Amendments to Tax Laws: Enhancing Revenue Administration and Tax Compliance in Ghana

The Ghana Revenue Authority Announces Amendments to Tax Laws

The Ghana Revenue Authority (GRA) has recently announced the implementation of amendments to several tax laws. These changes are aimed at improving revenue administration and ensuring compliance with tax regulations. The amendments include the Electronic Transfer Levy (Amendment) Act 2022 (Act 1089), the Revenue Administration (Amendment) Act, 2022 (Act 1086), and the Value Added Tax (Amendment) No. 2 Act, 2022 (Act 1087).

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

The Electronic Transfer Levy (Amendment) Act 2022 (Act 1089) introduces changes to the existing electronic transfer levy. This levy applies to electronic transactions such as mobile money transfers, bank transfers, and other digital payment methods. The amendment aims to broaden the tax base and increase revenue generation for the government.

Under the amended act, individuals and businesses will be required to pay a specific percentage of the transfer amount as the electronic transfer levy. The exact percentage will be determined based on the transaction value. It is important for taxpayers to be aware of these changes and ensure compliance with the new regulations to avoid penalties or legal consequences.

Revenue Administration (Amendment) Act, 2022 (Act 1086)

The Revenue Administration (Amendment) Act, 2022 (Act 1086) introduces amendments to the existing revenue administration laws in Ghana. The aim of these amendments is to enhance revenue collection, improve tax compliance, and streamline administrative processes.

One of the key changes introduced by this amendment is the strengthening of tax enforcement measures. The GRA will have increased powers to enforce tax compliance and take appropriate actions against non-compliant individuals and businesses. This includes the ability to impose penalties, conduct audits, and initiate legal proceedings.

Additionally, the amendment introduces measures to simplify tax filing and payment procedures. It promotes the use of digital platforms for tax administration, making it easier for taxpayers to fulfill their obligations. The GRA will provide guidance and support to taxpayers to ensure a smooth transition to the new procedures.

Value Added Tax (Amendment) No. 2 Act, 2022 (Act 1087)

The Value Added Tax (Amendment) No. 2 Act, 2022 (Act 1087) brings about changes to the existing value-added tax (VAT) regulations in Ghana. The amendments aim to improve the efficiency and effectiveness of VAT administration, as well as address emerging challenges in the tax system.

One of the key changes introduced by this amendment is the expansion of the VAT registration threshold. Previously, businesses with an annual turnover below a certain threshold were exempt from VAT registration. The amendment raises the threshold, bringing more businesses under the VAT regime. This change will help broaden the tax base and increase revenue collection.

The amendment also introduces measures to combat VAT fraud and evasion. The GRA will have enhanced powers to detect and prosecute offenders, ensuring that all eligible businesses fulfill their VAT obligations. This will help create a level playing field for businesses and promote fair competition.

Conclusion

The amendments to the tax laws announced by the Ghana Revenue Authority are aimed at improving revenue administration, enhancing tax compliance, and addressing emerging challenges in the tax system. It is important for individuals and businesses to familiarize themselves with these changes and ensure compliance to avoid any legal consequences. The GRA will provide guidance and support to taxpayers during the transition period to facilitate a smooth implementation of the amended tax laws.