GRA accused of using “mafia-like” tactics to collect taxes
The actions of the Ghana Revenue Authority (GRA) have recently come under fire from the Importers and Exporters Association of Ghana (IEAG) for their alleged use of “mafia-like tactics” in their efforts to collect taxes from businesses. The IEAG claims that the GRA has been imposing contentious back tax claims on businesses in the country without due diligence, which has caused many businesses to suffer financially.
The most recent victim of these actions is businessman and politician Ken Agyapong, who claims that the GRA has deliberately targeted his business by issuing a contentious claim of back taxes. This is just one of many cases of businesses being hounded out of business by the GRA’s tax claims, according to the IEAG.
While the GRA claims that these tax claims are necessary for revenue mobilization and meeting revenue targets, the IEAG argues that these actions may do more harm than good. Multinational companies such as Goldfields, Tullow Oil, and Kosmos Energy have all disputed similar back tax claims made against them by the Authority, highlighting the need for the GRA to exercise caution and fairness in its revenue mobilization efforts.
Furthermore, the IEAG has criticized the GRA’s recent assessment of meeting its target in the first two months of 2023, calling it “pre-ejaculation.” The association argues that it is illogical to use revenue mobilized within the first two months of a calendar year to assess the GRA’s ability to meet its yearly target.
The actions of the GRA could have serious implications for the economy as a whole, especially as many businesses are already struggling due to the effects of the COVID-19 pandemic. The IEAG is calling on the acting Commissioner of the GRA to prioritize helping sustain businesses rather than imposing draconian taxes.
It is essential that the GRA acts in a fair and transparent manner when imposing taxes on businesses. This will not only help to ensure that businesses are not unfairly targeted but will also promote investor confidence in the country. The government should also consider providing support to businesses during these difficult times to ensure their survival and contribute to the growth of the economy.
The IEAG’s concerns regarding the actions of the GRA highlight the need for the government to ensure that taxes are collected in a fair and transparent manner. While revenue mobilization is important, it should not be done at the expense of businesses and the economy as a whole. The government should take steps to support businesses during these challenging times, and the GRA should exercise caution and fairness in its efforts to collect taxes.
