Tax Amnesty Bill: Will it benefit some big sharks? - NAPO

The minority in parliament is expressing disquiet over a bill that intends to offer tax waivers to companies who have failed to pay their taxes over a certain. According to the minority the country will potentially lose a lot of revenue if such a Bill is passed into law.

This was after the second reading of the Internal Revenue (Tax Amnesty) Bill 2011 by the Deputy Minister of Finance and Economic Planning, Fifi Kwettey on Friday.

The hearing was superintended by the 2nd Deputy Speaker, Prof. Mike Ocquaye.

According to Mr. Fifi Kwettey, “the objective of this Bill is to grant tax amnesty to some businesses who failed to file their tax returns or pay taxes as required under the Internal Revenue Act 2000 Act 592.”

He said the Bill is in five parts that encapsulates the categories of people who can benefit from the tax amnesty, the scope of the amnesty, processes application, the exercise of the powers of the Commissioner General to remit tax under section 158 of Act 592, and then the interpretations given to each situation of tax waiver.

The Chairman of the Finance Committee on the Internal Revenue (Tax Amnesty) Bill 2011, Hon. James Klutse Avedzi who seconded the Bill told the House that “the government believes that the tax amnesty provided for in the Bill will offer a number of liable tax payers an opportunity to start afresh in fulfilling their tax obligations.”

He added that this will help to widen the tax net of the country to generate more revenue for the country.

J.K. Avedzi said with the rebasing of the economy, it has become necessary to put strategies in place to widen the tax net and that one of the ways to deal with it is by offering a waiver on the penalty and interest on the taxes that have not been paid.

He said this will take away the fear harbored by some business owners who have defaulted in paying their taxes.

But reacting to the essence of the Bill, MP for Manhyia, Dr. Matthew Opoku Prempeh, said there are teething issues that the Bill does not address without which the Bill cannot be passed.

He is of the view that, in order to make such a crucial decision, there is a need to look at how much money the country will lose if this tax waiver is made operational.

“How much revenue the country will lose if this tax waiver is granted… If we have no idea about how much revenue the country is going to lose by granting this amnesty, why then do we grant this amnesty? Are there some big sharks who this Bill is going to favour?”

He said the country might potentially throw money away with the huge interests in questions as the interests on such taxes form a huge portion of the revenue.**