Gov’t overstated 2021 total tax revenue by GHS 3.2bn – AG’s report reveals
The Auditor-General’s report for the 2021 financial year has revealed that government overstated its total tax revenue mobilised in 2021 by some GHS 3.2bn.
Total tax revenue (both indirect and direct taxes) for last year – 2021 – per data made available by statutory tax collection body, the Ghana Revenue Authority (GRA), amounted to GHS 57.4bn.
However, in government’s books, total tax revenue mobilised by the same entity (GRA) for the year 2021, was GHS 60.6bn.
According to the Auditor-General the discrepancy in reported tax revenues by the GRA and the Controller and Accountant General (CAG), was identified when the Auditor-General decided to examine revenue figures reported by both bodies.
“Direct and Indirect taxes reported by CAG amounted to GH¢27,709,806,120 and GH¢32,979,232,570 respectively in the Whole of Government Accounts compared with GRA reported tax revenue of GH¢27,603,309,699 and GH¢29,823,785,799.00 for direct and indirect taxes respectively, resulting in overstatement of tax revenue totalling GH¢3,261,943,192,” noted the AG.
| Tax Type | GRA (GH¢) | CAGD (GH¢) | Difference (GH¢) |
| Direct Tax | 27,603,309,699 | 27,709,806,120 | (106,496,421) |
| Indirect Tax | 29,823,785,799 | 32,979,232,570 | (3,155,446,771) |
| Total | 57,427,095,498 | 60,689,038,690 | (3,261,943,192) |
In its recommendation to the Controller and Accountant General (CAG), the AG advised the CAG to reconcile the discrepancies identified and state the correct figures accordingly.
“We also urged CAG to establish strong collaboration with the revenue collection agencies and introduce appropriate mechanism for regular reconciliation to ensure accurate financial reporting,” the AG added.
CAG management response
In its response to the finding made by the AG, management of CAG noted tax revenue figures (GH¢60,689,038,690) reported in the accounts were the figures submitted to the CAGD by GRA and that MDA IGF revenues included in the accounts were the revenues of the various MDAs captured at the entity level in GIFMIS and validated for inclusion in the accounts.
Meanwhile, the AG’s report further noted that internally generated funds (IGF) of the various Ministries, Departments and Agencies (MDAs) were either overstated or understated.
In view of that, the AG noted that it could not vouch for the accuracy and completeness of the revenue figures stated in the financial statements of MDAs.
| S/N | Name of MDA | Figure in Financials (GH¢) | Figures by MDAS (GH¢) | Difference (GH¢) |
| MDAs | ||||
| 1. | Ghana Revenue Authority | 45,868,297.00 | 0.00 | 45,868,297.00 |
| 2. | Judicial Service | 24,810,097.00 | 119,204,839.02 | (94,394,742.00) |
| 3. | National Pension & Regulatory Authority | 86,184,705.00 | 89,317,029.00 | (3,132,324.00) |
| 4. | Ministry of Defence | 13,132,923.00 | 27,095,648.68 | (13,962,725.00) |
| 5. | Council for Technical & Vocational Education & Training | 6,609,086.00 | 11,329,925.29 | (4,720,839.00) |
| 6. | Ghana Education Service (GES) | 89,432,024.00 | 6,522,023.46 | 82,910,000.00 |
| 7. | National Inspectorate Board | 7,096,253.00 | 18,417,080.18 | (11,320,827.00) |
| 8. | National Service Secretariat | 12,767,191.00 | 405,037.00 | 12,362,154.00 |
| 9. | Ghana Atomic Energy Commission (GAEC) | 15,173,040.00 | 15,268,147.25 | (95,107.00) |
| 10. | Gaming Board | 67,547,165.00 | 14,125,627.96 | 53,421,537.00 |
| 11. | Ghana Immigration Service | 120,308,301.00 | 22,367,403.30 | 97,940,897.00 |
| 12. | Ghana Police Service | 14,097,661.00 | 8,325,748 | 5,771,912.00 |
| 13. | Ghana Prisons Service | 213,640.00 | 128,184 | 85,456.00 |
| 14. | Minerals Commission | 282,389,298.00 | 259,931,590.00 | 22,457,708.00 |
| 15. | Ghana Railway Development Authority | 818,940.00 | 0.00 | 818,940.00 |
| 16. | Ghana Highway Authority (GHA) | 4,191,517.00 | 0.00 | 4,191,517.00 |
| 17. | Headquarters (GHA) | 60,000.00 | 0.00 | 60,000.00 |
| 18. | Ghana Freezone Board | 47,817,966.00 | 47,836,043.78 | (18,078.00) |
| 19. | Ghana Standards Board | 60,381,101.00 | 58,393,334.13 | 1,987,767.00 |
| 20. | Driver and Vehicle Licensing Authority | 260,473,976.00 | 20,735,722.14 | 239,738,254.00 |
| 21. | Registrar General’s Department | 111,589,901.00 | 6,155,854.73 | 95,434,046.00 |
