GRA educates public on benefits of voluntary tax payment

Ghana Revenue Authority (GRA), has organised an educational forum in Accra to sensitise the public on the benefits of voluntary tax payment.

The forum was aimed at ensuring voluntary compliance of payers to minimise cost of collection of taxes by members of the Authority.

It discussed direct and indirect taxes as well as records keeping and registration.

Mr Anthony Dekagbe, Principal Revenue Officer of the Authority who was speaking on records keeping said a taxable person shall not destroy any book, document, accounts or record which is less than six years old without the written permission of the Commissioner General (CG).

He said among the vital things to keep record of are a VAT account to show total output tax, total input tax and the amount due or refundable for each month; relevant business and accounting records including sales and purchase journals, cash books, and ledgers.

He also advised that traders keep records of copies of all tax invoices issues, tax invoices received, documentation relating to the importation and exportation of goods and services.

He said all debit and credit notes or other documents providing evidence of an increase or decrease in the value of goods and services purchased or sold by him and such other records as the CG may specify.

“Managers of companies must display certificates given to them by the Authorities; make the Authorities aware of a new postal address or change of location and as well buy invoice to cover every sale they make,” he said.

The Principal Revenue Officer said section three of Act 870 states that estate developers who make a taxable supply of an immovable property shall account for the tax at a flat rate five per cent calculated on the value of the taxable supply.

Mr Akwasi Appiah, member of the Authority said the current threshold for VAT registration stands at GH¢ 120,000.00.

Speaking on requirements of Indirect tax registration, Mr Appiah said business managers need photocopies of Registrar General’s Department (RGD) certificate of incorporation and registration; photocopies of certificate to commence business; photocopies of RGD form ‘03’ and company’s code; VAT registration and VAT zero which is direct to premises.

He said the Authority has introduced the Tax Identification Number or new registration system where employers must re-register with the Authority or else, cease operations with the Authority.

Mr Francis K. Akoto, a Tax Consultant told the public that the CG wishes that companies pay exactly as they are required to and not more than that but that is possible only if companies keep proper records for verification.

Speaking on the need to file returns to the Authority, Mr Akoto noted that it enables the tax payer to claim personal reliefs; all allowable expenses/input VAT; capital allowances and tax over payment; and also allows them to apply for dispensations in an easier manner such as tax clearance certificates, tax credits and exemptions.

Mr Akoto said individuals and non-governmental organisations are not allowed to withhold tax payments to the CG with the exception of public institutions such as Government Agencies, Diplomatic Missions, Ministries, Educational Institutions, and State Corporations.

Mr Lawrence Adu Kusi, Chairman for the event said the Authority is mandated to mobilise revenue for national development but their objective cannot be achieved without the stakeholders, which include business minded people.

He said many people do not know that paying tax voluntarily does not only help in the development of the country but also gives the payer a number of privileges and opportunities.