The Finance Minister, Ken Ofori-Atta has indicated government’s commitment to intensify tax compliance and plug existing revenue leakages.
Presenting the Mid-Year Budget Review to Parliament on Thursday July 19, the Minister said the Ghana Revenue Authority has started rolling out major initiatives to address these tax compliance issues and to prosecute individuals and corporate institutions that would be found culpable in issues relating to tax evasion.
“Mr. Speaker, as part of efforts to improve revenue performance, we will intensify tax compliance and plug existing revenue leakages. Investigations we have undertaken show inbound leakages on goods arriving in the country, significant outstanding tax debts, suspense regimes in the area of warehousing, transit trade, and free zones, and tax audit issues such as limited coverage, low auditor productivity, and low audit yields”.
“Mr. Speaker, we are rolling out major initiatives to address these tax compliance issues. Mr. Speaker these initiatives will include prosecutions of tax evaders and corrupt tax officials, a special VAT Attack force to ensure enforcement and deepen VAT penetration from the current low levels of 11 percent, and institutional reforms at GRA”.
“Tax compliance will also be boosted by the implementation of the Common Platform for Communications Traffic Monitoring, revenue assurance, mobile money monitoring, and fraud management. The Common Platform will provide government with an accurate and comprehensive view of telecom revenues in order to verify tax compliance and to ensure the comprehensive billing
and collection of all telecom-related taxes, levies, and regulatory fees”.
The Minister listed other tax compliance measures that will be vigorously pursued by the GRA including;
-Specialised Audits (Mining, Oil and Gas, Telecommunications Services,
Transfer Pricing and High Net Worth Individuals)
-Prosecution and Enforcement Actions
-Issue Audits (Withholding Taxes, VAT, NFSL, Rent Tax)
-Broadening the Tax base (Tax Amnesty and Registration for TIN)
-VAT Monitoring and Deployment of the Electronic Fiscal Device
-Introduction of Cargo Tracking Note (CTN)
-Downstream Petroleum Monitoring
-Full implementation of the Excise Tax Stamp policy
-Use of electronic systems to identify taxpayers and Voluntary
Mark F. silveronline24 / SilverFM