Akim Oda (E/R), Aug. 5, GNA - The Eastern Regional Value Added Tax (VAT) Service on Monday impounded the properties of two timber milling companies at Akim Oda in a "distress action" to recover unpaid VAT collections of about 300 million cedis.

The Eastforest Products Limited (EPL) owed 156.074 million cedis over a period of two and half years as at July, this year, while the JOWAK Sawmills Company Limited owed 133.726 million cedis for a two-year period.

A team of officials led by the Eastern Regional Head of the Service, Mr Francis A. Sapathi, was at the premises of the companies and tied red bands on their properties, including logs, sawn timber and machinery without any violent reactions from the management and staff.

Briefing newsmen after the exercise, Mr Sapathi explained that under the VAT law, the Commissioner is permitted to undertake such Distress Action against a defaulting VAT registered trader who failed to pay up outstanding VAT payments collected on monthly basis after several written and verbal warnings.

He said the Distress Action was among the measures in demanding the payment of outstanding collections from recalcitrant defaulters after giving them the 14-day Final Demand Notice and as a prelude to the auctioning of the properties to defray the debt, if the companies failed to pay up within the 14 days.

According to Mr Sapathi, the action could be rescheduled if the defaulters had communicated to the Commissioner any difficulties affecting their payment of the outstanding.

He said the action was an on-going exercise in the region and warned other defaulters to pay up their debts or face similar action. Mr Sapathi, who appealed for public support in checking against defaulters of VAT collections announced the setting up of an information and complaints unit within the Regional VAT Office at Koforidua. He said the public could assist by demanding for VAT registration certificate, payment invoice or report the traders who failed to issue the VAT invoice through telephone.