Ghana, Canada fight double taxes

Ghanaian businesses in Canada and the vice versa will soon heave a sigh of relief following efforts by political leaders in the two countries to scrap repetitive taxes imposed on their operations, products and services.

Also, new businesses from each country that setup in the counterpart country will be taxed ones - either in Ghana or Canada - unlike the existing situation were such businesses are often made to pay almost similar taxes in both countries.

The efforts to spare businesses the ordeal of double taxation are expected to yield results soon having received the blessings of the President of Ghana, His Excellence John Dramani Mahama, and the Governor-General of Canada, His Excellence David Johnston.

The commitment by the two leaders on the issue of double taxation on cross border investments in their respective countries formed part of the various issues discussed and agreed to by HE Johnston and President Mahama when the latter visited the country from May 13-16.

Mr Johnston and his wife, accompanied by a delegation of business executives captains of industry from that country, were in the country to hold high level discussions with government officials, the Ghanaian business community and also explore ways by which both countries can benefit from each other.

After meeting with the President, Canada's Governor- General told the GRAPHIC BUSINESS in an exclusive interview that talks between the two were positive and should be expected to translate into increased investments in both countries in the coming days.

"We are looking at investments in mining, oil and gas and infrastructure, particularly in rail, airports, ports, roads and power generation."

"We also discussed ways of increasing investments and I think we were both concern of double taxation on businesses and agreed to work to eliminate it," the Right Honourable Johnston said.
Bilateral relations between the two countries date back to 1957 - when Ghana gained independence - and Canadian investments are currently spread across the country.

It recently helped Ghana with a 130 megawatts of thermal plant and HE Johnston said the generation capacity of the plant will be expanded to 260 in the next two years.

About 120 Canadian firms are currently active in the country and their investments has, over the last 12 years, increased by about 10 per cent per annum, thanks mainly to the sound socio-economic environment.

"The rule of law is entrenched in Ghana and your tenets of democracy is an inspiration to all. The growth rate is remarkable, currently at an enviable position of eight per cent, and I think that has been the driving force behind which Canada does business with Ghana," he said.

Given that Ghana  is currently ranked as the fourth top investment destinations in sub-Saharan Africa the third among the top five recipients of foreign direct investments (FDIs) in Africa by the Global Competitiveness Index from the World Economic Forum, HE Johnston said more Canadian businesses should be expected to pitch camp in the country to enable them reap from that huge investment potential that abound here.

He, however, downplayed concerns that the rising influence of Asian countries in Africa and Ghana in particular could limit their investments here, explaining that Canada welcomed healthy competition between nations.

Story: Maxwell Adombilla Akalaare /Graphic Business