Oil Marketing Companies defaulted in paying over ¢400m re-scheduled debt – Report

The 2021 Auditor General’s report has revealed that Oil Marketing Companies (OMCs) defaulted in paying re-scheduled debt amounting to GH¢402,049,572.00.

The report explained that section 47 of the Revenue Administration Act, 2016 (Act 915) provides that, a taxpayer may apply in writing to the Commissioner-General for an
extension of time to pay tax under a tax law.

A taxpayer may re-apply to the Commissioner–General before the end of the extension period but an extension of time to pay tax shall not exceed twelve months in aggregate.

Where an extension is granted and the taxpayer is permitted to pay by instalments and the
taxpayer defaults in paying any of the instalments, the whole balance of the tax
outstanding becomes payable immediately.

“Contrary to the above,” the report said, “our review of files and the reschedule cash book
from January 2020 – December 2021 disclosed that 28 Oil Marketing Companies
(OMCs) failed to settle their rescheduled debts of GH¢402,049,571.70.”

The report further “recommended that the Commissioner should use legal means to
recover the outstanding amount of GH¢402,049,571.70 from the OMCs involved.”

source:3news