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The Internal Revenue Authority (IRS) last week Wednesday organised a tax education seminar to sensitize professionals and update tax payers on the charges of the tax law on the theme: ‘Dialoguing with professionals to improve compliance with the laws’ in Accra.
The seminar was aimed at educating the professionals and tax payers on how to assess their tax systems effectively, and also to know their various rights and obligations including other regulations concerning taxation in Ghana.
In a welcome address by Mr. James Anaman, the acting Head of Operations of the Domestic Tax Revenue Division on behalf of Maj. D. Ablorh Quarcoo, the Commissioner of the Domestic Tax Revenue Division, revealed that many professionals have over the years not complied with the tax laws.
Mr. Anaman continued that the professionals have failed to honor their tax obligations as expected of them by the Ghana Revenue Authority (GRA) and therefore it is in this light that the seminar is being held.
“Over the years, many professionals have not honored their tax obligations as expect of them, as there is always a problem with their Vat returns and others, this however forms part of the reason that we are organizing this seminar to educate them more on the issues concerning tax,” he observed.
He noted that in 2006, a Legislative Instrument (LI) introduced a new tax rate to replace the old one which existed since 1965 which include the reduction of the personal tax rate to enhance the tax payer’s standard of living.
Briefing the professionals at the seminar, the Chief Inspector of Taxes MR. F.E.K Akoto stated that it is on the part of GRA to combat tax fraud and evasion whereas to cooperate with other revenue collection agencies in the assessment and revenue collection.
According to him, it is the right of a tax payer to enjoy the above function as a right, adding that they should have fair and transparent tax transactions.
He said tax payers again have the right to courtesy and consideration, make objections and appeal, claim personal tax reliefs and the right to privacy and confidentiality.
“The tax payers must enjoy every right that is allocated to them, they are our clients and are therefore entitled to have fair and transparent taxation in order for us to improve the cordial relationship that exist between us,” he urged.
Mr. Akoto said again that GRA is to promote tax compliance and education and advise district assemblies technically on the assessment and collection of revenue.
He observed that taxes are not voluntary payments but an enforced contribution imposed on an income earner.
He added that the funds raised in taxation are used to support the government in diverse areas of development such as the provision of hospitals, waste management, Water, Energy and the Ghana Education Trust (GET Fund) amongst others.
Touching on the obligations, Mr. Akoto said that aside the rights enjoyed by tax payers, they are also obligated to keep clear records of their transaction with revenue agencies.
Also they should report correctly all their income earnings amongst others to the commissioner and to register their businesses with the revenue authorities.
The Acting Head of Training Vat-Domestic Tax Revenue Division of GRA Mr. Kwesi Ackah emphasized that Value Added Tax (VAT) does not collapse business as most people have perceived but rather it makes the business grow.
He however urged all professionals and tax payers to be honest in the payment of their taxes and to be compliant with the tax laws.
STORY: EMELIA N. A. ARYEE