Tax Arbitration Board operational by Dec. 2007

Government has commenced procedures towards the amendment of the CEPS Management Law 1993 (Act 330), Internal Revenue Act 2000 (Act 592), Value Added Tax Act 1998 (Act 546) to introduce the Tax Arbitration Board (TAB) into the appeals process.

Already, the Ministry of Finance and Economic Planning (MOFEP) is conducting a vetting procedure for prospective members for appointments to the Tax Arbitration Board (TAB) per proposals from the Revenue Agencies Governing Board. This in addition to other formalities is expected to be concluded in the next couple of weeks to operationalise TAB before the end of 2007. .

The Tax Arbitration Board (TAB) is an initiative of the government to enhance transparency in tax administration and expedite resolution to appeals. The TAB will decide on appeals against disputed decisions of the Revenue Commissioners.

The Revenue Agencies Governing Board (RAGB) has been given the mandate to facilitate the setting up of the arbitration board.

TAB which is expected to be as efficient as the Fast Track High Courts in resolving issues is a provision that requires legal backing hence will undergo other processes when finalised before it assumes its full operations.

Indisputably, corporate organisations or individuals sometimes feel disgruntled with the manner in which revenue commissioners arbitrate on their tax concerns. The onus therefore lies with the government to create a more transparent avenue for such persons or corporate institutions to get a second hearing.

When it becomes operational, TAB will support procedures that will enable taxpayers to recover overpaid taxes, or reimbursable taxes that were not refunded, covering all transactions including exports.

Corporate bodies and individuals can utilise TAB as a channel for the recovery of losses caused by actions of revenue agencies. The system will not only boost investors’ confidence but contribute significantly to revenue collections for national development.

Unclaimed Financial Assets…final report ready next Month

Consultant charged with the responsibility of providing advice to government on the appropriate legislative and administrative arrangements necessary for the implementation of the Unclaimed Financial Assets is expected to submit a final report by the end of November 2007.

The consultant presented his initial report at a stake holder’s forum held in September 2007.

The Unclaimed Financial Assets initiative became governments’ priority after it had conducted research and realised extensive incidence of unclaimed dividends owed to shareholders by listed companies.

Unclaimed dividends are a special case of unclaimed assets that cut across a wide range of assets such as bank accounts, dividends, bond interest and redemption proceeds. Other assets include liquidation dividends, insurance proceeds and pension entitlements.

Government has already commenced actions leading to the suitable legislative and administrative processes to address this problem. The objectives of such framework will, among others address the need to establish a national framework for the management of unclaimed assets and educate the public on the procedures for tracing unclaimed assets.

The Ministry of Finance and Economic Planning (MOFEP) will manage this initiative working closely institutions such as Social Security and National Insurance Trust (SSNIT), Securities and Exchange Commission (SEC), Bank of Ghana (BoG), National Insurance Trust (NIC) and the Registrar General.