Home | News | Auditor-General erred, we’re tax compliant - Tel Energy refutes tax default claims

Auditor-General erred, we’re tax compliant - Tel Energy refutes tax default claims

Business News of Tuesday, 13 August 2019

Source: www.ghanaweb.com

Tel Energy1 Tel Energy Limited is an Oil Marketing Company

One of ten Oil Marketing Companies cited by Auditor- General Daniel Domelovo for non-compliance and default of taxes has debunked the reports.

In a press release copied to Ghanaweb, Managing Director of Tel Energy, Lawrence Lou Anuseh dismissed the claim tagging his outfit as one of the OMCs with tax liability of over 0ne million cedis on excuse duties, taxes and levies in 2018. “Tel Energy wishes to state categorically that contrary to the report, it is fully taxed compliant and has not defaulted in any tax repayments.” Part of the statement reads

It further noted that “investigations conducted, however, indicate that the tax amount of GHC 1,303,540.00 cited in the Auditor-General’s report relates to a specified volume of Residual Fuel Oil (RFO) that was loaded from the Tema Oil Refinery (TOR) between 1st and the 15th of June, 2017. All the taxes payable on this loaded volume for the stated period amounting to GHC 465,550.00 was duly settled in full by the due date.

We affirm that the Auditors incorrectly computed the taxes by using the wrong per litre rate which resulted in the alleged default. We have “the volume reconciliation with the Customs Division of GRA, GCNET declaration and payment receipts to confirm this assertion”

Below is the full statement from Tel Energy

Background

The Auditor-General’s Report, which has already been laid in Parliament, said Agapet, Nasona, Radiance Petroleum Limited failed to pay GH?7,757.88; GH?11,070; GH?3,682,004.50 respectively.

Also, Tel Energy Ltd, So Energy, Star Oil and GOIL have also been cited for default in paying GH?1,303,540.00; GH?20,984.40; GH?554,220; and GH?27,688,978.98 respectively.

The rest of the defaulting OMCs are Hills Oil, GH?64,024.80; Champion Oil, GH?76,678.20; and Glee Oil, GH?265,785.30.

The delay by the 11 OMCs to pay on schedule attracted a total interest of GH?783,173. The companies are Nasona, GH?335,761.08; Radiance, GH?99,432.17; Venus, 170,630.03; Baffour Gas, GH?468.91; Mighty Gas, GH?38,115.07; Engen Oil, GH?6,744.66; Glory Oil, GH?30,477.95; Hills Oil, GH?13,809.70; World Gas, GH? 6,053.01; Glee Oil, GH?33,780.28; and EV Oil, GH?47,904.73.

The report also said three OMCs failed to pay GH¢597,220 being the associated taxes in connection with 6,952,500 litres of Marine Oil Gas Foreign (MGOF) lifted in 2017.

They are Radiance, Star Oil and GOIL.

The International Standard Organisation Procedure (ISO PROC) No.100, which was adopted in 2012, sought to ensure the full and timely payment of taxes and penalties.

Violation of Excise Duty Act

Mr Domelevo said efforts would be made to bring the defaulting OMCs to order, adding that the appropriate procedure would be followed to recover what was due the state.

He observed that “weak oversight on OMCs with respect to penalties and interest payments, in our view, accounted for the anomaly,” indicating that defaulting OMCs had violated Section 32 of the Excise Duty Act 2014, (Act 878).

That act states that “a manufacturer who fails to make a payment required under this act to the Commissioner-General of GRA by the due date is liable to pay a penalty of 15 per cent of the amount due and an interest of five per cent of the amount due for each day that the failure continues.”

Mr Domelevo urged the Customs Division of GRA to strengthen its control on the OMCs to ensure that duties on all petroleum products that were lifted were paid for on time.

“We also urge the Commander of that Division to ensure the recovery of the outstanding amount without any further delay,” he stressed.

Most Watched Videos

Most Read News

Best Of The Web




MOST POPULAR

Recent Comments

Most Popular Posts

>
News - Articles
Ghana Articles News
Go Up!