Suspension of BDCs for Tax Evasion Inaccurate and Misleading – CBOD

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Suspension of BDCs for Tax Evasion Inaccurate and Misleading - CBOD

The Ghana Chamber of Bulk Oil Distributors (CBOD) has describe as inaccurate and unintendedly misleading the statement issued by the National Petroleum Authority (NPA) on two of its members, Misyl Energy Co. Ltd and Globex Energy Co. Ltd for evading tax.

In a statement signed by the Corporate and Regulatory Affairs Unit of the CBOD, the BDCs do not collect petroleum taxes or pay petroleum taxes in the petroleum tax administration process.

According to CBOD, that function is the sole preserve of Oil Marketing Companies (OMCs). The taxes are to be paid by OMCs after reconciliation with the GRA subject to agreed payment terms.

The Chamber indicated that the BDCs mentioned in the NPA release have not been sanctioned for tax evasion but rather for under declaring their fuel sales volumes to the NPA.

“An action which is considered a breach of the NPA Act, 2005, (ACT691) as well as the terms and conditions governing their licenses,” the statement posited.

CBOD added that even though it acknowledges and supports interventions by the NPA and government agencies to address the menace of petroleum tax evasion that continues to bedevil the industry, the reason for their suspension is erroneous.

The Suspension
The NPA has suspended five Bulk Oil Distributors (BDCs) and three Oil Marketing Companies for engaging in activities leading to loss of tax revenue to the government.

The BDCs, whose one month suspension began on 18th July, 2018 are Union oil Ghana Limited, Agapet Limited, Excel Oil Company Limited, Misyl Energy Company Limited and Globex Energy Company Limited.

The OMCs, Petro Afrique Company Limited, Life Petroleum Company Limited and Unique Company Limited have been suspended for three months beginning 18th July, 2018.

As part of their suspension, they are not to engage in the sale, supply, transportation, discharge and receipt of petroleum products for those periods.

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