Just In : Ghanaians To Pay Taxes On Gifts . . . .Read More

Loved ones receive gifts on particular occasions. They usually make the recipient and giver happy.

Money or goods. Ghana has many gift shops.

Gifts can be clothes, toiletries, groceries, toys, electronics, vehicles, even residences, depending on the giver and receiver.

They may save your life or money.

Gifts are unpaid.

It shows appreciation and love. In many religions, gift-giving is the most fulfilling.

Biblically, giving is better than receiving.

The Qur'an emphasizes almsgiving.

Dictionary.com defines a gift as a voluntary, unpaid show of preference, honor, or support.

Imagine taxing your gifts. Ghana's gift tax is a tax, regardless of your opinion.

Taxes are necessary contributions to state revenue levied by the government on employees' pay and corporate earnings or applied to particular products, services, and transactions.

The law
Taxable Gifts in Ghana include permanent or temporary buildings, land, shares, bonds, and other securities, money, including foreign currency, business and business assets, and any means of transportation (land, sea, or air).

Other qualifying goods or possessions, a portion or any right or interest in, to, or over any of the above assets, and an asset or benefit situated in Ghana or outside Ghana, received by a resident person as a gift, are also taxable gifts under the law.

Any monetary or non-monetary compensation to achieve an act or omission for a resident is included.

Gifts over GH50 must be taxed 15% under Internal Revenue Act 592.

The gift's current market worth would determine its value. The gift tax is due within 30 days.

The Ghana Revenue Authority (GRA) stated that all gifts are taxable income.

a religious organization that uses the gift for the public or a section of the public or for charitable purposes.

Implementation
The GRA may have issues with the law on paper, but its implementation generates more questions than answers.

The public and revenue collection power are questioned.

How much tax do I owe on a basket of snails from a farmer friend in a cheaper village?

The authority says it's hard to tell who gives gifts when.

A year ago, GRA's acting Deputy Commissioner for Communications and Corporate Affairs, Kwasi Oppong-Damoah, told the media that encouraging gift declaration was vital.

He said identifying the donor is difficult, even though others think the giver should pay for convenience.

The limited public opinion interviews I did may paint the gift tax bill as inefficient and unnecessary.

People think
Poor pay. Government wants taxes from gifts. Ghana won't work. Ministers and public officials have never paid gift tax. Do they pay taxes on sheep, goats, kente, and food they buy in communities?" Boye requested.

“Really! No idea. Origin of this law? I'll avoid gift tax. I won't voluntarily tax donations. I don't think there's a way to track gifts. I doubt such laws apply.

I understand the gift tax. Recently discovered. It's unsustainable. Taxing bribes is simple. A teacher and media practitioner said, "I don't think it will work, but if it does, it should begin at the top; those at the top are the ones who receive gifts worthy of taxation."

It was rejected by all ten people I asked.

It's hardly surprising that Mr. Kofi Owusu Afriyie of the GRA's Tax Audit Unit in Cape Coast discovered that no one had voluntarily paid gift tax in his 15 years with the authority.

The GRA expected gift tax would be paid freely.

GRA will educate Ghanaians on the importance of all taxes to socioeconomic and infrastructure development until they understand the need to pay tax on gifts.