Accra, Dec. 08, GNA - Management of Value Added Tax (VAT) Service on Friday closed down Reality Protection Agency, a security company in Accra for defaulting in the payment of 113.8 million cedis owed to the Service for two years.

The Service realized that the company had changed its original name from Elite Protection Agency to Reality Protection Agency without formally notifying it.

This came to light when the Service embarked on an inspection tour of defaulting companies within Accra Metropolitan Area. Some of the defaulting companies pleaded with the VAT officials and subsequently made some payments.

The management of Ohene Media Studios which owed the Service 82.5 million cedis assured the team of payment before Monday without which the company would be closed down.

Mr Henry Sam, Head of the Enforcement Team, which embarked on the exercise, said the action had become necessary due to the increase rate of non-payment by some defaulting companies.

He explained that without proper periodic checks on the defaulting companies by the Service there would come a time when voluntary complying companies would follow their footsteps and it would affect tax collection and a decline in socio-economic development in the country. "This action is to punish delinquent tax payers since they do not comply with the terms of payment," he added.

Mr Sam advised companies which had been served with warrants to quickly approach VAT offices to make full payments or face the penalty. He said the action would continue until the end of the year.