The KPMG report on the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) has uncovered significant tax discrepancies, with SML found owing the government over GHC31 million.
The GRA and SML entered into a number of contracts to enhance revenue assurance in the downstream and upstream petroleum sectors, as well as the minerals and metals resource value chain.
But it has been observed that during the period from 1 September 2020 to 30 April 2021, a bulk payment to SML covering invoices for an eight-month period lacked VAT and WHT deductions, amounting to GHC13.38 million. This departure from GRA’s standard practice contradicted previous deductions made for payments to SML between 1 June 2020 and 31 August 2023.
Furthermore, SML failed to meet its statutory obligations by neither filing returns nor remitting these taxes to GRA. Pursuant to Section 71(1) of the RA Act, the accrued interest on the tax liability is estimated at GHC18.50 million owed by SML to GRA as of 31 January 2024.
Consequently, the total liability incurred by SML stands at GHC31.88 million.
Upon review, the discrepancy was brought to the attention of GRA, prompting their subsequent communication with SML, demanding settlement of the outstanding amount.
The release of the KPMG audit report by President Nana Akufo-Addo comes in response to weeks of mounting pressure from the public and civil society organizations for transparency regarding the contentious contract. The President commissioned KPMG to audit the contract on January 2, 2024, with an initial deadline of January 16, 2024, later extended to February 23, 2024.