Ghana GRA: Challenges Servestar Minwax GH¢79m Claim, Seeks Audit

• The Ghana Revenue Authority (GRA) is challenging a GH¢79.65 million judgment debt claimed by Servestar Minwax (WA) Limited, which originated from a small import duty overpayment in 2009.
• The significant increase in the claim is attributed to a 35% daily compound interest rate applied over time.
• A High Court order on July 22, 2026, directed the Bank of Ghana to release funds from the GRA’s Tax Refund Account to Servestar Minwax and its director, Henry Manly-Spain.
• The GRA has appealed this ruling, seeking to set aside the garnishee order and has secured a High Court approval for an independent forensic audit of the judgment sum.
• The authority argues its Tax Refund Account is legally protected under Section 69 of the Revenue Administration Act, 2016 (Act 915), and is dedicated solely to legitimate tax refunds.

The GRA's firm stance in this Ghana tax judgment debt challenge reflects its broader commitment to upholding the rule of law while diligently safeguarding the financial interests of the State.

The Ghana Revenue Authority (GRA) is vigorously disputing a GH¢79.65 million judgment debt sought by Servestar Minwax (WA) Limited, a claim that originated from an alleged overpayment of import duties amounting to less than GH¢1 million in 2009. This significant financial demand, specifically GH¢79,651,132, has escalated dramatically over the years, primarily due to the application of a 35% daily compound interest rate. The substantial increase from the initial modest sum underscores the contentious nature of this long-standing dispute between the GRA and Servestar Minwax.

Adding to the complexity, the High Court’s Commercial Division 3 issued an order on July 22, 2026, directing the Bank of Ghana to release the disputed funds from the GRA’s Tax Refund Account. This order was made in favor of Servestar Minwax and its director, Henry Manly-Spain. The GRA, however, has swiftly moved to challenge this directive, indicating its strong opposition to the enforcement mechanism and the underlying claim itself. The Ghana GRA Servestar Minwax GH¢79m claim represents a critical juncture in tax enforcement and dispute resolution within the country.

In response to the High Court's decision, the GRA has launched a multi-faceted legal offensive. The authority has formally appealed the ruling and is actively seeking to have the Garnishee Order Absolute set aside. A key development in the GRA's strategy occurred on August 20, 2026, when the High Court granted its request for an independent auditor to conduct a forensic reconciliation of the judgment sum. This audit aims to verify the accuracy of the GH¢79.65 million demanded by Servestar Minwax, ensuring that the final liability reflects a correct assessment. This move highlights the GRA's commitment to scrutinizing the Servestar Minwax judgment debt audit.

Furthermore, the GRA is vehemently contesting the attachment of its Tax Refund Account in Ghana. The authority asserts that this account is legally protected under Section 69 of the Revenue Administration Act, 2016 (Act 915), and is specifically earmarked for the payment of legitimate tax refunds to taxpayers. The GRA has also brought to the court's attention documents submitted by Henry Manly-Spain's solicitor, which reportedly suggest that the amount he considers genuinely owed for overpaid duties and the value of containers sold since 2009 is considerably less than the GH¢79.65 million awarded. This discrepancy further fuels the GRA's challenge against the Ghana High Court garnishee order GRA.

The Commissioner-General of the GRA has initiated an internal audit to review the reconciliation and litigation processes surrounding this matter, underscoring the authority's dedication to internal oversight. While an earlier application by the GRA for a stay of execution was unsuccessful, the authority intends to renew this application before the Court of Appeal once the new legal year commences. This persistent legal pursuit demonstrates the GRA's resolve to prevent the payment of what it deems an unvalidated judgment debt from public tax revenue.

The GRA's firm stance in this Ghana tax judgment debt challenge reflects its broader commitment to upholding the rule of law while diligently safeguarding the financial interests of the State. The authority has explicitly stated its policy not to permit unvalidated judgment debts to be disbursed from tax revenues, emphasizing its role in protecting public funds. This case, involving the GRA Tax Refund Account attachment Ghana and the significant sum, serves as a clear indicator of the GRA's aggressive approach to challenging large claims, particularly those inflated by compound interest, and its reliance on statutory protections like Revenue Administration Act 915 Section 69.

Lawyers and compliance officers advising clients on tax disputes or judgment enforcement against state entities in Ghana should note the GRA's aggressive stance on challenging large judgment debts, particularly those involving compound interest and attempts to attach the Tax Refund Account. This case highlights the GRA's strategy of seeking independent audits and invoking protections under Section 69 of the Revenue Administration Act, 2016 (Act 915), signaling increased scrutiny on such claims and potential challenges to enforcement mechanisms.

Source: Original reporting via myjoyonline.com