Communications Service Tax Act,
2008 Act 754
ARRANGEMENT OF SECTIONS
Section
1.
Imposition of communication
service tax
2.
Persons liable to pay the tax
3.
Rate of tax
4.
Collection of the tax and
payment into Consolidated Fund
5.
National youth employment
support
6.
Submission of tax return and
time for payment of the tax
7.
Payment of interest on
outstanding tax
8.
Recovery of tax, interest or
penalty
9.
Distraint for liability
10.
Recovery in respect of person
under liquidation
11.
Records, related matters,
offences and penalties
12.
Objections and appeals
13.
Evidence in proceedings
14.
Directives and powers of the
Minister and the Commissioner
15.
Regulations
16.
Interpretation
THE SEVEN HUNDRED AND
FIFTY-FOURTH
ACT
OF THE PARLIAMENT OF THE
REPUBLIC OF GHANA
ENTITLED
COMMUNICATIONS SERVICE TAX ACT,
2008
AN ACT to provide for the
imposition of a communications
service tax and for related
matters.
DATE OF ASSENT: 28th March,
2008.
ENACTED by the President and
Parliament:
Imposition of communication
service tax
1. (1) There is imposed by this
Act a tax to be known as the
communications service tax to be
levied on charges payable by
consumers for the use of
communication service.
(2) The tax shall be levied on
all communications service usage
charged by communication service
providers with Class I licences
as provided in the National
Communications Regulations 2003
(L.L 1719).
Persons liable to pay the tax
2. The tax shall be paid
together with the communications
service charge to communication
service providers by consumers
of the service.
Hate of the tax
3.
The rate of the tax is 6% of the
charge for the use of the
communication service.
Collection of the tax and
payment into Consolidated Fund
4.
(1) The Value Added Tax Service,
established under section 36 of
the Value Added Tax Act 1998,
(Act 546) is responsible for the
administration and management of
the tax and shall collect and
account for the tax and any
interest and penalty paid under
the Act.
(2) Subject to section 5 the
Commissioner of the Value Added
Tax Service shall pay the tax
collected together with any
interest and penalty into the
Consolidated Fund.
National youth employment
support
5.
At least 20% of the revenue
generated from the tax shall be
used to Finance the national
youth employment programme.
Submission of tax return and
time for payment of the tax
6.
(1) Unless otherwise directed by
the Commissioner in writing, a
communication service provider
shall file a tax return to
account for the tax.
(2) The tax return shall be in a
form prescribed by the Minister
and shall state the amount of
tax payable for the period and
any related matters that may be
required.
(3) The Commissioner may require
a person to submit to the
Commissioner, in addition to the
tax return under subsection (1),
a further tax return in a
prescribed form.
(4) The request by the
Commissioner for a further tax
return may be made to a person
(a)
on that person's own behalf, or
(b)
as an agent or trustee of
another person.
(5) The return and the tax due
for the accounting period to
which the tax return relates
shall be submitted and paid to
the Commissioner not later than
the last working day of the
month immediately after the
month to which the tax return
and payment relate.
(6) On application in writing by
a service provider, the
Commissioner may extend the
period within which the tax
return may be submitted and
payment made, where good cause
is shown by the applicant.
(7) The extension shall be
communicated to the applicant in
writing and shall state the date
by which the tax return shall be
submitted and the tax for the
period paid.
(8) A service provider who
without justification fails to
submit to the Commissioner the tax
return by the due date is liable
to a pecuniary penalty of GH˘2,OOO.OO
and a further penalty of GH˘500.00
for each day that the return is
not submitted.
Payment of interest on outstanding
tax
7. (1) Subject to section 6 (6) a
service provider who fails to pay
the tax by the due date shall pay
monthly interest on the tax due at
the rate of one hundred and fifty
per cent of the average of the
prevailing commercial banks'
lending rates as published by the
Bank of Ghana.
(2) For the purpose of subsection
(1) any part of one month shall be
deemed to be one month.
(3) Subject to section 6 (6) where
the interest payable under
subsection (1) is not paid within
one month after the due date,
interest shall be paid on the
unpaid interest at the same rate
and in the same manner as interest
on the unpaid tax.
Recovery of tax, interest or
penalty due
8. (1) A tax, penalty or any
interest due under this Act which
remains unpaid after the due date
may be recovered by the
Commissioner as a debt.
(2) An amount shown as the tax on
a bill for communication .service
usage is recoverable as tax due
from the person who issues the
bill, whether or not
(a)
tax is chargeable on the
communication service usage, or
(b)
the person who issues the bill is
a person authorised or licensed by
the National Communications
Authority.
(3) Where a body, either corporate
or unincorporated which is liable
for the payment of the tax, or of
any penalty or interest that
arises under this Act, defaults in
payment, in whole or in part after
written demand, the directors,
partners, and the person in
control of the body are jointly
and severally liable to pay the
sum due.
(4) Where tax, penalty or interest
is payable and due under this Act
the Commissioner may apply to the
Court for an order that compels an
individual or business
(a)
from whom money is due or is
accruing to the person required to
pay the tax, interest or penalty,
or
(b)
who holds money for or on account
of the person required to pay the
tax, interest or penalty,
to pay to the Commissioner that
money, or so much of it as is
sufficient to discharge the tax,
interest or penalty payable and
due.
Distraint for liability
9. (1) Where tax, penalty or
interest due under this Act
remains unpaid after the time by
which this Act requires it to be
paid, the Commissioner may apply
to the Court by motion on notice
to the person from whom the
payment is due for an order to
levy distress
(a)
on the goods, chattels and effects
of that person, and (b) on,
(i)
the assets, property, building,
factory, machinery, plant, tools,
means of transport, accessories
and all equipment used for the
provision of communication service
by that person;
(ii) the commodity or items found
in premises or land owned by, in
use or in possession of that
person or of any other person on
behalf of or in trust for that
person.
(2) The distress order issued
under subsection (1) shall be
executed on the assets ofthe
person specified in the order and
the Value Added Tax Service shall
take possession of the property
specified in subsection (1),
exclusive of all liabilities.
(3) In furtherance of the levy of
distress, a person authorised in
writing by the Commissioner may
execute the order of distress on
the goods and assets specified
under subsection (1) and where
necessary, may break open any
building or place in the day-time
for the purpose.
(4) The authorised person may seek
the assistance of a police officer
and that police officer shall
assist in the execution of the
order of distress.
(5) The property distrained shall
be kept for fourteen days at the
cost of the owner and if the
amount due in respect of the tax,
interest or penalties, cost and
the charges for and incidental to
the distress are not paid, the
property distrained may be sold on
the orders of the Court.
(6) Where distrained property is
sold, there shall be paid out of
the proceeds of the sale,
(a)
the costs or charges of (i) the
distress,
(ii) maintenance of the distress,
and (iii) the sale, and
(b)
the amount due in respect of the
tax, interest and penalties
and any residue that remains after
these payments shall be paid to
the owner of the property but
payment to the owner is subject to
the prior interest of the Value
Added Tax Service which has
precedence over other interests.
(7) Where property seized in the
execution of the distress warrant
is under a mortgage, bill of sale,
charged by way of security for
debt, or is in any way encumbered,
the interest of the Value Added
Tax Service has precedence over
all the other interests.
Recovery in respect of a person
under liquidation
10. Where tax, penalty or interest
is due under this Act from a
person who is subject to
liquidation or bankruptcy
proceedings, the liquidator,
receiver, or other person
responsible for winding up the
affairs of the debtor shall not
distribute the assets until full
payment has been made of the tax,
penalty or interest due under this
Act.
Records, related matters, offences
and penalties
11. Sections 29 and 30 and Parts
lX, and XII of the Value Added Tax
Act 1998, (Act 546) apply to the
management of the tax with the
modifications that are necessary.
Objections and appeals
12. Sections 54 and 55 and PART X
of the Value Added Tax Act 1998,
(Act 546) apply in matters of
objections and appeals related to
the tax.
Evidence in proceedings
13. (1) A certificate issued by
the Commissioner that
(a)
a
tax return required by this Act
has not been submitted or has not
been submitted on the specified
date, or
(b)
tax shown as due in any tax return
or assessment made under this Act
has not been paid,
is sufficient evidence in civil or
criminal proceedings of that fact
unless the contrary is proved.
(2) A photocopy of a document
furnished to the Commissioner or
an officer ofthe VAT Service or
the National Communications
Authority under the requirements
ofthis Act and certified by the
Commissioner, is admissible as
evidence in civil or criminal
proceedings to the same extent as
the original.
(3) A statement or other
information contained in a
document produced by a computer
is admissible as evidence in civil
or criminal proceedings if it is
certified as correct by the
Commissioner unless the contrary
is proved.
Directives and powers of the
Minister and the Commissioner
14. (1) The Minister may give
policy directives that the
Minister considers necessary to
the Commissioner for the effective
implementation of this Act.
(2) Subject to the provisions of
this Act, the Commissioner may in
writing give administrative
directives that the Commissioner
considers necessary for the
implementation of the provisions
of this Act.
(3) The Commissioner may request
any person in writing to provide
security that the Commissioner
considers adequate for the
protection of revenue.
(4) The Minister in collaboration
with the Minister for
Communications shall establish a
monitoring mechanism to verify the
actual revenue that accrue to the
communication service providers in
respect of the tax.
Regulations
15.
The Minister may by legislative
instrument, make Regulations
generally for the purpose of
giving effect to the provisions of
this Act and may in particular
make Regulations to prescribe
(a)
the form of the tax return; and
(b)
the records to be kept in respect
of the tax.
Interpretation
16.
In this Act unless the context
otherwise requires "accounting
period" means one calendar month;
"charge for communications service
usage" means the amount chargeable
by a communication service
provider for communication
services usage, other than the
value added tax, national health
insurance levy;
"Commissioner" means the
Commissioner of Value Added Tax
appointed under section 44
of the Value Added Tax Act 1998,
(Act 546);
"Communication service" includes
the provision of a service through
a communications system for the
transmission or routing of signals
or a combination of these
functions;
"communications system" means a
system for the conveyance through
the agency of electric, magnetic,
electro-magnetic, electro-chemical
or electro-mechanical energy or
light energy of
(a)
speech, music and other
sounds;
(b)
visual images;
(c)
signals serving for imparting
whether as between persons and
things of a matter in the form of
sounds or visual images;
(d)
signals serving for the actuation
or control of machinery or
apparatus; and communications
equipment situated in Ghana; and
(i)
connected to but not comprised in
a communications system; or
(ii) connected to and comprised in
a communications system which
extends beyond the boundaries of
Ghana.
"communication service provider"
means a person licensed,
authorised or required to be
licensed to provide communication
services by the National
Communications Authority under
section 13 and 14 of the National
Communications Authority Act, 1996
(Act 524);
"Court" means the District,
Circuit or High Court;
"Minister" means the Minister
responsible for Finance;
"prescribed" means prescribed by
Regulations made under this Act;
"service" means communications
service;
"service provider" means
communications service provider;
"tax return" means the records
kept and required to be submitted
to the Commissioner to account for
the communications service tax
imposed under section 1 of this
Act;
"tax" means the communications
service tax imposed in section 1:
"tax period" means one calendar
month.
Date of Gazette
notification: 28th March, 2008.
GPCL, ASSEMBLY PRESS, GPCL/A244/350/03/2008
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