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.