GRA to expand tax compliance measures to raise needed revenue for development

The Ghana Revenue Authority (GRA) says it will extend its tax compliance measures to raise the needed revenue for development.

The Authority used a test-purchase approach to determine tax infractions by companies or customers.

Companies, which did not comply, are required to pay an amount of GHC50,000 or be prosecuted.

Extending its tax operations, the Authority will check for Personal Tax Income, Pay As You Earn (PAYE), Tax, Tax Stamps and Affixed Stamps on products.

Customers were to comply with the Section 41 of Value Added Tax (VAT) Act, which requires them to issue the tax invoice only at all times.

The GRA taskforce on Thursday embarked on an operation on tax compliance and invited eight shop operators, and arrested two hotel managers.

The hotels and shops visited were, Golden Key Hotel, Royal Cockpit Hotel, Kingsbridge Hotel, Floresent Boutique, Look & Pick Company Limited, Safcal Lodge, Adez Mart, Kidis B Mother Care, Mandamond and Les Fam Company Limited, all located in the Ayawaso West Municipality.

Some of these companies were not issuing the commissioner’s tax invoice while others were not registered for VAT.

Mr Joseph Annan, Area Enforcement Manager of Ghana Revenue Authority (GRA) in charge of Accra Central, in an interview, said it was an infringement on the tax laws if businesses failed to issue the VAT when they were registered with the Authority.

He said the two arrested culprits would be taken to the Customs Office Division of the GRA in Accra to be examined and established assessment for a pre-emptive fine of GHC50,000, while eight shop owners were invited to the GRA head office.

He said the shop owners had clearly violated the regulations of VAT, and added that the Authority had expanded its scope by adding general tax compliance test.

“It looks like we have more grounds to cover because a lot more businesses are not registered and those who are registered are doing selective insurance of VAT invoice.”

“What it means is that we have to do a lot more complaince checks,” he said.

Mr Annan said to achieve the target of full compliance, all tax types would be checked depending on your business operations.

“We may come to your shop on the strength of test purchase but we will look at other tax types that you are required to pay to ensure full compliance,” he added.

He advised the public to demand VAT invoices while urging tax payers to comply with the law or face prosecution.