Ghana-Tax Amnesty For All
The Ministry of Finance and Economic Planning has provided an opportunity for all corporate bodies and individuals who are in default of their income tax obligations to clear them without any penalty or sanction.
The six-month amnesty applies from January 1, 2006 to June 30, 2006 and fulfils a promise made by the Finance and Economic Planning Minister, Kwadwo Baah-Wiredu, when he presented this year’s Budget Statement to Parliament in November last year. It is also to enable corporate bodies and individuals to update their tax records and related obligations, as well as settle all their outstanding taxes.
A source close to the Ministry of Finance and Economic Planning, who made this known to the Daily Graphic, said “the amnesty, which is a one-off opportunity, will waive penalties and sanctions for voluntary disclosure of un-reported and/or under-reported corporate or personal income tax, Value Added Tax (VAT), Social Security and National Insurance Trust (SSNIT) contributions, duties withholding and other taxes.”
It forms part of the government’s revenue rationalisation and enhancement measures for the 2006 financial year. The reprieve is motivated by the fact that many corporate bodies and individuals who do not report or under-report their tax obligations to the various tax agencies are often discouraged from updating their tax records because they fear the sanction and penalty to be applied against them for defaulting.
The six-month window of opportunity being offered by the government will, therefore, allow all such defaulters to do the right thing without any facing sanctions or penalties. The opportunity also allows corporate entities registered in Ghana and all banks licensed under the Banking Act, 2004 (Act 673) to comply with the requirement in respect of the capitalisation of their profits by transferring money from their income surplus accounts and surpluses from the revaluation of assets to boost their stated capital, without having to pay any tax, duty or fee that were required under existing laws.
By this, the finance ministry hopes to widen the tax base, encourage corporate bodies and individuals to be good citizens and ultimately boost economic growth.
Ministry sources advised all corporate bodies and individuals to take advantage of the opportunity by contacting the local offices of the Internal Revenue Service (IRS), the Customs, Excise and Preventive Service (CEPS) and the VAT Service for further details of what they should do to update their tax obligations during the six-month amnesty period.
Tax revenue from the IRS, CEPS and VAT Service as projected by the government in this year’s Budget Statement is ¢24,186.7 billion, representing 21.5 per cent of the Gross Domestic Product (GDP).
A source close to the Ministry of Finance and Economic Planning, who made this known to the Daily Graphic, said “the amnesty, which is a one-off opportunity, will waive penalties and sanctions for voluntary disclosure of un-reported and/or under-reported corporate or personal income tax, Value Added Tax (VAT), Social Security and National Insurance Trust (SSNIT) contributions, duties withholding and other taxes.”
It forms part of the government’s revenue rationalisation and enhancement measures for the 2006 financial year. The reprieve is motivated by the fact that many corporate bodies and individuals who do not report or under-report their tax obligations to the various tax agencies are often discouraged from updating their tax records because they fear the sanction and penalty to be applied against them for defaulting.
The six-month window of opportunity being offered by the government will, therefore, allow all such defaulters to do the right thing without any facing sanctions or penalties. The opportunity also allows corporate entities registered in Ghana and all banks licensed under the Banking Act, 2004 (Act 673) to comply with the requirement in respect of the capitalisation of their profits by transferring money from their income surplus accounts and surpluses from the revaluation of assets to boost their stated capital, without having to pay any tax, duty or fee that were required under existing laws.
By this, the finance ministry hopes to widen the tax base, encourage corporate bodies and individuals to be good citizens and ultimately boost economic growth.
Ministry sources advised all corporate bodies and individuals to take advantage of the opportunity by contacting the local offices of the Internal Revenue Service (IRS), the Customs, Excise and Preventive Service (CEPS) and the VAT Service for further details of what they should do to update their tax obligations during the six-month amnesty period.
Tax revenue from the IRS, CEPS and VAT Service as projected by the government in this year’s Budget Statement is ¢24,186.7 billion, representing 21.5 per cent of the Gross Domestic Product (GDP).
