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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

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.

JUDGMENT