The Domestic Tax Revenue Division of the Ghana Revenue Authority (GRA), as part of its ongoing compliance and enforcement activities, has intensified enforcement actions against businesses operating within the night economy.
This follows the discovery that a significant number of night-time establishments were either unregistered or failing to meet their tax obligations.
Speaking to the media, the Coordinator of the GRA Night Market Economy Project, Alpha Senanu Hossoo, said the Authority’s intervention had become necessary after two years of monitoring compliance levels among night businesses.
He said nightlife in Accra had grown into a vibrant economic space where significant spending took place. Compliance among operators remained low, such that although a few businesses complied with tax laws, the majority did not.
“Many of us spend money at night, and these businesses make substantial income from that. Unfortunately, most of them are not complying with the tax laws,” he added.
Mr. Hossoo, who doubles as the Chief Revenue Officer of the GRA, said the team visited about seven businesses, including nightclubs, pubs, bars, lounges and restaurants, and that out of these, five were found not to be registered with the GRA, while others, though registered and filing returns, had failed to pay the taxes due, leading to accumulated arrears in the system.
He said the GRA had reached a point where enforcement would no longer be limited to daytime operations, such that under the government’s 24-hour economy agenda, the Authority would now ensure that businesses operating in the evening and at night complied equally with tax laws.
He said at Cloud Nine, a popular entertainment spot located at Osu, the GRA sealed off the premises for the fourth time after repeated failures by management to honour invitations to engage with the Authority.
Mr. Hossoo said the establishment was first invited to the GRA office in 2023 and had received three additional invitations this year, all of which were ignored.
“Top management took the decision that we seal off the premises as a signal to other taxpayers that if you don’t comply with the tax laws, GRA has the legal backing to shut down your business,” he stressed.
He said sealing a business meant the taxpayer was prohibited from operating on the premises and that, where applicable, the GRA had the legal right to sell the assets to recover outstanding taxes.
Mr. Hossoo warned that the law allowed the Authority to conduct retrospective tax assessments, going back as far as evidence permitted.
He added that under the Revenue Administration Act, penalties of up to 300 per cent could be imposed on unpaid taxes once assessments were completed.
He cautioned that businesses that had been served notices and failed to respond would face similar enforcement actions, including closure of their premises.
“The Night Market Economy Project will continue. We will not give up until we bring sanity into the night space,” he added.
He stressed that night businesses were benefiting from the country’s vibrant nightlife and should contribute their fair share to national development by paying taxes.
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