M & C LOGISTICS AND TRADING LIMITED vs IDDRISU VENTURES & ANOR
2025
HIGH COURT
CORAM
- HER LADYSHIP JUSTICE DORIS AWUAH DABANKABEKOE (MRS
Areas of Law
- Tax Law
- Contract Law
- Evidence Law
- Commercial Law
2025
HIGH COURT
CORAM
AI Generated Summary
This Ghana High Court case involves M & C Logistics, a licensed gold trading company, and Iddrisu Ventures with its CEO, Iddrisu Adams, concerning who bore the legal duty to withhold and pay the 3% withholding tax (WHT) on unprocessed gold purchases made during 2017–2018. M & C Logistics alleged a verbal industry practice and specific arrangement under which Iddrisu Ventures would deduct, remit the WHT to the Ghana Revenue Authority (GRA), and supply WHT certificates. Payments were made into Iddrisu Ventures’ UBA Heritage Tower account, and GRA later issued audit letters in 2021 demanding substantial WHT (GH¢701,839.31 outstanding). Defendants denied any agreement and argued the Income Tax Act places WHT obligations on the purchaser. The court held that under section 85(2) the purchaser, here M & C Logistics, is the withholding agent; section 117(5) allows recovery from the withholdee only if the agent later pays the tax, but Plaintiff offered no documentary proof of payment. The alleged agreement was unproven and would be illegal even if made. The claims were dismissed and costs of GH¢5,000 awarded against M & C Logistics.
By its writ of summons filed on 29 th July, 2021, the Plaintiff claimed against the Defendants as follows:
a) An order directed at the Defendants to deduct and pay the 3% withholding taxes from the full payment that Plaintiff has made to the Defendants on the bars of gold to Ghana Revenue Authority as agreed on.
b) An order directed at Defendants to furnish Plaintiff with records of the withholding tax certificates covering the said transaction to enable the Plaintiff produce same to Ghana Revenue Authority.
c) Damages for breach of contract.
The Plaintiff is a Company registered under the laws of Ghana and licensed by all the relevant statutory bodies in Ghana to deal in the conducting of assay, storage, transport, purchase, export and import of gold.
1 st Defendant is licensed by the relevant authorities and statutory bodies in Ghana to buy and sell bars of gold and all other precious minerals and at all times material a supplier of gold to Plaintiff at various dates and times.
2 nd Defendant is the Chief Executive Officer of 1 st Defendant and at all times material the controlling mind of 1 st Defendant who represented 1 st Defendant in the various business transactions that Plaintiff engaged in with Defendants.
Plaintiff states that from the 10 th October 2017 through the 28 th March 2018, it at different dates and at different prices purchased various quantities of bars of gold from 1 st Defendant who was represented by 2 nd Defendant as its Chief Executive Officer in the said transactions.
Plaintiff says that as a term of the agreement which was executed between Plaintiff and Defendants, Plaintiff made various payments of money which included withholding taxes for the quantities of gold Defendants supplied it at different dates and at different prices by wire transfer into bank account number 0111064003516 which stands in the name of 1 st Defendant at United Bank of Africa at the Heritage Tower Branch in Accra and also physical cash.
Plaintiff states that being business partners engaged in the same gold industry and judging from the level of camaraderie and several business transactions which Plaintiff and Defendants have engaged in over the years, it was a further term of the agreement between the parties that instead of the Plaintiff deducting the three(3%)percent withholding tax from all the money it paid on each purchase of bars of gold from 1 st Defendant in accordance with Section 85(2) of the Income Tax Act, 2015(Act 896) 2 nd Defenda