Waiver of Penalty and Interest: GRA reminds taxpayers of forfeiture of right after Dec. 31
Statutory tax collection body, the Ghana Revenue Authority (GRA), is reminding the public particularly taxpayers of the need to redeem themselves and pay tax arrears owed given that the deadline for the to settle all outstanding tax debts before the expiration of the waiver of Penalty and Interest is on December 31, 2021.
According to the GRA, taxpayers who were granted the amnesty are to note that if they do not pay the outstanding liabilities as agreed in the conditions for granting the waiver, by December 31, 2021, the penalties and interest wavier will be forfeited.
Adding that, they will now have to pay both the principal tax debt together with penalties and interest.
“Taxpayers are advised to settle all their outstanding tax debts, and to also note that after the expiration of the deadline, rigorous enforcement exercises to recover all tax debts will follow,” read the communique published on the website of the GRA pertaining to the waiver of penalty and interest.
The waiver of penalty and interest on tax arrears was first made mentioned of in the 2021 Budget Statement.
Read: AfDB extends $400,000 grant for dev’t of regional financial markets infrastructure
Its introduction by government as part of a number of initiatives such as 30 per cent tax rebate on income tax for hotels and restaurants, suspension of quarterly income tax instalment payments for the second, third and fourth quarters of 2021 for small businesses among others by government, was to cushion the effects of the pandemic on the citizenry and businesses.
Following its passage into law, the Waiver of Penalty and Interest Act, 2021, grants a waiver of penalty and interest on accumulated tax arrears up to the end of December 2020 for persons who make arrangements with the GRA for payment of the principal tax by December 2021.
Persons who qualify for the waiver according to the GRA are those who:
- Have not previously registered with GRA
- Have registered with the Authority but
- have not submitted returns or
- in arrears for the submission of returns
- or in arrears for the payment of taxes
Deadline for the application for the waiver of penalty and interests on tax arrears ended September 30, 2021.
