The Managing Director of Capstone Oil Limited, Kumah Kojo Daniel, has been sentenced to six months imprisonment for failing to remit statutory taxes and levies on petroleum products lifted by the company.
Justice Comfort Kwasiwor Tasiame of the Criminal Court at the Accra High Court delivered the ruling, finding Kumah guilty of violating Section 80 of the Revenue Administration Act, 2016 (Act 915), which mandates timely tax payments.
Capstone Oil Limited defaulted on critical petroleum levies, including the Special Petroleum Tax, Energy Debt Recovery Levy, Road Fund Levy, and Energy Fund Levy. As of April 2021, the company’s total tax and levy obligations stood at GH₵24,526,592.27, yet GH₵20,676,902.07 remained unpaid at the time of prosecution.
The case, prosecuted by state attorneys from the Ghana Revenue Authority (GRA), underscored the company’s prolonged non-compliance despite multiple enforcement efforts.
In her ruling, Justice Tasiame stressed the importance of tax law enforcement to ensure compliance and bolster national revenue mobilization. She noted that Capstone Oil’s failure to pay its levies deprived the state of essential funds needed for infrastructure and energy sector improvements.
Case Background
The case against Capstone Oil Limited and its Managing Director, Kumah Kojo Daniel, was initiated by the Ghana Revenue Authority (GRA), represented by prosecutor Joseph B. Owusu.
The GRA, as the complainant, is responsible for tax assessment, collection, and enforcement in Ghana.
Capstone Oil Limited, the first accused, is a registered taxpayer engaged in the marketing, transportation, distribution, storage, and retailing of petroleum products.
The second accused, Kumah Kojo Daniel, serves as the company’s Managing Director.
A review of the company’s tax records revealed significant non-compliance with tax laws. Specifically, as of April 2021, Capstone Oil Limited owed the state GH₵24,526,592.27 due to non-payment of the following statutory levies on petroleum products including Special Petroleum Tax, Energy Debt Recovery Levy, Road Fund Levy and Energy Fund Levy
Attempts to Recover the Debt
To recover the outstanding amount, the GRA issued multiple demand notices to Capstone Oil Limited. In response, the accused requested a rescheduling of the debt, citing financial difficulties.
However, the GRA declined the request on May 6, 2021, due to the company’s previous default on an earlier rescheduled payment plan.
With no payments forthcoming, the GRA escalated enforcement actions, issuing third-party debtor notices to the company’s bankers in an effort to recover the funds directly.
However, this enforcement did not yield the expected results, leading to legal proceedings.
Criminal Proceedings
Following continued non-compliance, the GRA filed criminal charges against Capstone Oil Limited and Kumah Kojo Daniel, accusing them of failing to pay tax, contrary to Section 80 of the Revenue Administration Act, 2016 (Act 915).
The court subsequently issued a criminal summons, compelling the accused to appear and answer the charges.
The GRA is committed to enforcing tax laws, ensuring that businesses fulfill their financial obligations to the state.
