The KPMG report on the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) has revealed that SML owes the government over GHC31 million in taxes.
During the period from 1 September 2020 to 30 April 2021, a bulk payment to SML covering invoices for an eight (8) month period did not have VAT and WHT deductions, amounting to GHE13.38 million.
This contradicts GRA’s standard practice of deducting such taxes for payments to SML between 1 June 2020 and 31 August 2023.
Additionally, SML failed to fulfil 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 amounts to GHC31.88 million.
The release of the report comes after weeks of increasing pressure from the public and civil society organizations calling for transparency due to reported issues with the contract. President Nana Akufo-Addo commissioned KPMG to audit the contract on January 2, 2024, with an initial deadline of January 16, 2024, which was later extended to February 23, 2024.
The report has raised concerns about the management of taxpayer funds and has prompted calls for accountability and reforms within the GRA. The government has stated that it will take appropriate action based on the findings of the report to ensure that such lapses do not occur in the future.