By Assan Bah
The National Assembly’s Joint Committee on Finance and Public Enterprises (FPAC), and the Public Enterprises Committee (PEC), have disclosed in a report that Creed Energy and Ultimate Biege Logistics, owe the Gambia Revenue Authority (GRA) D20, 873,639.89,in unpaid tax obligation.
These two companies were allegedly involved in the sale of $30 million worth of petroleum products in The Gambia, and the committee alleged that despite being established to conduct business in country, they did not fulfil their quarterly and annual returns in line with the requirement of the Income and Value Added Tax Act 2012. The parliamentary committees disclosed that GRA has not taken any alternative measures to assess the tax obligations for both companies, nor have they taken any additional administrative measures to recover the outstanding taxes. The committee further noted that GRA did not extend its Tax assessment / research especially in relation to shipment of funds by Apogee FZC, to its foreign bank account, as contained in the FIU report.
The Committee said during its engagement with the Commissioner General (CG) of GRA, it enquired about the role of its officers at the Gam Petroleum (GM) Depot; that they were informed that the primary responsibility of these officers at the GP depot is to ensure that appropriate taxes on petroleum products are levied and collected. He informed the committee that delivery of petroleum products is typically allowed first, and payment is made retrospectively, noting that payments are usually settled around the 25th day of each month, after the total quantity up-lift by the Oil Marketing Companies (OMCs) is determined.
The Committee inquired about transit taxes for petroleum products which according to CG Darboe, attracts a processing fee of 1.5%. He indicated that the Authority has implemented an electronic tracking system which monitors truck movements.
The Committee inquired about GRA’s response to an intelligence report regarding the alleged sale of 36,953.614 metric tons of petroleum products worth $30 million.
In his response, CG Darboe said based on their review after receiving the intelligence report, Apogee FZC was not found to have violated any international trade law. He however said that in their observation, Creed Energy and Ultimate Biege Logistics (UBL), failed to pay the appropriate taxes applicable to them, despite being registered in the Gambia.
As a result, he said the GRA conducted a Best of Judgement (BOJ) assessment on both entities, pursuant to the legal provision which allows such action in cases where registered businesses fail to file tax returns. He said the objective of the BOJ assessment was to prompt compliance and recover revenue due to the State.
The Committee inquired about the GRA’s knowledge on the aforementioned companies operations in the country, to which the CG responded by claiming that GRA only discovered their activities after receiving the FIU report. He indicated that the said companies were found to be conducting business without fulfilling their tax obligations and selling petroleum products to licensed OMCs.
The Committee requested copies of the Memorandum and Articles of Association for Creed Energy and Ultimate Biege Logistics, because they are required for issuing Tax Identification Numbers (TINs).
The Committee further inquired about Apogee Limited Gambia, which was reportedly registered in the country in January 2024 and therefore, requested the following documents:
- Memorandum and Articles of Association for Apogee Limited Gambia;
- Any available tax returns filed by the entity; and
- Any other relevant information that may assist the Committee in its inquiry.
The Committee also asked whether the GRA was aware of the ongoing court case involving Creed Energy, Access Bank Gambia Limited, and Ultimate Biege Logistics.
CG Darboe confirmed the Authority’s involvement in the case due to the companies’ failure to submit tax returns, but said the GRA’s motion was dismissed in Court.
Asked whether they have appealed against the court’s ruling, GRA’s Director for Legal and Board Services informed the Committee that they did not file an appeal, adding that the decision not to appeal was based on the possibility of funds from the affected companies being transferred to Apogee FZC in Dubai, before the appeal process could be completed.
The Authority informed the committee that it planned to use alternative administrative measures to recover outstanding taxes from Creed Energy and Ultimate Biege Logistics, as they are registered and operational within the country.
CG Darboe informed the committee that Creed Energy’s Legal team were engaged on their tax obligations, and said GRA retains the optional position to impose legal proceedings or enforce measures to ensure compliance by blocking the companies’ access to the ASYCUDA World system, to protect public revenue.
In its findings, the committee indicated that it has learned that even though Creed Energy and Ultimate were legally registered in the country and were issued TIN Certificates at the time of registration, the authority did not maintain taxpayer files for them.
The Committee noted that the authority’s interest in evaluating the judgment assessments of the two companies was heightened only after receiving the STR report from the FIU.
It further reported that Creed Energy and Ultimate Biege Logistics who have been established to conduct business within the jurisdiction have not been fulfilling their quarterly and annual returns in line with the requirement of the Income and Value Added Tax Act, 2012.
The committee said it found out that GRA has not taken alternative measures to assess tax obligations for both companies, and has not taken alternative administrative measures to recover outstanding taxes.
The committee further noted that GRA did not extend its Tax assessment / research especially in relation to shipment of funds by Apogee FZC to its foreign bank account, as contained in the FIU report. The Committee noted that the following documents were not submitted as requested by the Committee:
- Any available tax returns filed by the entity, and
- Any other relevant information that may assist the Committee in its inquiry.
Based on testimony from the Commissioner General of the GRA and legal team, the committee suggested for the need of an active regulatory monitoring and adequate institutional response to recover public revenue.
The Committee noted during its proceedings, GRA issued BoJ to assess Creed Energy and Ultimate Biege Logistics for outstanding tax obligations in the sum of D8, 576,716.08 and D12, 296,923.81 respectively, and the amounts remained outstanding as at the time of reporting.
The Committee therefore made the following recommendations:
- GRA must establish a proactive compliance mechanism for all newly registered companies with mandatory quarterly verification of filings and activity status.
- GRA should take all measures to recover outstanding tax obligations of Creed Energy and Ultimate Biege Logistics in the sums of D8, 576,716.08 and D12, 296,923.81, respectively.
The Committee recommended that the GRA enhance the capacity of its existing Units to ensure that taxes are paid on time.
Meanwhile, the report has not yet been adopted by the National Assembly, and a motion was made to allow lawmakers time for review before debating it.
