Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has presented evidence that Rock City Hotel, owned by the Minister for Food and Agriculture, Bryan Acheampong, misrepresented its tax returns, leading to a fine from the Ghana Revenue Authority (GRA).
This revelation follows Ablakwa’s opposition to the Social Security and National Insurance Trust’s (SSNIT) decision to sell 60 percent of its shares in four hotels to Rock City Hotel.
In a recent interview on Accra-based Metro TV, Ablakwa disclosed documents indicating that Rock City Hotel reported to the GRA on March 12, 2021, expecting to incur losses for that year. However, Ablakwa alleged that the hotel failed to file tax returns for the entire year of 2022, further questioning the hotel’s financial transparency.
Minister Bryan Acheampong had previously refuted Ablakwa’s claims, challenging him to provide evidence. In response, Ablakwa revealed that Rock City Hotel only rectified their tax obligations after his exposé brought their financial discrepancies to public attention.
The hotel rushed to the GRA on May 23, 2024, and declared profits for 2022, a significant shift from their initial loss declaration.
“On March 12, 2021, they posted returns stating they would incur losses for the year. Two years later, on March 9, 2023, they reported a debit adjustment for two withholding taxes amounting to GH¢20,782. For the entire year of 2022, there were no filings at all,” Ablakwa disclosed.
This abrupt change in financial reporting raised significant concerns about Rock City Hotel’s business practices. The GRA fined the hotel GH¢4,390 for their late filings, following their sudden declaration of profits instead of losses. This fine further substantiates Ablakwa’s claims that the hotel’s financial practices were questionable and inconsistent.
Mr Ablakwa also questioned how Rock City Hotel managed to obtain a tax clearance certificate to participate in the SSNIT bid when they hadn’t filed taxes for two years. He emphasized that the company’s actions were a direct reaction to his exposé, highlighting a pattern of irregular financial reporting.
“So, it means that when they put in the bid, they clearly didn’t have a tax clearance certificate. After my exposé, they went to the GRA on May 23, 2024, and declared profits, resulting in a tax liability of GH¢395,000. They were also fined GH¢4,390 for their late filings,” Ablakwa elaborated.
He further criticized the purchase decision, arguing that Labadi Beach Hotel, one of the hotels involved in the SSNIT transaction, was notably more profitable.
“Labadi Beach Hotel reported profits of one hundred and fifty-eight million, yet Rock City Hotel, which claimed it would make no profits, is now poised to buy it. This is inconsistent and troubling,” he stated.
Source: tigpost.co
