Participants commend Graphic, Stanbic
Participants at the Graphic Business/Stanbic Bank Business Breakfast Series have lauded the event, calling for the two companies to organise more of such to enable businesses and the private sector to air their views on issues that impact on their businesses and the economy.
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“The programme was a very good one because it exposed a lot of people to the provisions of the tax law, the incentives available and opportunities to widen the tax net, especially the angle of the worldwide base, instead of being a source based,” a chartered accountant, Mr Bartholomew Darko told the GRAPHIC BUSINESS after the maiden event.
Mr Darko was particularly encouraged that the country had decided to recognise and tax incomes irrespective of the jurisdiction they were earned in, saying “we can use it to develop our nation.”
The accountant, however, wanted the government to broaden the net by formalising the informal sector, citing the proliferation of mobile money and its impact on financial inclusion.
To start with, he proposed the capturing of people at every point of registration to capture them into the country’s tax database.
“Look at the universities, the students are there. While they register we can get them into the database even if it’s not time for them to pay taxes,” he suggested, adding businesses must also register.
The event
The Graphic Business Breakfast Meeting is a quarterly event organised by the Graphic Communications Group Ltd (GCGL) in partnership with Stanbic Bank Ghana for the business community to exchange ideas on the prospects of the economy.
The Finance Minister, Mr Seth Terkper, tax consultant, Mr Abdallah Ali-Nakyea and a Deputy Commissioner in charge of Policy and Programmes at the Ghana Revenue Authority (GRA), Mr Edward Gyamerah, presented papers on the topic, “The New Tax Law: Implications for the economy and businesses”.
The event was supported by Busy, a 4G broadband service provider and Citi FM, an Accra-based private radio station and was attended by a wide array of the business community.
The Ghana Revenue Authority and the Registrar General’s Department started a registration of businesses and tax identification numbers in 2010. Mr Darko said it should be possible for the revenue authority to roll out the system fully, by allowing tax assessments and payments to be made online, without interface with the tax office.
More reactions
“Once again, people are interested in elections. So during the registration, can’t we do a concurrent registration as well,” he quizzed.
“The programme was very good and educative. We work with the law and sometimes you require clarity and always have to call people at the GRA office. So this was very good,” Ms Cynthia Ahlidzah of Reindorf Chambers said.
She was happy about some of the interpretation issues that were clarified and satisfied that the GRA was working around the corner to issue practice notes to guide practitioners.
Tax consultant with Panel Kerr Foster (PKF), Mr Eric Amponsah Boateng, also found the forum educative and one which came with ample opportunity to explain the provisions up close.
“We also hope that some of the comments we’ve made would be considered, especially with the presence of the Finance Minister and the GRA. That would mean amendments to some portions of the law.
One of the areas of concern to the tax consultant was the increase of free zones companies at 15 per cent, from a rate of eight per cent, after such FZCs had existed for 10 years without paying taxes.
“The question is, can this attract investments into the country? When the 10 years is almost up, they cease operations and register a new company to avoid paying taxes. So I believe when you make the tax rates flexible, people will comply,” he stated.
For Mr Boateng, expanding the tax net was the way to go so that rates could be kept low for all classes of taxes.
