GRA shuts down Chinese firm

Premises of Huantian Deli Ghana Limited, a Chinese Manufacturing Company operating in the country, have been closed down by the Ghana Revenue Authority (GRA) for failing to produce business certification documents allowing it to operate as a business entity.

The company’s officials were unable to produce a certificate for commencement of business, and permits from Ghana Standard Authority (GSA) and Environmental Protection Agency.

 They could also not produce their passports, claiming they were in the possession of their authorities.

At the time of the visit to the company’s premises by a task-force made up of the GRA officials, the Ghana Immigration Service and the Ghana Police Service, the company which produces foam mattresses was in full operation with trucks loading the mattresses for transportation to Kumasi.

However, a search in one of the rooms revealed a passport with an emergency Ghanaian visa that expired at the end of May.

A search also revealed that Value Added Tax receipts and invoices were issued to the company’s distribution chain in Kasoa and Winneba in the Central Region; Kade and Asuom in the Eastern Region; Kaneshie and Sapeiman in Accra. 

Mr. Maxwell Tsatsu, Deputy Commissioner, Enforcement and Compliance Unit of the GRA, told the media that GRA had received a tip-off about operations of the company, after which it has been monitoring their operations for some time now. 

“We secretly came to look at their environment and bought products; and the price they gave us compared to the market price was too far lower, so we knew that there was something wrong.

“We looked at their custom declaration documents and found that they grossly undervalued their imports, and when they sell the goods they also don’t collect tax; so with that they could sell below the normal market price.

“They could not provide their manufacturing permit, EPA permit, GSA permits; they could not produce any of them to us.

“After registering with the registrar of companies, you must have an approval from the Ghana Standards Authority to come and check the product, and the E PA also does an environmental assessment to ensure that the environment is congenial for industrial work, safety of workers; but there is nothing to show that all this has been done,” he said

Even though some of the Ghanaian workers claimed the company had been in operation for three months, the GRA official maintained that import documents indicated the company had been working since November 2012.

“We were told they were working in Kasoa before moving to this area,” he said.

Mr. Tsatsu indicated that until all the company’s tax obligations are sorted out it will remain closed, adding that the action was part of a crackdown on companies that are defying the country’s tax laws.

“Apart from evading taxes, the company has also mis-labelled the chemicals used in its operations in order to pay less tax; GRA will carry out an investigation and come out with the appropriate sanctions.

“The GRA will also investigate the circumstances in which 10 new trucks imported by the company were declared and cleared as second-hand vehicles.”

Mr. Edward Kofi Owusu, Assistant Controller, Ghana Immigration Service told B&FT in an interview that the passport of one of the Chinese persons, Han Hui, showed that he entered the country on March 31, 2013 on an emergency entry visa and has since not extended his stay.  Besides, he has no resident and work permits. 

Mr. Owusu said the Immigration Service will investigate how they came into the country: “This defies our understanding regarding the country’s immigration laws.”