Major Quarcoo: Government has not introduced any new tax into the system

Accra, June 24, GNA - Major Daniel Ablorh Quarcoo (Retired), Commissioner of Internal Revenue Service (IRS), on Monday described as false rumour that government had introduced a new tax system into the country. "No new taxes have been introduced by IRS or government. The simple truth is we are trying to correct wrong application of the tax laws," he said.

Major Quarcoo was speaking at a tax education seminar organised by management of IRS for accountants and purchasing officers of Ministries, Departments and Agencies (MDA's) as well as Metropolitan, Municipal and District Assemblies (MMDA's) in Accra.

The seminar was part of IRS' efforts to continuously educate stakeholders on the tax laws.

Major Quarcoo cleared the misconception that certain allowances were not subjected to tax, stressing that all allowances were taxable including that of the tax collector, judges and doctors.

He extolled the importance of taxation saying the revenues were used for common services of public good, which include education, health, security and for supplying relief items in the event of natural disaster. Major Quarcoo observed that in 2009, the revenue agencies were able to close the deficit gap in public accounts of more than 14.7 per cent of Gross Domestic Product (GDP) saying that the agencies rose to the occasion. "Revenue agencies are charged with the responsibility of helping to close this gap and we rise to the occasion collecting 98.2 per cent of the target revenue, with direct taxes exceeding 15 per cent," he said. Major Quarcoo expressed optimism that the seminar would help the participants to understand obligations as withholding tax agents and the Act that affected the administration of Value Added Tax (VAT). "We expect participants to be better informed and better equipped for improved compliance with our tax laws and to improve our relationships with the public and to know their problems so that we could address them," he said.