The Ghana Revenue Authority (GRA) has issued a seven-day ultimatum to Electrochem Ghana Limited to settle an outstanding tax liability of GH¢8.6 million, warning that failure to comply will result in tougher enforcement measures, including the possible closure of the company’s entire facility.
As part of the enforcement exercise on Wednesday, July 8, 2026, the GRA sealed the company’s administration block after years of unsuccessful attempts to recover the unpaid taxes, which date back to 2021.
The operation, led by the Area Enforcement Manager for Accra Central, Mr Joseph A. Annang, forms part of the Authority’s intensified efforts to improve tax compliance and recover revenue owed to the state.
Speaking to journalists after the exercise, Mr Annang disclosed that the company had received several demand notices over the years, including an immediate demand notice issued on January 7 and a final notice on February 13, 2026, but had failed to honour its tax obligations.
According to him, the outstanding liability had grown to GH¢8.6 million due to accumulated interest.
He said although the GRA has the legal authority to shut down the company’s entire operations, the Authority exercised restraint after considering the potential impact such an action could have on workers, customers and suppliers.
Mr Annang explained that because Electrochem is an indigenous Ghanaian company, the GRA opted to strike a balance between enforcing the tax laws and protecting local businesses and employment.
“We listened to management’s explanation, including the impact of the recent floods on their operations. While we appreciate their challenges, these are historical tax obligations and must be honoured. As a concession, we have sealed only the administration block while allowing production and business activities to continue,” he said.
During discussions with the enforcement team, Electrochem made an immediate payment of GH¢200,000, which the GRA accepted as a partial payment.
Mr Annang, however, described the amount as inadequate compared to the total debt and stressed that the payment did not alter the Authority’s decision to enforce the law.
“We have decided to seal the administration block and allow them to continue operating so they can mobilise resources to pay the remaining balance within seven days,” he said.
He warned that if the company failed to settle the outstanding amount or agree on an acceptable payment plan within the stipulated period, the GRA would return to seal the company’s main entrance, effectively halting operations.
“I can tell you that if they fail to pay after the seven days, then our next visit here will not be friendly at all. We know it is an indigenous business, and we have to protect it, but the state also needs the revenue to finance critical national development projects,” he added.
Mr Annang noted that enforcement actions remain the GRA’s last resort and are only undertaken after repeated engagements with taxpayers fail to produce results.
“We have always tried to be friendly to taxpayers. When you see us carrying out enforcement like this, it means all the friendly approaches have been exhausted. We follow due process by serving all the necessary notices before taking enforcement action,” he explained.
He also cautioned businesses against filing tax returns without making the corresponding payments, warning that interest continues to accumulate on unpaid tax obligations.
The GRA urged all businesses with outstanding tax liabilities to voluntarily engage the Authority and agree on payment arrangements before enforcement actions become necessary.
Management of Electrochem appealed for additional time to settle the debt, but GRA officials declined the request, insisting that the company had already been given sufficient opportunities to honour its obligations.
The latest action underscores the Authority’s renewed commitment to strengthening revenue mobilisation and ensuring that all taxes due the state are collected in accordance with the law.
