The Ghana Revenue Authority (GRA) has promised to go all out in pursuing tax defaulters and persons who infringe on the country’s tax laws.
According to the Acting Commissioner-General of the GRA, Rev. Ammishaddai Owusu-Amoah, a dedicated and special court for tax cases will be launched by the GRA to prosecute tax defaulters.
The move as announced by the Acting Commissioner-General, forms part of the Authority’s 2021 strategies for meeting its provisional tax revenue target of $10.3 billion (Ghs 60 billion) for this year which is a 32.3 percent increase over the 2020 actual collection of $7.78 billion (Ghs 45.338 billion).
“Last year our operational officers were trained in evidence gathering and identifying cases for prosecution. With these structures in place we would like to sound a strong word of caution to tax defaulters and persons who indulge in fraudulent tax practices that they will be prosecuted expeditiously according to the tax laws,” said the Commissioner-General.
In addition, a High Net Worth Unit has been established by the GRA.
The Unit has been established to deal with tax affairs of high net worth individuals in the country. This category of persons include; musicians, actors and actresses, pastors, international footballers etcetera. The Unit’s mandate is to identify, locate, profile and assess these high net worth persons to tax them.
Speaking further, the Commissioner-General noted that his outfit is collaborating with the National Identification Authority and other relevant stakeholders to ensure that effective April 1, 2021, the Ghana Card Unique Identification Number of the National Identification Authority replaces the Taxpayer Identification Number (TIN).
“Taxpayers will therefore be required to use the Ghana Card Identity Number for tax purposes as well. This replacement of identification will enable the organisations share important data and also help identify and rope in eligible taxpayers, especially in the informal sector. Taxpayers will also not spend time in acquiring TINs as they will use the Ghana Card Identity Number for tax purposes,” stated Rev Ammishaddai Owusu-Amoah.
Below are the GRA’s 2021 strategies to meet its Ghs 60 billion tax revenue target:
- Introduction of New Excise Tax Stamps – From the 1st of January, 2021, we introduced new excise tax stamps with enhanced security features which are difficult to duplicate. The Authority has adopted strict measures for the distribution and monitoring of the stamps to ensure that only recognized manufacturers and importers of excisable products receive them and that they are all duly accounted for. I must however add that the old and new stamps will both be in circulation until the old stamps are out of stock.
- TIN/Ghana Card Replacement – The GRA in collaboration with the National Identification Authority and other relevant stakeholders are working to ensure that with effect from 1st April, 2021, the Ghana card Unique Identification Number of the National Identification Authority replaces the Taxpayer Identification Number (TIN).
- Taxpayers will therefore be required to use the Ghana Card Identity Number for tax purposes as well. This replacement of identification will enable the organisations share important data and also help identify and rope in eligible taxpayers, especially in the informal sector. Taxpayers will also not spend time in acquiring TINs as they will use the Ghana Card Identity Number for tax purposes.
- E-Commence – There will be vigorous efforts to tax players in the e-commerce market. This sector has been a challenge over the years for the Authority, but this year, we are providing staff with the requisite training to enable them identify players in the sector for tax purposes.
- Restructuring of Domestic Tax Revenue Division – The Domestic Tax Revenue Division (DTRD) commenced the nationwide restructuring of its offices last year. This exercise is expected to be fully completed in the 1st quarter of 2021.
- The aim of the exercise is to create offices not on the basis of turnover as it was previously but rather based on jurisdiction. DTRD Offices have been demarcated into two main wings namely; Area Offices which will perform mainly administrative, centralised audit and enforcement functions; and Taxpayer Service Centres (TSCs) which will carry out all other functions of DTRD namely; registration, receiving of returns, complaints, enquiries and payments, compliance, debt management and tax education. This review will bring our services closer to our taxpayers for improved compliance and service delivery.
- Deployment of Information Technology Tools – The GRA will continue with its digitization effort. The next phases of IT systems that were deployed in 2020 such as ITaPS and ICUMS will be rolled out to make it more convenient for taxpayers to honour their tax obligations and also prevent tax evasion and avoidance.
- To help in building the capacity of staff in the area of Information Communication Technology (ICT), one of our donor partners KFW is helping with the construction of an IT Training Institute. The contractor is currently on site, and construction will start soon.
- The African Continental Free Trade Area (AfCFTA) – AfCFTA through ICUMS commenced on the 18th of January, 2021. Per this initiative Customs will implement six of the agreements namely; Tariffs schedule, Rules of Origin, Customs Cooperation & Mutual Administration Assistance, Trade facilitation, Non-Tariff Barriers and Transit. Although this may not have a direct revenue benefit, it is expected to create job opportunities through increased trade.
- Tax Education – The Authority will undertake increased tax education exercises to help inform taxpayers on their rights and obligations, processes and procedures, among others, all aimed at ensuring voluntary tax compliance.
- In the light of COVID-19, virtual tax education will also be used to complement the other modes of education. To complement our tax education efforts, we will also focus on excellent customer care. Our aim is to delight our customers even as they discharge their civic responsibilities.
- Prosecution – This year GRA is going all out to pursue tax defaulters and persons who infringe on tax laws. We will launch a dedicated and special court for tax cases, as well as recruit more professionals to join our Prosecutions Unit. In addition will be organizing workshops for judges on tax laws. Last year our operational officers were trained in evidence gathering and identifying cases for prosecution. With these structures in place we would like to sound a strong word of caution to tax defaulters and persons who indulge in fraudulent tax practices that they will be prosecuted expeditiously according to the tax laws. We hope we can count on you to publicise these cases.
- High Net Worth Unit – Our High Net Worth Unit has also been established to deal with the tax affairs of High Net Worth individuals in the country. This category of persons includes musicians, actors and actresses, pastors, international footballers. This Unit’s mandate is to identify, locate, profile and assess these high net worth persons to tax. Ultimately, we need all persons who should pay tax to contribute their quota to the national kitty.
- Data Analytics- We have engaged with various government and private institutions to obtain data on activities on taxable persons. We have also employed Data Scientists and Data Analytic officers. All these will enable us analyse and compare data from other institutions to uncover non compliant Taxpayers.
