"Prof. Gatsi calls for regular reports on tax-exempt companies"

" Prof. Gatsi calls for regular reports on tax-exempt companies \r\n\r\nProf. John Gatsi, Dean of the University of Cape Coast Business School, has advocated for the regular publication of reports on companies that receive tax exemptions.\r\n\r\nHe stresses the importance of an objective mechanism to determine which companies qualify for such exemptions and a robust monitoring system to ensure these companies contribute to national benefits such as employment, economic growth, technology transfers, and revenue generation.\r\n\r\nProf. Gatsi believes that periodic reporting by these companies would enable the state to enforce compliance and impose sanctions if necessary.\r\n\r\nHe warns that Parliament's practice of granting tax exemptions without proper monitoring could foster corruption and potentially involve political party sponsorships.\r\n\r\nFurthermore, Prof. Gatsi argues that the debate on tax exemptions should focus on making the decision to seek such exemptions a costly one, thereby ensuring only genuinely deserving companies apply.\r\n \r\n \"There must be an objective mechanism to determine the qualification of companies for tax exemption and a monitoring mechanism to assure the country that employment benefits, contribution to growth, technology transfers and contribution to revenue are being delivered periodically by GRA and report to Parliament. \r\n \r\n \"Without these mechanisms in place, Parliament may not be acting in the interest of the country. Tax exemption is an upfront investment in a company to serve the strategic interest of the country the state, thus a periodic report is the minimum that Parliament should ask for. The report must trigger sanctions for non-compliance. \r\n \r\n \r\n We know that there is corruption in the exemption process and there could be political party sponsorship embedded in the entire process. \r\n \r\n \r\n \r\n \"The debate about tax exemption should be focused on how to make the choice to request for tax exemption very expensive. Parliament may be engaging in unhealthy habits without a monitoring mechanism,\" argued Prof Gatsi. \r\n \r\n \r\n His assertion follows the ongoing debate and the accusation against the Minority Caucus in Parliament by the Majority Caucus in Parliament for deliberately impeding the provision of some $335m in tax exemptions to 42 companies under the\u00a0One District, One Factory (1D1F) programme. \r\n \r\n \r\n\r\nIn 2021, the government requested Parliament to approve tax exemptions for various businesses participating in the 1D1F industrialization initiative, designed to signal to the international investor community that Ghana is a favourable environment for business.\r\n\r\nHowever, the process has been impeded by extensive delays, particularly due to demands for further scrutiny by members of the Minority caucus.\r\n\r\nMinority Leader Cassiel Ato Forson has opposed advancing the exemptions list, citing irregularities with some companies and their requested tax exemptions. The Minority has also rejected a proposal to present 15 companies deemed free of irregularities to Parliament, leaving the Majority Leader frustrated.\r\n\r\nThe prolonged delay\u2014now in its fourth year\u2014raises concerns about an intentional effort to obstruct the government\u2019s agenda.\r\n\r\n "

"Prof. Gatsi calls for regular reports on tax-exempt companies"

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