The Ghana Revenue Authority (GRA) has announced its intention to expand its tax compliance measures to generate the necessary revenue for development. To identify tax infractions by companies or customers, the GRA has utilized a test-purchase approach.
Companies that fail to comply with these measures may be subject to a fine of GHC50,000 or face prosecution. In addition to these measures, the GRA will extend its tax operations to cover Personal Tax Income, Pay As You Earn (PAYE) tax, Tax Stamps, and Affixed Stamps on products.
Customers are expected to adhere to Section 41 of the Value Added Tax (VAT) Act, which mandates them to issue tax invoices consistently.
The GRA taskforce recently conducted an operation to enforce tax compliance, resulting in the invitation of eight shop operators and the arrest of two hotel managers. The establishments visited during the operation include 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 businesses were found to be non-compliant with the Commissioner’s tax invoice requirements, while others were not registered for VAT.
Joseph Annan, Area Enforcement Manager of GRA in charge of Accra Central, emphasized that failing to issue VAT when registered with the Authority constitutes a violation of tax laws. The two individuals arrested during the operation will undergo assessment for a pre-emptive fine of GHC50,000 at the Customs Office Division of GRA in Accra, while eight shop owners were invited to the GRA head office.
Annan noted that these shop owners had clearly violated VAT regulations, and the Authority had expanded its scope by including general tax compliance tests.
“It looks like we have more grounds to cover beuacuse 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.