The Chamber of Commerce and Industry France Ghana (CCIFG), in collaboration with KPMG, has organised a Tax System Business Breakfast to update members of the chamber on the country’s tax reforms.
The event, attended by over 70 members of the chamber, was facilitated by a team from the Tax Unit of KPMG; a firm of chartered accountants.
The facilitators were a Deputy Manager, Mr Gordon Dardey; a Manager, Mr Michael Boateng, and a Partner, Mr Kofi Frempong-Kore.
Participants were enlightened on the principle of modified taxation, as well as changes in withholding tax laws and its impacts.
They were also updated on the personal income tax rates, stating that the highest income tax rate had been increased from 25 per cent to 35 per cent on persons earning income above GH¢10,000 monthly or GH¢120,000 per annum.
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In a presentation on taxation of business and investment income, Mr Dardey highlighted current tax provisions on capital allowance under operating and finance lease, accelerated capital allowance benefits for taxpayers under excise duty, carry-over of losses and repairs and improvement of depreciable assets and tax exemptions.
Mr Boateng, who spoke about the concept of Transfer Pricing, highlighted the key areas for compliance.
In his presentation, he explained the need to take transfer pricing documentation seriously, as the Ghana Revenue Authority (GRA) in recent times had increased its drive towards transfer pricing audits, resulting in huge tax liabilities for non-compliance.
He referred to a 2016 report from the Tax Justice Network that estimated an annual approximate loss of US$2 billion to Africa due to abuses of Transfer Pricing Principles.
He said the tax authorities were conscious of this and will not relent on their efforts to rake in some revenues in this space.
Mr Boateng further explained issues around technology transfer agreements and the need for their registration with the Ghana Investment Promotion Centre (GIPC).
Mr Frempong-Kore presented results from a KPMG survey conducted on businesses on the impacts of changes in tax legislation on their businesses.
He also touched on the new VAT regime and explained to taxpayers what they needed to take into consideration in complying with the new updates.
The breakfast meeting was the second event organised by CCIFG with KPMG this year to help both its members and non-members become abreast of the changes in Ghana’s tax system. — GB