Ghana Revenue Authority

Last updated
Ghana Revenue Authority
Ghana Revenue Authority logo (new).jpg
Ghana Revenue Authority 0537161294 (GRA)

Large Taxpayer Office, VAT House Ring Road Central
Agency overview
Formed2009;15 years ago (2009)
Preceding agencies
HeadquartersOff Starlets' 91 Road, near Accra Sports Stadium
5°33′06″N0°11′31″W / 5.55153°N 0.19194°W / 5.55153; -0.19194
MottoIntegrity, Fairness and Service
Agency executives
  • Ms. Julie Essiam, AG. Commissioner – General
  • Ms. Pearl Nana Ama Darko, AG. Commissioner – Support Service Division
  • Brigadier General Ziblim Bawa Ayorrogo, AG. Commissioner – Customs Division
  • Mr. Edward Gyambrah, Officer-in-Charge, Domestic Tax Revenue Division
Parent agency Ministry of Finance
Website www.gra.gov.gh

The Ghana Revenue Authority (GRA) is the Ghana administration charged with the task of assessing, collecting and accounting for tax revenue in Ghana. [1] [2]

Contents

As part of efforts to improve compliance, the Authority is required to assist taxpayers to understand and meet their tax obligations by providing robust and comprehensive advice.

Since its inception the GRA has integrated the four revenue institutions namely the Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS), the Value Added Tax Service (VATS) and the Revenue Agencies Governing Board (RAGB). [1]

History

In December 2009, the four revenue agencies that is Customer Electronic Payment Systems (CEPS), Internal Revenue Service (IRS), Value Added Tax (VAT) Service and Revenue Agencies Governing Board(RAGB) Secretariat were merged in accordance with the Ghana Revenue Authority Act, 2009 (Act 791). [3] [4] GRA thus replaces the revenue agencies in the administration of taxes and customs duties in the country. [3] [5]

The establishment of the GRA is part of the reforms in revenue administration of tax collection in Ghana which began in the mid-eighties when CEPS and IRS were taken out of the Civil Service and made semi-autonomous and self-accounting public sector institutions with separate boards. The National Revenue Secretariat (NRS) was set up to formulate revenue policies, manage tax reforms and supervise the activities of CEPS and IRS. [6]

In 1998, the VAT Service was established to administer VAT and other consumption taxes. RAGB also began operations in 2001 to supervise and monitor the operations of the revenue agencies. [6] In 2002, the Taxpayer Identification Number (TIN) was introduced to enhance information interchange and risk profiling. Then in 2004, the Large Taxpayer Unit (LTU) was set up to operate on functional lines as a pilot programme for the future integration of tax administration in Ghana as well as to serve the needs of large taxpayers as a one-stop-shop operation. [1]

It was envisaged that the integration of the revenue agencies will bring the following benefits to taxpayers and the revenue administration.

The Ghana Revenue Authority announced in April 2022 that it will begin collecting value added taxes (VAT) from non-resident companies or persons that conduct business transactions in Ghana via the electronic transmission of data over communications networks like the internet. [8]

Organizational structure

A nine-member governing board of directors, consisting of both public and private sector experts, makes policy decisions to be implemented by GRA Management. The Board also makes recommendations to the Minister of Finance on tax policy, reform and legislation.

The chairman of the Board as well as the chief executive officer of the Authority called the Commissioner-General are appointed by the President of the Republic of Ghana https://gra.gov.gh/customs/. The Authority has three main divisions, namely Customs Division (CD) which are the customs, Domestic Tax Revenue Division (DTRD) which include The Audits, The Tax Force, etc. and Support Services Division (SSD) which are the Administration, IT, Account, etc. which are all headed by [4]

Functions

The Ghana Revenue Authority has been charged to perform amongst others, the following functions as enacted by Act 791:

GRA informant award scheme

The Ghana Revenue Authority is reminding the public about their informant award scheme, where individuals can receive rewards for providing information that aids in tax recovery. [12] [13]

The information should reveal various illicit activities, including tax underreporting, smuggling or diversion of goods, invoice manipulation, failure to provide VAT invoices, record tampering/fabrication, failure to register for taxes, and similar violations. [12]

In December 2022, Through the effective implementation of its Informant Reward Scheme (IRS), the Ghana Revenue Authority (GRA) managed to recover more than $93 million from multinational and local companies operating within the country. [13] [14]

Tax policy environment

Tax revenue generation is based on clearly defined tax policy measures. GRA remains a key partner of the Tax Policy Unit of the Ministry of Finance and Economic Planning (Ghana). This collaboration which is complemented by tapping the expertise of stakeholders drawn across several economic and social sectors is geared toward the formulation of effective and sustainable policies designed to enhance tax revenue collection by the Authority. [15]

Taxpayers

Taxpayers registered with GRA are segmented into three identifiable groups that is Large, Medium and Small based on defined criteria. Taxpayers with an annual turnover of over GH¢5 million are classified as large taxpayers. [16] This category also includes specialist industries irrespective of their turnover. These are upstream and midstream petroleum companies, banking institutions, insurance companies, mining companies and quarries, and members of groups of companies where at least one member qualifies as a large taxpayer.

Taxpayers within the turnover bracket of GH¢90,000 up to GH¢5 million are categorized as medium taxpayers, while those with an annual turnover of less than GH¢90,000 are classified as small taxpayers. [16]

The GRA announced that from 1st April, 2022, it will no longer accept manual tax returns from specified group of taxpayers but instead, returns will have to be filed through the taxpayers portal from the effective date. [17]

Tax Types

There are various taxes that taxpayers are required to pay. These are grouped into two main headings under the Domestic Tax types. These are the Individual Tax Types and the Business Tax Types.

Individual Tax Types

These are

Business Tax Types

These are

Others

Importers and Exporter are expected to pay customs duty at the various ports and centres

Introduction of Uni-Pass clearance system

On 21 February 2020, personnel and logistics were distributed by the Customs Division, to test the Uni-Pass clearance system at the Takoradi Port. [18] [16] [19] [20] This system handles all paperwork and payments at one point, an improvement on the previous system, which processed all the operations in several offices. [21] [22] [23] This was after its successful implementation at the Aflao Collection Point in the Volta Region. [24]

Amendments of tax laws

The Ghana Revenue Authority has announced the implementation of amendments to several tax laws, notifying the general public that these changes are now in effect. [25] [26] [27]

The GRA has acknowledged that businesses have been given ample time to make necessary system adjustments ahead of tax implementation since the law was enacted. [27]

Electronic Transfer Levy (Amendment) Act 2022 (Act 1089)

  1. On electronic transactions subject to the Act's charges, the Electronic Transfer Levy (E-Levy) rate has been lowered to 1%.
  2. The way, when, and location that E-levy returns are filed will be decided by the Commissioner-General.
  3. Within 24 hours of charging the amount, the levy must be remitted to the Commissioner-General.
  4. The individual must be enrolled with the GRA to meet the Act's requirements for agent eligibility.
  1. Revenue Administration (Amendment) Act, 2022 (Act 1086)
  1. The Act grants the Commissioner-General the authority to set up a monitoring system to confirm the real revenue received by a taxpayer to calculate taxes due.
  2. In addition to other penalties under the Act, it imposes a penalty of 5% of yearly gross revenue on anyone who refuses to give the Commissioner-General or a tax officer physical access to their system, infrastructure, or network node.
  3. With regard to the production of or access to a document, this amendment supersedes existing provisions in other enactments that deal with secrecy, privilege, or the public interest.
  4. According to the Act, anybody who realizes an asset or a liability must also file a separate return.
  1. Value Added Tax (Amendment) No. 2 Act, 2022 (Act 1087)
  1. Value Added Tax (VAT) rates rising from 12.5% to 15%
  2. Examining the transitional measures to enable the Commissioner-General to choose the appropriate circumstances in which a taxable person should make use of the Certified Invoicing System (E-VAT).
  3. For non-compliance, it also offers further administrative sanctions.
  4. To exclude gambling, gaming, and other chance-based activities from VAT.
  5. The abolition of VAT exemptions on imported textbooks, imported newspapers, architectural plans and similar designs, drawings, scientific and technical works, periodicals, magazines, trade catalogues, price lists, greeting cards, almanacs, calendars, diaries, stationery, and other printed matter. All amendments will come into effect on 21 January, 2023 [27]

Partnerships

Myassembly.gov.gh

From the year 2023, GRA partnered with the Metropolitan, Municipal and District Assemblies (MMDAs) in the collection of property rates in the country using a Unified Common Property Rate Platform. This Unified Common Property Rate Platform also known as MYASSEMBLY.GOV.GH [28] is a complete end-to-end district revenue collection and administration platform designed to enhance the collection and accounting of property rates. [29] [30]

The partnership will see the tax authority receive 30 percent of the property revenue mobilization to cover for systems, logistics and other financial overheads accrued and will credit the 70 percent to the respective MMDAs. [31] This new partnership seeks to raise not less than 1.77 billion Ghana Cedis yearly.

Aside conducting training for the various assembly staff across the country, [32] a total of 5000 Technical Support Officers (TSOs) and Client Support Officers (CSOs) were deployed in the late first quarter of the year 2023 by the GRA to assist property rate payers in the various MMDAs across the country to register and pay their property rates. [31]

Petition against GRA over assembly.gov.gh activities

In July 2023, the Chamber of Local Governance (ChaLoG) petitioned the Economic and Organized Crime Office (EOCO) to investigate what it termed an illegal lodgment of government funds into the account of a private company—Digital City Solutions Limited (DCS). ChaLoG alleged that GRA is being used a decoy by DCS for the collection of property rate tax. They maintained such an act was in contravention of the Financial Administration Act, 2003 (ACT 654) and the Financial Management Regulations, 2019 (L.I 2378). [33] [34]

ChaLoG stated categorically that their investigation "revealed that the myassembly.gov.gh payment platform account is on the contrary, being managed by DCS and not GRA". [35]

The Leadership

Commissioners

Names [36] PositionDate
Ms. Julie EssiamCommissioner-General2024 – date
Mr. Edward GyambrahDomestic Tax and Revenue Division2023 – date
Brigadier General Ziblim Bawa AyorrogoCommissioner Customs Division2024 – date
Ms. Pearl Nana Ama DarkoCommissioner Support Services Division2024 – date

Governing Board

Names [36] Position
Hon. Joe Ghartey (MP)Chairman of the Governing Board
Ms. Julie EssiamMember
Madam Susana AkomeaMember
Hon. Okyere Baafi (MP)Member
Mrs. Elsie Addo AwadziMember
Mr. Kwabena Abankwah YeboahMember
Mrs. Araba BosomtweMember
Hon. Alhassan Abdakkah Iddi (MP)Member
Dr. Alex AmpaabengMember

Related Research Articles

<span class="mw-page-title-main">Taxation in the United States</span> United States tax codes

The United States has separate federal, state, and local governments with taxes imposed at each of these levels. Taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees. In 2020, taxes collected by federal, state, and local governments amounted to 25.5% of GDP, below the OECD average of 33.5% of GDP.

<span class="mw-page-title-main">Taxation in the United Kingdom</span> United Kingdom tax codes

In the United Kingdom, taxation may involve payments to at least three different levels of government: central government, devolved governments and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England, Council Tax and increasingly from fees and charges such as those for on-street parking. In the fiscal year 2014–15, total government revenue was forecast to be £648 billion, or 37.7 per cent of GDP, with net taxes and National Insurance contributions standing at £606 billion.

<span class="mw-page-title-main">Income tax in the United States</span> Form of taxation in the United States

The United States federal government and most state governments impose an income tax. They are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed, but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. Most business expenses are deductible. Individuals may deduct certain personal expenses, including home mortgage interest, state taxes, contributions to charity, and some other items. Some deductions are subject to limits, and an Alternative Minimum Tax (AMT) applies at the federal and some state levels.

<span class="mw-page-title-main">Internal Revenue Service Restructuring and Reform Act of 1998</span>

The Internal Revenue Service Restructuring and Reform Act of 1998, also known as Taxpayer Bill of Rights III, resulted from hearings held by the United States Congress in 1996 and 1997. The Act included numerous amendments to the Internal Revenue Code of 1986. The bill was passed in the Senate unanimously, and was seen as a major reform of the Internal Revenue Service.

<span class="mw-page-title-main">Indian Revenue Service</span> Indian taxation agency

The Indian Revenue Service, often abbreviated as IRS, is a civil service that is primarily responsible for collecting and administering direct and indirect taxes. As a central civil service under Group A of the executive branch of the Government of India, it functions under the Department of Revenue of the Ministry of Finance and is under the administrative direction of the Revenue Secretary and the ministerial command of the Minister of Finance.

Taxation in Iran is levied and collected by the Iranian National Tax Administration under the Ministry of Finance and Economic Affairs of the Government of Iran. In 2008, about 55% of the government's budget came from oil and natural gas revenues, the rest from taxes and fees. An estimated 50% of Iran's GDP was exempt from taxes in FY 2004. There are virtually millions of people who do not pay taxes in Iran and hence operate outside the formal economy. The fiscal year begins on March 21 and ends on March 20 of the next year.

The Tanzania Revenue Authority (TRA) is the government agency of Tanzania, charged with the responsibility of managing the assessment, collection and accounting of all central government revenue in Tanzania.

This is a list of the maximum potential tax rates around Europe for certain income brackets. It is focused on three types of taxes: corporate, individual, and value added taxes (VAT). It is not intended to represent the true tax burden to either the corporation or the individual in the listed country.

Taxes provide the most important revenue source for the Government of the People's Republic of China. Tax is a key component of macro-economic policy, and greatly affects China's economic and social development. With the changes made since the 1994 tax reform, China has sought to set up a streamlined tax system geared to a socialist market economy.

Due to the absence of the tax code in Argentina, the tax regulation takes place in accordance with separate laws, which, in turn, are supplemented by provisions of normative acts adopted by the executive authorities. The powers of the executive authority include levying a tax on profits, property and added value throughout the national territory. In Argentina, the tax policy is implemented by the Federal Administration of Public Revenue, which is subordinate to the Ministry of Economy. The Federal Administration of Public Revenues (AFIP) is an independent service, which includes: the General Tax Administration, the General Customs Office and the General Directorate for Social Security. AFIP establishes the relevant legal norms for the calculation, payment and administration of taxes:

<span class="mw-page-title-main">Ministry of Finance and Economic Planning (Ghana)</span> Government ministry in Ghana

The Ministry of Finance and Economic Planning is the government ministry responsible for the economic and monetary health of Ghana. The Ministry is involved with economic planning, fiscal policy, national accounting, the national budget, and creating an environment for investment and growth.

<span class="mw-page-title-main">Tanzania Revenue Authority</span> Government agency of Tanzania

The Tanzania Revenue Authority (TRA) is a semi-autonomous Government Agency of the United Republic of Tanzania. It was established by the Tanzania Revenue Authority Act, CAP. 339 in 1995 and started its operations on the 1st of July 1996. It is headed by the Commissioner General. The Current Commissioner General is Alphayo Kidata

Tax protesters in the United States advance a number of administrative arguments asserting that the assessment and collection of the federal income tax violates regulations enacted by responsible agencies –primarily the Internal Revenue Service (IRS)– tasked with carrying out the statutes enacted by the United States Congress and signed into law by the President. Such arguments generally include claims that the administrative agency fails to create a duty to pay taxes, or that its operation conflicts with some other law, or that the agency is not authorized by statute to assess or collect income taxes, to seize assets to satisfy tax claims, or to penalize persons who fail to file a return or pay the tax.

Taxation in Norway is levied by the central government, the county municipality and the municipality. In 2012 the total tax revenue was 42.2% of the gross domestic product (GDP). Many direct and indirect taxes exist. The most important taxes – in terms of revenue – are VAT, income tax in the petroleum sector, employers' social security contributions and tax on "ordinary income" for persons. Most direct taxes are collected by the Norwegian Tax Administration and most indirect taxes are collected by the Norwegian Customs and Excise Authorities.

<span class="mw-page-title-main">Taxation in South Africa</span>

Taxation may involve payments to a minimum of two different levels of government: central government through SARS or to local government. Prior to 2001 the South African tax system was "source-based", where in income is taxed in the country where it originates. Since January 2001, the tax system was changed to "residence-based" wherein taxpayers residing in South Africa are taxed on their income irrespective of its source. Non residents are only subject to domestic taxes.

The United Arab Emirates is a federation of seven Emirates, with autonomous federal and local governments. The UAE has historically been a low-tax jurisdiction. The federal government and local governments are entitled to levy taxes on citizens and companies. The federal government currently levies a value added tax, corporate income tax, and excise taxes. Some emirates levy property, transfer, excise and tourism taxes. Some emirates also charge corporate taxes on oil companies and foreign banks.

The tax system of the Czech Republic is similar in its main features to the systems of developed and especially European countries.

<span class="mw-page-title-main">Value-added tax</span> Form of consumption tax

A value-added tax is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared with, a sales tax. VAT is an indirect tax, because the consumer who ultimately bears the burden of the tax is not the entity that pays it. Specific goods and services are typically exempted in various jurisdictions.

Taxation is an important part in the Turkish economy. Turkey has a 41.65% tax to GDP ratio. Most of the taxes are levied by central government. However some specific taxes are levied by municipalities, with the amount determined by centrally issued legislation. Municipalities have no authority to make their own tax laws.

<span class="mw-page-title-main">Indian Revenue Service (Custom and Indirect Taxes)</span> Central Civil Service under Central Board of Indirect Taxes and Customs

The Indian Revenue Service , often abbreviated to IRS or IRS , now called IRS(C&IT) is a part of central civil service of the Government of India. It functions under the Department of Revenue of the Ministry of Finance and is under the administrative direction of the Revenue Secretary and the ministerial command of the Minister of Finance. The IRS is primarily responsible for collecting and administering indirect taxes accruing to the Government of India. It is one of the largest civil service amongst the organised civil services in the Indian government and serves the nation through discharging sovereign functions of collection of revenue for development, security and governance.

References

  1. 1 2 3 "|| Ghana Revenue Authority ||". egovonline.gegov.gov.gh. Retrieved 2019-03-24.
  2. ↑ "Ghana Revenue Authority, Biography". www.ghanaweb.com. Retrieved 2023-09-06.
  3. 1 2 "GRA – Ghana Revenue Authority – Services | MDA". www.epay.gov.gh. Retrieved 2020-05-29.
  4. 1 2 "About Us – GRA" . Retrieved 2020-05-29.
  5. ↑ "Developing the country for the benefit of all citizens". Theworldfolio. Retrieved 2023-09-06.
  6. 1 2 "DSpace" (PDF). ir.knust.edu.gh. Retrieved 2023-08-16.
  7. ↑ "GRA Management and Personnel Changes | Ministry of Finance | Ghana". www.mofep.gov.gh. Retrieved 2020-05-30.
  8. ↑ "Ghana Digital Services". www.trade.gov. Retrieved 2023-09-16.
  9. 1 2 3 4 5 6 https://gra.gov.gh/wp-content/uploads/2018/11/gra_act.pdf [ dead link ]
  10. ↑ "About Us – GRA" . Retrieved 2020-05-30.
  11. ↑ "Overview – Revenue Policy Division | Ministry of Finance | Ghana". mofep.gov.gh. Retrieved 2023-09-06.
  12. 1 2 "GRA Informant Award Scheme – GRA News" . Retrieved 2023-07-12.
  13. 1 2 "GRA retrieves $93m tax revenue through Informant Reward Scheme". BusinessGhana. Retrieved 2023-07-12.
  14. ↑ Awal, Mohammed (2022-12-19). "GRA retrieves over US$93m revenue via informants' scheme". The Business & Financial Times. Retrieved 2023-07-12.
  15. ↑ "Ghana Revenue Authority, Biography". www.ghanaweb.com. Retrieved 2023-09-23.
  16. 1 2 3 "GRA to group taxpayer offices". Business World Ghana. 2012-10-03. Retrieved 2020-05-30.
  17. ↑ "e-levy-law-online-tax-return-filing". www.deloitte.com. Retrieved 2023-10-14.
  18. ↑ "UNIPASS pilot at Takoradi Port set for Feb 21". Ghanaian Times. 2020-02-17. Retrieved 2020-05-30.
  19. ↑ "GCNet, West Blue Consulting shut down". Graphic Online. Retrieved 2020-05-30.
  20. ↑ "HKTDC Research". research.hktdc.com. Retrieved 2023-07-19.
  21. ↑ "UNIPASS explains benefits of new customs management system to Ghana's ports". MyJoyOnline.com. 2020-03-09. Retrieved 2020-05-30.
  22. ↑ "Ghana Ports & Harbours Authority". www.ghanaports.gov.gh. Retrieved 2020-05-30.
  23. ↑ "Ahenkorah projects 30% increase in revenue as benefits expected from UNIPASS, others". GhanaWeb. 14 May 2020. Retrieved 30 May 2020.
  24. ↑ "GRA pilots new clearing system at Takoradi Port". Graphic Online. Retrieved 2020-02-21.
  25. ↑ "Ghana Revenue Authority". BusinessGhana. Retrieved 2019-03-24.
  26. ↑ "Amendments Of Tax Laws – GRA News" . Retrieved 2023-07-12.
  27. 1 2 3 "GRA sets May 1, 2023 as implementation date for 3 key tax measures". www.myjoyonline.com. Retrieved 2023-07-12.
  28. ↑ "MyAssemby.Gov.GH". property.gov.gh. Retrieved 2023-09-07.
  29. ↑ "Commencement of Implementation of Unified Common Property Rate Platform in Conjunction with the Metropolitan, Municipal and District Assemblies (MMDAs) – GRA News" . Retrieved 2023-09-07.
  30. ↑ "GRA TO COLLECT PROPERTY RATE IN 2023". Juaben Municipal Assembly. 2023-01-19. Retrieved 2023-09-07.
  31. 1 2 "GRA deploys 5,000 TSOs to assist property rate collection and registration". GhanaWeb. 2023-04-14. Retrieved 2023-09-07.
  32. ↑ "GRA trains Shama District Assembly management staffs on myassembly.gov.gh – Shama District Assembly". 2023-03-16. Retrieved 2023-09-07.
  33. ↑ "Audit DCS for collecting property rate instead of GRA – ChaloG to Auditor General". www.classfmonline.com. 2023-07-21. Retrieved 2023-09-07.
  34. ↑ Dzidzoamenu, Isaac (2023-07-21). "ChaLoG petitions EOCO over private company collecting taxes on GRA's behalf". Starr Fm. Retrieved 2023-09-07.
  35. ↑ "Investigate illegal collection of taxes on GRA's behalf – ChaLoG to EOCO". GhanaWeb. 2023-07-21. Retrieved 2023-09-07.
  36. 1 2 "About Us – GRA" . Retrieved 2023-07-19.

See also

E-levy

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.