Business News of 2013-02-13

GRA to demand tax on Stars' bonuses

Players of the senior national soccer team have not been made to pay taxes. But there is a new turn on this issue. Charles Benoni Okine reports.

The Ghana Revenue Authority (GRA) is to demand up to US$400,000, being five per cent withholding tax on the bonuses paid to the players of the senior national soccer team, Black Stars at the 2013 African Cup of Nations (AFCON) which just ended in South Africa.

The taxes will also be slapped on all the various sponsorship packages that the team received prior to the tournament.

Each member of the team received US$37,500 for reaching the quarter finals and an additional US$52,000 for reaching the semifinals where they were kicked out.

All these amount excluded the minimum of US$400 a day they received as per diem.

According to the tax authority, it will request from the Ministry of Youth and Sports and the Ghana Football Association (GFA), the full details of the payments made to the team as bonuses and per diem to enable it compute the necessary taxes for payment.

A highly placed source at the GRA told the Graphic Business that the tax authority was not leaving any stone unturned to ensure that all those who deserve, by law, to pay taxes do so and the Black Stars players will not be exempted.

The resolve of the GRA this time has raised questions about why the tax authority has failed to prevail on the sports authorities to apply the law to the letter

Some civil servants the Graphic Business spoke with expressed anger at the action of the government and the GRA for their persistent refusal to tax the Black Stars.

According to some of them “the government heavily taxes our meagre salaries yet refuses to tax the bonuses of the Black Star players or any other sportsmen and women who feature in international tournaments”.

This, they described as unfortunate and unacceptable and called on the GRA to pursue the authorities to do the right thing just the same way they do to the civil servants and any other taxpayers in the country.

There were others who also argued that with the GRA now demanding from people to pay taxes on the gifts they receive, the tax authority, therefore, has no excuse to refuse to demand taxes on those who sponsor the Black Stars openly.

“The tax authorities must be fair to all and stop discriminating as far as tax collection is concerned”, they said.

The GRA has made such pledges in the past but has consistently refused to collect taxes from the team.

The GRA is also noted for going after sources they can easily target to collect taxes and those who refuse to honour their tax obligations are made to face distress action.