedly denied any wrongdoing, said she settled “with the best interest of my kids at heart”.

    In a lengthy statement, she said her children “do not want to see their mom sacrifice her personal well-being in this fight”.

    Having declined an earlier settlement proposed by prosecutors, the artist chose to proceed with a trial. The focus of the case revolved around Shakira’s residence during the years 2012–2014.

    “Throughout my career, I have always strived to do what’s right and set a positive example for others,” she said.

    “Unfortunately, and despite these efforts, tax authorities in Spain pursued a case against me as they have against many professional athletes and other high-profile individuals, draining those people’s energy, time, and tranquillity for years at a time.

    “While I was determined to defend my innocence in a trial that my lawyers were confident would have ruled in my favour, I have made the decision to finally resolve this matter with the best interest of my kids at heart who do not want to see their mom sacrifice her personal well-being in this fight.”

    She added she needed to “move past the stress and emotional toll of the last several years and focus on the things I love – my kids and all the opportunities to come in my career”.

    Dispute over residency

    The focal point of the dispute revolves around Shakira’s residency status from 2012 to 2014, during which prosecutors asserted that she resided in Spain while officially declaring another location as her residence.

    In accordance with Spanish law, individuals spending more than six months in the country are deemed residents for tax purposes. However, Shakira contends that Spain was not her primary residence during that period.

    In July, prosecutors presented documentation claiming she purchased a house in Barcelona in 2012, which served as a family home for her and her then-partner, Barcelona footballer Gerard Piqué.

    According to her legal representatives, a significant portion of her income until 2014 was derived from international tours, and she spent extended periods outside of Spain during this time.

    “The Spanish tax authorities saw that I was dating a Spanish citizen and started to salivate. It’s clear they wanted to go after that money no matter what”, she told Elle magazine.


    Shakira officially designated Spain as her tax residence in 2015, affirming that she has fulfilled her tax obligations by paying €17.2 million (£15 million) and has no outstanding debts.

    In an unrelated case in 2019, Mr. Piqué received a fine of €2.1 million (£1.8 million) from the Spanish national court for tax evasion spanning the years 2008 to 2010.

    The couple, who announced their separation in early June after 11 years, shares two sons aged seven and nine.

  • Tax evasion: Govt will review structure, nature of taxes – Finance Minister

    Tax evasion: Govt will review structure, nature of taxes – Finance Minister

    Finance Minister, Ken Ofori-Atta has revealed that the government is putting measures in place to check the “structure and nature of the taxes” in the country.

    This, he said, is to address the challenges faced by the government to rake in more revenue to save the grappling economy, partly due to tax evasion, 

    He made the disclosure during a meeting with the business community on July 24, 2023, in Accra to solicit their inputs to revise this year’s budget. 

    Mr. Ofori Atta raised concerns about tax evasion, charging them to be diligent in their tax payments as the country strives to revive its grappling economy.

    Tax evasion is the act of intentionally and illegally avoiding paying taxes or underreporting income to reduce tax liability.

    He said the government is putting measures in place to check the “structure and nature of the taxes”. 

    “What do we do when all of these religious people sit in the front seat of the church and still no one wants to pay taxes? To a certain degree, yes,the structure and nature of the taxes must be relooked at,” he fumed.

    The minister acknowledged that revisiting the structure and nature of taxes was essential to ensuring greater public compliance.

    During the meeting, the Finance Minister acknowledged the existence of inefficiencies and concerns in the way the country’s budgetary deficit has been managed.

    In 2022, total revenue and grants amounted to GH¢65,399 million (11.0 percent of GDP), compared with the target of GH¢67,307 (11.4 percent of GDP) and the GH¢49,108 million (10.7 percent of GDP) recorded in the corresponding period in 2021, according to the Finance Ministry.

    Compared to the target for the period, the outturn for total revenue and grants represented a short fall by GH¢1,909 million or 2.8 percent and a year on-year growth of 33.2 percent. The shortfall in revenue stemmed from the less robust performance recorded in all the revenue types. 

    In 2023, the government intends to collect total revenue and grants of GH¢143,956 million (18.0% of GDP) and is supported by permanent revenue measures – largely tax revenue measures – amounting to 1.35 percent of GDP.

  • GHS500m tax fraud uncovered by GRA, NIB

    GHS500m tax fraud uncovered by GRA, NIB

    Executives of Wan Heng Ghana Limited, a Chinese-owned cement manufacturing company, have been arrested by a joint operation involving the National Intelligence Bureau (NIB) and the Ghana Revenue Authority (GRA).

    The arrests were made due to alleged tax violations totaling ¢500 million.

    The investigation was initiated following a tip-off from the GRA’s Tema Medium Taxpayer Office, which detected inconsistencies in monthly filings related to the National Health Insurance Levy (NHIL) and Ghana Education Trust (GET) Fund.

    During a joint operation, police and military personnel attempted to gather further evidence from Wan Heng Ghana Ltd., known for producing Sol Cement. However, the company’s management refused to cooperate with the authorities investigating the alleged tax evasion. As a result, the military personnel detained the executives, and the premises were locked pending the outcome of the ongoing investigation.

    According to documents obtained from the GRA, Wan Heng Ghana Ltd. evaded approximately ¢500 million in Value Added Tax (VAT) and income tax payments between 2018 and 2021.

    Despite importing sufficient clinker to manufacture and sell ¢1.36 billion worth of cement based on Ghana Standards Authority (GSA) standards, the company reported a mere ¢223 million in revenue, significantly under-declaring their earnings by 84%. The GRA estimates that this under-declaration led to a tax loss of ¢490 million for the state.

    A GRA official present during the operation said “The evidence we have gathered thus far paints a clear picture of deliberate tax evasion, with Wan Heng Ghana Ltd. grossly under-declaring their revenues and evading their tax obligations. Such illicit practices hinder Ghana’s efforts to raise domestic revenue and address pressing economic challenges”.

    In response to the situation, the Chamber of Cement Manufacturers Ghana (COCMAG), which includes Wan Heng Ghana Ltd. as a member, has emphasized the significance of all cement manufacturers meeting their tax responsibilities to contribute to the nation’s welfare. COCMAG has reaffirmed its dedication to fostering fair competition and ethical conduct within the cement industry.

    As the investigations proceed, the authorities have expressed their determination to hold those accountable for tax evasion responsible, demonstrating their unwavering commitment to preserving national integrity and safeguarding the country’s economic interests.

  • It is bad tactics by our competitors MD of La Bianca rejects tax evasion allegations

    The Managing Director of La Bianca Company Limited, Etse Gadegbeku, has rejected allegations of tax evasion levelled against his company by a private citizen, Fred Asare.

    Mr Asare has petitioned the Office of the Special Prosecutor to investigate La Bianca Company Limited, a frozen food importation company, for tax evasion.

    In the petition intercepted by GhanaWeb, Mr Frank Asare, who is the petitioner, said the company whose beneficial owner is one Eunice Hinneh Asomah a member of the governing Board of Ghana Ports and Habour Authority, and a Council of State representative has over a period had its imported products not subjected to approved taxes and levies as prescribed by law.

    According to the petitioner, he has uncovered through painstaking investigations that the evasion of tax by La Bianca is with the support of some officials of the Customs Division of the Ghana Revenue Authority.

    “Complainant says it is against this background that he wishes to petition your office to investigate these shady dealings between the Ghana Revenue Authority and La Bianca Company Limited and its subsidiaries pursuant to section 27 (1) of the Office of the Special Prosecutor, 2017 (ACT 959),” the petition added.

    Among other things, the petitioner said the approval of some 10% markdown on legally prescribed benchmark values to La Bianca Company Limited by the Customs Division “was done in an arbitrary and discriminatory manner with the intent to unduly favour La Bianca Company Limited over its business competition.”

    But speaking in an interview with Asaase Radio, the MD of the company denied the allegations saying the underlying motive is a tactic by their competitors to smear the image of La Bianca to gain an advantage for the Christmas shopping season.

    “We operate in a highly competitive environment, and I strongly believe these are bad tactics by our competitors to smear the image of the company and the CEO Hon. Eunice Buah Asomah Hinneh, to gain [an] advantage for the upcoming busy Christmas season. This is the latest move after all attempts by them had failed,” Gadegbeku said.

    “We strongly deny the allegation of corruption and import duties evasion. Labianca company went through all the legal and proper application processes before the discount was given. The substance of their petition does not deny the practice of applying for discount and failed to address the valuable contributions that the company is making to the society as an indigenous Ghanaian business led by a woman”.

    “Hon. Eunice Buah, the CEO of the company, did not at any point in the process influence the decision because of her status as a Council of State representative,” he added.

    Mr Frank Asare, in his petition to the Special Prosecutor, dated November 16, 2021, said, “The beneficial owner of the company enjoys this arbitrary markdown because of her position of influence as a member of the governing board of the Ghana Port and Harbour Authority and a member of the Council of State.”

    The Managing Director of La Bianca Company Limited, Etse Gadegbeku, has rejected allegations of tax evasion levelled against his company by a private citizen, Fred Asare.

    Mr Asare has petitioned the Office of the Special Prosecutor to investigate La Bianca Company Limited, a frozen food importation company, for tax evasion.

    In the petition intercepted by GhanaWeb, Mr Frank Asare, who is the petitioner, said the company whose beneficial owner is one Eunice Hinneh Asomah a member of the governing Board of Ghana Ports and Habour Authority, and a Council of State representative has over a period had its imported products not subjected to approved taxes and levies as prescribed by law.

    According to the petitioner, he has uncovered through painstaking investigations that the evasion of tax by La Bianca is with the support of some officials of the Customs Division of the Ghana Revenue Authority.

    “Complainant says it is against this background that he wishes to petition your office to investigate these shady dealings between the Ghana Revenue Authority and La Bianca Company Limited and its subsidiaries pursuant to section 27 (1) of the Office of the Special Prosecutor, 2017 (ACT 959),” the petition added.

    Among other things, the petitioner said the approval of some 10% markdown on legally prescribed benchmark values to La Bianca Company Limited by the Customs Division “was done in an arbitrary and discriminatory manner with the intent to unduly favour La Bianca Company Limited over its business competition.”

    But speaking in an interview with Asaase Radio, the MD of the company denied the allegations saying the underlying motive is a tactic by their competitors to smear the image of La Bianca to gain an advantage for the Christmas shopping season.

    “We operate in a highly competitive environment, and I strongly believe these are bad tactics by our competitors to smear the image of the company and the CEO Hon. Eunice Buah Asomah Hinneh, to gain [an] advantage for the upcoming busy Christmas season. This is the latest move after all attempts by them had failed,” Gadegbeku said.

    “We strongly deny the allegation of corruption and import duties evasion. Labianca company went through all the legal and proper application processes before the discount was given. The substance of their petition does not deny the practice of applying for discount and failed to address the valuable contributions that the company is making to the society as an indigenous Ghanaian business led by a woman”.

    “Hon. Eunice Buah, the CEO of the company, did not at any point in the process influence the decision because of her status as a Council of State representative,” he added.

    Mr Frank Asare, in his petition to the Special Prosecutor, dated November 16, 2021, said, “The beneficial owner of the company enjoys this arbitrary markdown because of her position of influence as a member of the governing board of the Ghana Port and Harbour Authority and a member of the Council of State.”

    But according to the MD, Madam Eunice Buah Asomah Hinneh, even though she previously served on the Board of the Ghana Ports of Harbour Authority, she is no longer a member of the GPHA board as alleged and that she wields no control over the activities of the Customs division of the Ghana Revenue Authority.

    Source: www.ghanaweb.com

  • Special Prosecutor petitioned to investigate Council of State Members company for tax evasion

    A private citizen has petitioned the Office of the Special Prosecutor to investigate La Bianca Company Limited, a frozen food importation company for tax evasion.

    In the petition intercepted by GhanaWeb, Mr Frank Asare, who is the petitioner said the company whose beneficial owner is one Eunice Hinneh Asomah a member of the governing Board of Ghana Ports and Habour Authority, and a Council of State, has over a period had its imported products not subjected to approved taxes and levies as prescribed by law.

    According to the petitioner, he has uncovered through painstaking investigations that the evasion of tax by La Bianca is with the support of some officials of the Customs Division of the Ghana Revenue Authority.

    “Complainant says it is against this background that he wishes to petition your office to investigate these shady dealings between the Ghana Revenue Authority and La Bianca Company limited and its subsidiaries pursuant to section 27 (1) of the Office of the Special Prosecutor, 2017 (ACT 959),” the petition added.

    Among other things, the petitioner said the approval of some 10% markdown on legally prescribed benchmark values to La Bianca Company limited by the Customs Division “was done in an arbitrary and discriminatory manner with the intent to unduly favour La Bianca Company Limited over its business competition.”

    “The beneficial owner of the company enjoys this arbitrary mark down because of her position of influence as a member of the governing board of the Ghana Port and Harbour Authority and a member of the Council of State,” the petitioner further said.

    Read the full petition below:

    Source: www.ghanaweb.com