INTERNAL REVENUE ACT, 2000( 592 )
As
amended
ARRANGEMENT OF SECTIONS
CHAPTER I—INCOME TAX
PART I—IMPOSITION OF INCOME TAX
Section
1. Imposition of Income Tax
2. Final Taxes on Income Received
by Residents
3. Final Taxes on Income Received
by Non-residents
4. General Provisions Relating to
Taxes Imposed under Sections 2 and
3
PART II—CHARGEABLE INCOME
5. Chargeable Income
PART III—ASSESSABLE INCOME
Division I: Assessable Income
6. Assessable Income
7. Income from a Business
8. Income from an Employment
9. Income from an Investment
Division II: Exempt Income
10. Exempt Income
11. Industry Concessions
12. Derivative Amounts
Division III: Deductions
13. Deductions Allowed
14. Interest
15. Rent
16. Repairs
17. Deductions in Relation to the
Rental of Premises
18. Bad Debts
19. Research and Development
Expenditure
20. Capital Allowances
21. Foreign Currency Exchange
Losses
22. Carry Over of Losses
23. Deductions Not Allowed
Division IV: Tax Accounting
Principles
24. Year of Assessment and Basis
Period
25. Method of Accounting
26. Cash-basis Accounting
27. Accrual-basis Accounting
28. Prepayments
29. Claim of Right
30. Long-term Contracts
31. Trading Stock
32. Debt Obligations with Discount
or Premium
PART IV—MISCELLANEOUS RULES FOR
DETERMINING INCOME
33. Jointly Owned Investment
34. Leases
35. Valuation
36. Indirect Payments and Benefits
37. Recouped Expenditure
PART V—TAXATION OF INDIVIDUALS
38. Individual as Tax Unit
39. Personal Relief
PART VI—TAXATION OF ENTITIES
Division I: Taxation of
Partnerships and Partners
40. Principles of Taxation for
Partnerships
41. Ascertaining of Partnership
Income
42. Taxation of Partners
43. Partnership Obligations
Division II: Taxation of Companies
and Shareholders
44. Principles of Taxation for
Companies
45. Undistributed Profits of
Companies
Division III: Taxation of Bodies
of Persons and their Owners
46. Principles of Taxation for
Bodies of Persons
47. Calculation of the
Attributable Income of a Body of
Persons
48. Deduction for Amounts
Attributed to Beneficiary
49. Taxation of Beneficiaries of
Bodies of Persons
50. Incapacitated Persons
51. Deceased Individuals
Division IV: General Provisions
Applicable to Entities
52. Roll-over Relief
53. Collateral Benefits
54. Change in Control
55. Profit or Dividend Stripping
PART VII—INSURANCE AND RETIREMENT
SAVINGS
Division I: Short-Term Insurance
56. Short-term Insurance Business
Division II: Life Insurance
57. Reductions for Premiums Paid
58. Income from Life Insurance
Business
59. Proceeds of a Life Insurance
Policy
Division III: Retirement Savings
60. Contributions to a Retirement
Fund
61. Income of a Retirement Fund
62. Payments Made on Retirement
PART VIII—INTERNATIONAL
63. Geographic Source of Income
64. Foreign Income from a Separate
Business or Investment
65. Income Attributable to a
Permanent Establishment
66. Branch Profits Tax
67. Taxation of Non-residents
Providing Shipping, Air Transport
or Telecommunications Services in
Ghana
68. Relief from Double Taxation
PART IX—ANTI-AVOIDANCE
69. Income Splitting
70. Transfer Pricing
71. Thin Capitalisation
PART X—PROCEDURE RELATING TO THE
INCOME TAX
Division I: Returns
72. Furnishing of Return of Income
73. Cases where Return of Income
Not Required
74. Extension of Time to Furnish a
Return of Income
75. Definitions
Division II: Assessments
76. Provisional Assessments
77. Final Assessment
78. Self-Assessment
79. Additional Assessments
Division III: Payment of Tax
Subdivision A: Tax Instalments
80. Payment of Tax by Instalments
Subdivision B: Withholding of Tax
at Source
81. Withholding of Tax by
Employers
82. Payment of Interest to
Resident Persons
83. Payment of Dividends to
Resident Shareholders
84. Payment to Residents for
Goods and Services
85. Payments to Non-residents
Under Section 3
86. Payment to Non-residents for
Goods and Services
87. Payment of Tax Withheld
88. Failure to Withhold Tax
89. Tax Credit Certificates
90. Record of Payments and Tax
Withheld
91. Priority of Tax Withheld
92. Adjustment on Assessment and
Withholding Agent's Indemnity
93. Definitions
PART XI—INTERPRETATION
94. Definitions
CHAPTER II—CAPITAL GAINS TAX
PART I—IMPOSITION OF CAPITAL GAINS
TAX
95. Imposition and Rate of Capital
Gains Tax
PART II—REALISATION
96. Realisation
PART III—CHARGEABLE ASSET
97. Chargeable Asset
PART IV—CALCULATION OF CAPITAL
GAIN
98. Calculation of Capital Gain
99. Cost Base
100. Consideration Received
101. Exemption from Capital Gain
PART V—PROCEDURE RELATING TO
CAPITAL GAINS TAX
102. Returns and Payment of Tax
103. Assessments and Application
of Income Tax Procedure
PART VI—INTERPRETATION
104. Definitions
CHAPTER III—GIFT TAX
PART I—IMPOSITION OF TAX
105. Imposition of tax
PART II—TAXABLE GIFT
106. Taxable Gift
PART III—VALUATION
107. Valuation
PART IV—PROCEDURE RELATING TO GIFT
TAX
108. Returns and Payment of Tax
109. Assessments and Application
of Income Tax Procedure
PART V—INTERPRETATION
110. Definitions
CHAPTER IV—GENERAL PROVISIONS
PART I—INTERNATIONAL
111. Double Taxation Arrangements
PART II—ANTI-AVOIDANCE
112. General Anti-Avoidance Rule
PART III—PROCEDURE
Division I: Administration
Subdivision A: Commissioner of
Internal Revenue
113. Commissioner of Internal
Revenue
Subdivision B: Official
Documentation
114. Regulations
115. Practice Notes
116. Private Rulings
117. Forms and Notices
118. Tax Clearance Certificate
119. Tax Identification Number
120. Service of Notices and Other
Documents
121. Document Containing a
Mistake
Subdivision C: Records and
Information Collection
122. Accounts and Records
123. Currency Conversion
124. Access to Books, Records,
and Computers
125. Notice to Obtain Information
or Evidence
126. Books and Records Not in
English Language
127. Official Secrecy
Division II: Dispute Resolution
Subdivision A: Objections and
Appeals
128. Objection to Assessment
129. Appeal to Court
130. Appeal to Court of Appeal and
Supreme Court
131. Payment of Tax
Subdivision B: Proof
132. Burden of Proof
133. Documents
Division III: Compliance
Subdivision A: Collection
134. Due Date and Payment of Tax
135. Tax as a Debt Due to the
Service
136. Collection of Tax by
Distress
137. Security on Landed Property
for Unpaid Tax
138. Recovery of Tax from Person
Owing Money to Tax Debtor
139. Duties of Receivers
140. Recovery from Agent of
Non-resident
Subdivision B: Interest and
Penalties
141. Failure to Maintain Records
142. Failure to Furnish Return
143. Failure to Pay Tax on Due
Date
144. Understating Estimated Tax
Payable by Instalment
145. Making False or Misleading
Statements
146. Aiding and Abetting
147. Assessment of Interest and
Penalties
Subdivision C: Offences
148. Failure to Comply with Act
149. Failure to Pay Tax
150. Making False or Misleading
Statements
151. Impeding Tax Administration
152. Offences by Authorised and
Unauthorised Persons
153. Aiding or Abetting
Subdivision D: Entities
154. Offences by Entities
Subdivision E: Proceedings
155. Compounding Offences
156. Venue
157. Amounts Payable
Notwithstanding
Subdivision F: Remission and
Refund
158. Remission
159. Refunds and Set-off
PART IV—INTERPRETATION
Division I: Residence
160. Resident Individual
161. Resident Company
162. Resident Body of Persons
163. Resident Partnership
Division II: General Definitions
164. Associates
165. Calculation of Amounts
166. Underlying Ownership
167. Definitions
PART V—REPEALS TRANSITIONAL
PROVISIONS AND COMMENCEMENT
168. Repeal
169. Transitional Provisions
170. Commencement
SCHEDULES
First Schedule—Rates of Income Tax
Part I—Rates of income tax upon
individuals
Part II—Rates of income tax upon
companies
Part III—Rate of tax applicable to
bodies of persons
Part IV—Withholding tax rates on
payments to resident persons
Part V—Rate of non-resident tax
Part VI—Branch profits tax
Part VII—Transportation and
communications income of a
non-resident person
Part VIII—Withholding of tax on
payments to non-residents for
goods and services
Second Schedule—Valuation of
Benefits in kind—Accommodation and
Vehicles
Third Schedule—Capital allowances
Section
1. Capital Allowances Granted
2. Classes of Depreciable Assets
3. Class 1, 2, 3 and 4 Depreciable
Assets
4. Class 5 and 6 Depreciable
Assets
5. General Provisions
Fourth Schedule—Rates of Gitf Tax
THE FIVE HUNDRED AND NINETY-SECOND
ACT OF THE PARLIAMENT OF THE
REPUBLIC OF GHANA
ENTITLED
INTERNAL REVENUE ACT, 2000
AN ACT to amend and consolidate
the law relating to Income Tax,
Capital Gains Tax and Gift Tax and
to provide for related matters.
DATE OF ASSENT: 22nd December,
2000
BE IT ENACTED by Parliament as
follows:
CHAPTER I
INCOME TAX
PART I—IMPOSITION OF INCOME TAX
Section 1—Imposition of Income Tax
(1) A person who has a chargeable
income shall pay, subject to this
Act, for each year of assessment
income tax as calculated in
accordance with this Act.
(2) The income tax payable under
subsection (1) for a year of
assessment shall be calculated by
applying the rates of tax under
the relevant Part of the First
Schedule to the chargeable income
of that person for the year and
from the resulting amount there
shall be subtracted any tax
credits allowed to that person for
the year.
(3) Where a person is allowed more
than one tax credit for a year of
assessment, the credits shall be
applied in the following order:
(a) the foreign tax credit allowed
under section 68; then
(b) the tax credit allowed under
section 80 (relating to
instalments); then
(c) the tax credit allowed under
section 92 (relating to
withholding).
(4) Where a rate referred to in
subsection (2) changes during a
year of assessment,
(a) tentative taxes shall be
computed by applying the rates in
force before and after the
effective date of the change to a
person's chargeable income for the
entire year; and
(b) the income tax payable by that
person for the year shall be the
sum of that portion of each
tentative tax which the number of
months in each part of the year
during which the attributable rate
is in force bears to the number of
months in the entire basis year.
Section 2—Final Taxes on Income
Received by Residents
(1) Subject to this Act, a tax
shall be charged and shall be paid
by a resident person who, or
resident partnership which, is
paid
(a) a dividend by a resident
company, other than a dividend
exempt from tax under this Act; or
(b) for services referred to in
paragraphs (a) and (d) of
subsection (1) of section 84;[As
amended by the Internal Revenue
(Amendment) Act, 2002 (Act 622),
s.1(a).]
(2) The tax payable under
subsection (1) is calculated by
applying the rate of tax
prescribed,
(a) in a case within paragraph (a)
of subsection (1), in paragraph 2,
or [As amended by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.1(b).]
(b) in a case within paragraph (b)
of subsection (1), in paragraph 3,
of Part IV of the First Schedule
to the gross amount paid to the
resident person or the resident
partnership.
(3) A dividend consisting of a
capitalisation of profits or
treated as distributed under
subsection (1) of section 45 is
treated as paid to each of the
company's shareholders in
proportion to their respective
interests in the company.
(4) The Commissioner shall, in the
case of capitalization of profits,
direct that appropriate tax be
paid in accordance with this Act.
(5) The Commissioner shall, in
issuing any directives under
subsection (4), consider the
matters contained in paragraphs
(a) and (b) of subsection (2) of
section 45 with the necessary
modifications to make that
subsection applicable to
capatalization of profits.
(6) Subsections (3) and (4) shall
not apply to a company during the
first five years of commencement
of business.
Section 3—Final Taxes on Income
Received by Non-Residents
(1) Subject to this Act, a tax
shall be charged and shall be paid
by every non-resident person who,
or non-resident partnership which,
is paid any dividend, interest,
royalty, natural resource payment,
rent, endorsement fee or
management and technical service
fee accruing in or derived from
Ghana, other than a payment exempt
from tax under this Act.
(2) The tax payable under
subsection (1) is calculated by
applying the rate of tax
prescribed in Part V of the First
Schedule to the gross amount of
the dividend, interest, royalty,
natural resource payment, rent,
endorsement fee or management and
technical service fee received by
that person or partnership.[As
amended by the Internal Revenue
(Amendment) Act, 2002 (Act 622),
s.2.]
(3) Subsection (3) of section 2
applies to this section.
(4) This section does not apply to
any dividend, interest, royalty,
natural resource payment, rent,
endorsement fee or management and
technical service fee attributable
to a permanent establishment in
Ghana of a non-resident person or
non-resident partnership. [As
amended by the Internal Revenue
(Amendment) Act, 2002 (Act 622),
s.2.]
(5) Income to which subsection (4)
applies shall be included in
ascertaining assessable income of
the non-resident person or
non-resident partners in
accordance with section 6.
Section 4—General Provisions
Relating to Taxes Imposed Under
Sections 2 and 3
Tax imposed under subsection (1)
of section 2 and subsection (1) of
section 3 is a final tax on the
income on which the tax is imposed
and
(a) that income shall not be
included in ascertaining the
assessable income of the person
who receives it;
(b) no deduction shall be allowed
to the extent to which the
deduction relates to the
production of that income; and
(c) the tax payable by a person or
partnership under those
subsections shall not be reduced
by any tax credits allowed under
this Act and the liability of a
person or partnership under those
subsections is satisfied if the
tax payable has been withheld by a
withholding agent under
Subdivision B of Division III of
Part X.
PART II—CHARGEABLE INCOME
Section 5—Chargeable Income
Subject to this Act, the
chargeable income of a person for
a year of assessment is the total
of that person's assessable income
for the year from each business,
employment, and investment less
the total amount of deductions
allowed to that person for the
year under sections 13 to 22
(relating to general and specific
deductions), 39 (relating to
personal reliefs), 57 (relating to
life insurance), and 60 (relating
to contributions to retirement
funds).
PART III—ASSESSABLE INCOME
Division I: Assessable Income
Section 6—Assessable Income
(1) Subject to this Act, the
assessable income of a person for
a year of assessment from any
business, employment, or
investment is,
(a) in the case of a resident
person, the full amount of the
person's income from the business,
employment, or investment accruing
in, derived from, brought into, or
received in Ghana during any basis
period of the person ending within
the year of assessment;
(b) in the case of a non-resident
person, the full amount of the
person's income from the business,
employment, or investment accruing
in or derived from Ghana during
any basis period of the person
ending within the year of
assessment,
but does not include exempt
income.
(2) The amounts described in the
following paragraphs shall be
income brought into or received in
Ghana whether or not the source
from which the income is derived
has ceased:
(a) any amount from an income
accruing or derived from outside
Ghana which is remitted to or
transmitted into Ghana;
(b) any amount from an income
accruing or derived from outside
Ghana which is applied in whole or
partial satisfaction of any debt
incurred in Ghana; or
(c) any amount from an income
accruing or derived from outside
Ghana which is applied to purchase
a movable property which is
brought into Ghana.
Section 7—Income from a Business
(1) A person's income from a
business is that person's gains or
profits from any business carried
on for whatever period of time by
that person.
(2) There shall be included in
ascertaining the gains or profits
from a business carried on by a
person amounts accruing to or
derived by that person that are
attributable to the business and
that would otherwise be included
in calculating that person's
income from any investment.
Section 8—Income from an
Employment
(1) A person's income from an
employment is that person's gains
or profits from that employment.
(2) The gains or profits from an
employment of a person include any
allowances or benefits paid in
cash or given in kind to, or on
behalf of, that person from that
employment, other than
(a) a reimbursement or discharge
of a person's dental, medical, or
health insurance expenses where
the benefit is available to all
full-time employees on equal
terms;
(b) a passage to or from Ghana in
respect of that person's
appointment or termination of
employment where that person
(i)
is recruited or engaged outside
Ghana;
(ii) is in Ghana solely for the
purpose of serving the employer;
and
(iii) is not a resident of Ghana;
(c) any provision of accommodation
by an employer carrying on a
timber, mining, building,
construction or farming business
to that person at any place or
site where the field operation of
the business is carried on;
(d) a discharge or reimbursement
by an employer of an expenditure
incurred by that person on behalf
of the employer that serves the
proper business purposes of the
employer;
(e) a severance pay; or
(f) a night duty allowance paid to
a person who is a night shift
employee where the amount involved
does not exceed fifty per cent of
the monthly basic salary of that
person. [As amended by the
Internal Revenue (Amendment) Act,
2002 (Act 622), s.3].
(3) For the purposes of this
section, any amount, allowance, or
benefit is a gain or profit from
employment if it
(a) is provided by the employer,
an associate of the employer, or a
third party under an arrangement
with the employer or an associate
of the employer;
(b) is provided to an employee or
an associate of an employee; and
(c) is provided in respect of
past, present, or prospective
employment.
(4) The amount of any allowance or
benefit from an employment to be
included in ascertaining a
person's gains or profits under
subsection (2) shall be determined
in accordance with the Second
Schedule and, in any case not
referred to in that Schedule, as
the value of the allowance or
benefit to a reasonable person in
the position of that person.
Section 9—Income from an
Investment
(1) A person's income from an
investment is that person's gains
or profits from any investment.
(2) The gains or profits of a
person from an investment include
any dividends from a non-resident
company, interest, charge,
annuity, royalties, rent, natural
resource payment, or other income
accruing to or derived by that
person from the investment other
than an amount included in
ascertaining that person's income
from a business or employment.
Division II: Exempt Income
Section 10—Exempt Income
(1) The following incomes are
exempt from tax:
(a) the salary, allowances,
pension and gratuity of the
President;
(b) the income of a local
authority, other than income from
activities which are only
indirectly connected with the
local authority's status as a
local authority;
(c) the income of a statutory or
registered building society or
statutory or registered friendly
society, other than income from
any business carried on by the
society;
(d) income accruing to or derived
by an exempt organisation other
than income from any business;
(e) interest paid
(i)
to an individual by a resident
financial institution; or
(ii) to an individual on bonds
issued by the Government of Ghana;
(f) capital sums paid to a person
as compensation or a gratuity in
relation to
(i)
personal injuries suffered by that
person; or
(ii) the death of another person;
(g) the interest, dividend or
(i)
any other income of an approved
unit trust scheme or mutual fund,
(ii) any other income payable
under an approved unit trust
scheme or mutual fund to a holder
or member of that scheme;
(h) the income of a non-resident
person from any business of
operating ships or aircraft,
provided the Commissioner is
satisfied that an equivalent
exemption is granted by that
person's country of residence to
persons resident in Ghana;
(i)
the income of a public corporation
or institution exempted from tax
under any enactment;
(j) the income of a person
receiving instruction at an
educational institution from a
scholarship, exhibition, bursary,
or similar educational endowment;
(k) the income of an individual
entitled to privileges under the
Diplomatic Immunities Act, 1962
(Act 148) or a similar enactment
to the extent provided in that Act
or similar enactment or under
Regulations made under that Act or
similar enactment;
(l) the income of an individual
entitled to privileges under an
enactment giving effect to the
Convention on the Privileges and
Immunities of the United Nations
and the Convention on the
Privileges and Immunities of the
Specialised Agencies of the United
Nations to the extent provided in
that enactment;
(m) the income of an individual to
the extent provided for in an
agreement between the Government
of Ghana and a foreign government
or a public international
organisation for the provision of
technical service to Ghana where
(i)
the individual is a non-resident
person or an individual who is
resident solely by reason of
performing that service; and
(ii) the President has concurred
in writing with the tax provisions
in the agreement; and
(iii) it is in accordance with the
Constitution of the Republic of
Ghana; or
(n) the income of a person from an
employment in the public service
of the government of a foreign
country provided
(i)
that person is either a
non-resident person or an
individual who is resident solely
by reason of performing that
service;
(ii) that person does not exercise
any other employment or carry on
any business in Ghana;
(iii) the income is payable from
the public funds of the foreign
country; and
(iv) the income is subject to tax
in the foreign country.
(2) The Minister responsible for
Finance in consultation with the
Commissioner may, subject to the
prior approval of Parliament by
resolution in accordance with
clause (2) of article 174 of the
Constitution grant a waiver or
variation of tax imposed by this
Act in favour of any person or
authority.
Section 11—Industry Concessions
(1) Subject to subsection (7), the
income of a person from a farming
business in Ghana is exempt from
tax
(a) in the case of farming tree
crops, for the period of ten years
of assessment commencing from and
including the year in which the
basis period of that person ends,
being the period in which the
first harvest of those crops by
the business occurs;
(b) in the case of farming
livestock (other than cattle),
fish, or cash crops, for the
period of five years of assessment
commencing from and including the
year in which the basis period of
that person ends, being the period
in which the business commences;
or
(c) in the case of farming cattle,
for the period of ten years of
assessment commencing from and
including the year in which the
basis period of that person ends,
being the period in which the
business commences.
(2) The income of a company from
an agro processing business in
Ghana is exempt from tax for the
period of three years of
assessment commencing from and
including the year in which the
basis period of the company ends,
being the period in which
commercial production commences.
[As amended by Internal Revenue
(Amendment) Act, 2004 (Act 669),
s.1(a)]
"(2a) The income of a company from
an agro processing business
established in Ghana in or after
the financial year commencing 1st
January 2004 is exempt from tax
for a period of five years of
assessment commencing from and
including the year in which the
basis period of the company ends
being the period in which
commercial production commences.
(2b) The income of a company which
produces on commercial basis cocoa
by-products derived from
substandard cocoa beans, cocoa
husks and other cocoa waste as its
main raw materials is exempt from
tax for a period of five years of
assessment commencing from and
including the year in which the
basis period of the company ends
being the period in which
commercial production commences.
(2c) The income of a company whose
principal activity is the
processing of waste including
recycling of plastic and polythene
material for agricultural or
commercial purposes is exempt from
tax for a period of seven years of
assessment commencing from and
including the year in which the
basis period of the company ends
being the period in which
commercial production commences."
[As inserted by Internal Revenue
(Amendment) Act, 2004 (Act 669),
s.1(b)].
(3) Where a company conducts both
farming and agro processing
business, the company may elect to
be treated as if the business were
a farming business or an agro
processing business and claim the
exemption for which it is eligible
under subsection (1) or (2). [As
amended by Internal Revenue
(Amendment) Act, 2004 (Act 669),
s.1(c)]
(4) The income of a rural bank
from a business of banking is
exempt from tax for the period of
ten years of assessment commencing
from and including the year in
which the basis period of the bank
ends, being the period in which
operations commence.
(5) The income of a company from a
business of construction for
letting of residential premises is
exempt from tax for the period of
five years of assessment
commencing from and including the
year in which the basis period of
that company ends, being the
period in which operations
commenced. [As substituted by the
Internal Revenue (Amendment) Act,
2002 (Act 622), s.4]
(6) The income of a company from a
business of construction for sale
of residential premises is exempt
from tax for the period of five
years of assessment commencing
from and including the year in
which the basis period of that
company ends, being the period in
which operations commenced. [As
substituted by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.4]
(7) The income from cocoa of a
cocoa farmer is exempt from tax.
(8) The income of the Ghana Stock
Exchange is exempt from tax for
the period of fifteen years of
assessment commencing from and
including the year in which the
basis period of the Ghana Stock
Exchange ends, being the period in
which operations commenced.
(9) For the purposes of this
section, a business of a person of
the type referred to in subsection
(1), (2), (4), or (6) which is
carried on by that person at a
particular time is treated as the
same business as one of a similar
type carried on by that person or
an associate of that person at a
later time.
(10) In this section,
"cash crops" includes cassava,
maize, pineapple, rice, and yam;
"farming business" means the
business of producing crops, fish,
or livestock;
"agro processing business" means
the business of converting crops,
fish, or livestock produced in
Ghana into edible canned or other
packaged product other than in
their raw state; [As amended by
Internal Revenue (Amendment) Act,
2004 (Act 669), s.1(c)]
"tree crops" includes coconut,
coffee, oil palm, rubber, and shea
nut.
Section 12—Derivative Amounts
Nothing in section 10 or 11 shall
be construed as exempting in the
hands of the recipient, any
amounts, including dividends,
interest, or employment income,
paid wholly or partly out of
income exempt from tax.
Division III: Deductions
Section 13—Deductions Allowed
Subject to this Act, for the
purposes of ascertaining the
income of a person for a basis
period from any business or
investment there shall be
deducted—
(a) all outgoings and expenses
wholly, exclusively and
necessarily incurred during that
period by that person in the
production of the income;
(b) any other deductions as may be
prescribed by Regulations made
under section 114. [As amended by
the Internal Revenue (Amendment)
Act, 2002 (Act 622), s.5 (a)(b)]
Section 14—Interest
Subject to this Act, for the
purposes of ascertaining the
income of a person for a basis
period from any business or
investment, there shall be
deducted any interest incurred
during the period in respect of a
borrowing employed by that person
in the production of the income.
Section 15—Rent
For the purposes of ascertaining
the income of a person for a basis
period from any business or
investment, there shall be
deducted any rent incurred during
the period in respect of a land or
building occupied by that person
to the extent that the land or
building is occupied by that
person for the purposes of
producing the income.
Section 16—Repairs
For the purposes of ascertaining
the income of a person for a basis
period from any business or
investment, there shall be
deducted any outgoing or expense
incurred during the period in
respect of,
(a) the repair of any premises,
plant, machinery, or fixtures, or
(b) the renewal, repair, or
alteration of any implement,
utensil, or article,
to the extent that the premises,
plant, machinery, fixtures,
implement, utensil, or article is
employed by that person in the
production of the income.
Section 17—Deductions in Relation
to the Rental of Premises
(1) Subject to subsection (2),
where an individual receives a
rent in respect of residential or
commercial premises which is
included in ascertaining that
individual's income from an
investment for a basis period,
that individual shall be allowed
the following deductions for the
period in respect of the premises:
(a) to the extent to which the
premises are used in the
production of the rent,
(i)
the amount of any rates incurred
by that individual during the
period to any local, urban, city,
or district council in respect of
the premises; and
(ii) a mortgage interest incurred
by that individual during the
period in respect of a borrowing
employed by that individual in
constructing or acquiring the
premises; and
(b) a standard allowance equal to
thirty per cent of the aggregate
rent received by that individual
in respect of the premises during
the period.
(2) Where, during a basis period,
an individual has actually
incurred necessary outgoings or
expenses, other than those covered
by paragraph (a) of subsection
(1), in respect of any premises
referred to in subsection (1) in
excess of the amount of the
standard allowance for those
premises referred to in paragraph
(b) of subsection (1), that
individual shall also be allowed a
deduction for that excess.
Section 18—Bad Debts
(1) For the purposes of
ascertaining the income of a
person for a basis period from any
business, there shall be deducted
any debt claim that has become a
bad debt of that person during the
period where,
(a) the amount of the debt claim
is included in ascertaining the
person's assessable income with
respect to any prior basis period;
or
(b) the debt claim is in respect
of advances made by that person in
the normal course of business
other than advances made on
capital account.
(2) In this section, "bad debt",
in relation to a person, means a
debt claim of that person in
respect of which that person has
taken all reasonable steps to
pursue payment and which that
person reasonably believes will
not be satisfied.
Section 19—Research and
Development Expenditure
(1) For the purposes of
ascertaining the income of a
person for a basis period from any
business, there shall be deducted
research and development
expenditure incurred by that
person during the period in the
production of the income.
(2) In this section, "research and
development expenditure" means any
outgoing or expense incurred by a
person for the purpose of
developing that person's business
and improving business products or
process but does not include any
outgoing or expense incurred for
the acquisition of an asset in
relation to which that person is
entitled to a capital allowance
under section 20.
Section 20—Capital Allowances
For the purposes of ascertaining
the income of a person for a basis
period from any business, there
shall be deducted the capital
allowances for the business
calculated in accordance with the
Third Schedule.
Section 21—Foreign Currency
Exchange Losses
(1) Subject to this section, for
the purposes of ascertaining the
income of a person for a basis
period from any business, there
shall be deducted any foreign
currency exchange loss, other than
a loss that is capital in nature,
incurred in the production of
income during the period in
respect of any debt claim, debt
obligation, or foreign currency
holding of that person.
(2) A foreign exchange loss of a
capital nature may be capitalised
and capital allowance granted
under section 20.
(3) A deduction is not allowed to
a person for a foreign currency
exchange loss incurred unless that
person has notified the
Commissioner in writing of the
existence of the debt claim, debt
obligation, or foreign currency
holding which gave rise to the
loss by the due date for
furnishing of that person's return
of income for the year of
assessment in which the basis
period in which the debt arose or
foreign currency was acquired
ends, or by a later date which the
Commissioner may allow.
(4) Subsection (3) does not apply
to a financial institution.
(5) Where,
(a) a person has incurred a
foreign currency exchange loss
under a transaction,
(b) a foreign currency exchange
gain has accrued to or has been
derived by that person or an
associate under another
transaction, including a hedging
contract, and
(c) either
(i)
the transaction giving rise to the
loss would not have been entered
into, or might reasonably be
expected not to have been entered
into, if the transaction giving
rise to the gain had not been
entered into, or
(ii) the transaction giving rise
to the gain would not have been
entered into, or might reasonably
be expected not to have been
entered into, if the transaction
giving rise to the loss had not
been entered into,
no deduction is allowed to that
person where the amount of the
loss exceeds that part of the gain
included in the assessable income
of that person or associate.
(6) For the purposes of paragraph
(b) of subsection (5), "hedging
contract" means a contract entered
into by a person in order to
eliminate or reduce the risk of
adverse financial consequences
which might result for that person
under another contract from
currency exchange rate
fluctuation.
Section 22—Carry Over of Losses.
(1) Subject to this Act, for the
purposes of ascertaining the
income of a person for a basis
period from a farming,
manufacturing or mining business,
(a) there shall be deducted, for a
period of five years, a loss of
the previous five basis periods
incurred by that person in
carrying on that business; and
(b) where that person has incurred
more than one such loss, the
losses shall be deducted in the
order in which they were incurred.
[As Substituted by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.6(a).]
(2) A loss may only be deducted
where the loss has not been
deducted in ascertaining the
income of that person for a
previous basis period.
(3) The loss incurred by a person
for a basis period in carrying on
a business shall be calculated as
the excess of amounts deductible
under this Act in ascertaining a
profit or gain from the business
over the amounts required to be
included in ascertaining the
profit or gain.
(4) The aggregate deduction from
the assessable income in respect
of the loss shall not in any
circumstances exceed the amount of
the loss. [As inserted by the
Internal Revenue (Amendment) Act,
2002 (Act 622), s.6(b)]
(5) No deduction under this
section for any year of assessment
shall exceed the amount, if any,
of the assessable income (included
in the total assessable income for
that year of assessment) from the
source of income in respect of
which the loss, which is the
subject of the deduction, was
incurred. [As inserted by the
Internal Revenue (Amendment) Act,
2002 (Act 622), s.6(b)]
(6) For the purposes of this
section, "manufacturing business"
means a business that manufactures
mainly for export. [As inserted by
the Internal Revenue (Amendment)
Act, 2002 (Act 622), s.6(b)]
Section 23—Deductions Not Allowed
(1) A person shall not be allowed
a deduction for
(a) any domestic or private
outgoing or expense incurred by
that person;
(b) any outgoing or expense of a
capital nature incurred by that
person;
(c) any outgoing or expense
incurred by that person during a
basis period that is recoverable
during the period under any
insurance or contract of
indemnity;
(d) any income tax, profits tax,
or other similar tax incurred by
that person during the year in
Ghana or elsewhere other than as
provided for by subsection (1) of
section 68; or
(e) the depreciation of any fixed
assets. [As amended by the
Internal Revenue (Amendment) Act,
2002 (Act 622), s.7.]
(2) For the purposes of paragraph
(a) of subsection (1), "domestic
or private outgoing or expense"
incurred by a person includes
outgoings or expenses incurred by
that person
(a) in travelling between that
person's home and place of
business;
(b) in the maintenance of that
person, or that person's family or
home;
(c) in acquiring clothing worn to
work, other than clothing that is
not suitable for wearing outside
of work; and
(d) in the education of that
person not directly relevant to
that person's business, and
education leading to a degree,
whether or not it is directly
relevant to that person's
business.
Division IV: Tax Accounting
Principles
Section 24—Year of Assessment and
Basis Period
(1) The year of assessment for a
person shall be the calendar year
from 1st January to 31st December.
(2) The basis period of a person
is,
(a) in the case of an individual
or a partnership, the calendar
year from 1st January to 31st
December; and
(b) in the case of a company or a
body of persons, the accounting
year of the company or body.
(3) A company or body of persons
shall not change its accounting
date unless it obtains prior
approval in writing from the
Commissioner and complies with any
condition that may be attached to
the approval.
(4) The Commissioner may by notice
in writing, revoke an approval
granted a company or body of
persons under subsection (3) if
the company or body fails to
comply with any of the conditions
attached to the approval.
Section 25—Method of Accounting
(1) Subject to this Act, for the
purposes of ascertaining a
person's income accruing or
derived during a basis period, the
timing of inclusions and
deductions shall be made according
to generally accepted accounting
principles.
(2) Subject to subsections (1) and
(3), and unless the Commissioner
prescribes otherwise in a
particular case, a person shall
account for tax purposes on a cash
or accrual basis.
(3) A company shall account for
tax purposes on an accrual basis.
(4) A person may apply, in
writing, for a change in that
person's method of accounting and
the Commissioner may, by notice in
writing, approve the application
but only if satisfied that the
change is necessary to clearly
reflect that person's income.
(5) If the person's method of
accounting is changed, adjustments
to items of income, deduction, or
credit shall be made in the basis
period following the change, so
that an item is not omitted nor
taken into account more than once.
Section 26—Cash-Basis Accounting
(1) A person who is accounting for
tax purposes on a cash basis shall
account for amounts to be included
in calculating that person's
income when they are received by,
or made available to that person.
(2) An outgoing or expense is
incurred by a person who is
accounting for tax purposes on a
cash basis when it is paid by that
person.
Section 27—Accrual-Basis
Accounting
(1) A person who is accounting for
tax purposes on an accrual basis
shall account for amounts to be
included in ascertaining that
person's income when they are
receivable by that person.
(2) An outgoing or expense is
incurred by a person who is
accounting for tax purposes on an
accrual basis when it is payable
by that person.
(3) Subject to this Act, an amount
is receivable by a person when
that person becomes entitled to
receive it, even if the time for
discharge of the entitlement is
postponed or the entitlement is
payable by instalments.
(4) Subject to this Act, an amount
is treated as payable by a person
when all the events that determine
liability have occurred and the
amount of the liability can be
determined with reasonable
accuracy, but not before economic
performance with respect to that
amount occurs.
(5) For the purposes of subsection
(4), economic performance occurs
(a) with respect to the
acquisition of services or
property, at the time the services
or property are provided;
(b) with respect to the use of
property, at the time the property
is used; or
(c) in any other case, at the time
that person makes payment in full
satisfaction of the liability.
Section 28—Prepayments
Where a person is allowed a
deduction for an outgoing or
expense incurred on a service or
other benefit which extends beyond
twelve months, the deduction is
allowed proportionately over the
basis periods to which the service
or other benefit relates.
Section 29—Claim of Right
(1) A person who is accounting for
tax purposes on a cash basis shall
treat an amount as received and an
outgoing or expense as paid even
though that person is not legally
entitled to receive the amount or
liable to make the payment, if
that person claims to be legally
entitled to receive, or legally
obliged to pay the amount.
(2) Where subsection (1) applies
and that person later refunds the
amount received or recovers the
outgoing or expense paid, an
appropriate adjustment shall be
made to that person's income of
the basis period during which the
refund or recovery occurs.
(3) A person who is accounting for
tax purposes on an accrual basis
shall treat an amount as
receivable and an outgoing or
expense as payable even though
that person is not legally
entitled to receive the amount or
liable to make the payment, if
that person claims to be legally
entitled to receive, or to be
legally obliged to pay the amount.
(4) Where subsection (3) applies
and that person later ceases to
claim the right to receive the
amount or to claim an obligation
to pay the outgoing or expense, an
appropriate adjustment shall be
made to that person's income of
the basis period during which that
person ceases to make the claim.
Section 30—Long-Term Contracts
(1) In the case of a person
accounting for tax purposes on an
accrual basis, the timing of
inclusions in and deductions from
income relating to a long-term
contract of a business of that
person shall be accounted for on
the basis of the percentage of the
contract completed during any
basis period.
(2) The percentage of completion
is determined by comparing the
total costs allocated to the
contract and incurred before the
end of the basis period with the
estimated total contract costs
including any variations or
fluctuation.
(3) Where during the basis period
in which a long-term contract of a
business is completed the person
carrying on the business
(a) incurs a loss, or
(b) has an unrelieved loss
available for carry forward under
subsection (1) of section 22,
which is attributable to the
long-term contract, the
Commissioner may allow the loss to
be
(c) carried back to preceding
basis periods, and
(d) applied against an amount of
income of a basis period not
exceeding the amount by which
inclusions in the income of the
business relating to the long-term
contract for that period exceed
deductions therefrom.
(4) A loss incurred by a person in
carrying on a business during a
basis period is attributable to a
long-term contract of the business
to the extent that deductions
allowed in ascertaining the income
from the business relating to the
long-term contract for that period
exceed inclusions in ascertaining
that income.
(5) In this section, "long-term
contract" of a business of a
person means a contract for
manufacture, installation, or
construction, or, in relation to
each, the performance of related
services, which is not completed
within the basis period in which
work under the contract commenced,
other than a contract estimated to
be completed within twelve months
of the date on which work under
the contract commenced.
Section 31—Trading Stock
(1) For the purposes of
ascertaining the income of a
person for a basis period from a
business, there shall be deducted
the cost of trading stock of the
business disposed of by that
person during that period.
(2) The cost of trading stock
disposed of during a basis period
is determined by adding to the
opening value of trading stock for
that period the cost of trading
stock acquired during that period,
and subtracting the closing value
of trading stock for that period.
(3) The opening value of trading
stock for a basis period is
(a) the closing value of trading
stock at the end of the previous
basis period, or
(b) where that person commenced to
carry on the business during the
basis period, the value of trading
stock acquired prior to the
commencement of the business.
(4) The closing value of trading
stock is the lower of cost or
market value of trading stock on
hand at the end of the basis
period.
(5) A person who is accounting for
tax purposes on a cash basis may
calculate the cost of trading
stock on the prime-cost method or
absorption-cost method; and a
person who is accounting for tax
purposes on an accrual basis shall
calculate the cost of trading
stock on the absorption-cost
method.
(6) Where particular items of
trading stock are not readily
identifiable, a person may account
for that trading stock on the
first-in-first-out method or the
average-cost method but, once
chosen, a stock valuation method
may be changed only with the
written permission of the
Commissioner.
(7) In this section,
"absorption-cost method" means the
generally accepted accounting
principle under which the cost of
trading stock is the sum of direct
material costs, direct labour
costs, and factory overhead costs;
"average-cost method" means the
generally accepted accounting
principle under which trading
stock valuation is based on a
weighted average cost of units on
hand;
"direct labour costs" means labour
costs directly related to the
production of trading stock;
"direct material costs" means the
cost of materials that become an
integral part of the trading stock
produced;
"factory overhead costs" means the
total costs of manufacturing
except direct labour and direct
material costs;
"first-in-first-out method" means
the generally accepted accounting
principle under which trading
stock valuation is based on the
assumption that trading stock is
disposed of in the order of its
receipt;
“prime-cost method" means the
generally accepted accounting
principle under which the cost of
trading stock is the sum of direct
material costs, direct labour
costs, and variable factory
overhead costs;
"variable factory overhead costs"
means the factory overhead costs
which vary directly with changes
in volume.
Section 32—Debt Obligations with
Discount or Premium
(1) Subject to subsection (2), for
the purposes of ascertaining the
income of a person for a basis
period from any business or
investment, interest in the form
of any discount, premium, or
deferred interest shall be taken
into account as it accrues.
(2) Where the interest referred to
in subsection (1) is subject to
withholding tax under section 82
on payment, the interest shall be
taken into account when paid.
PART IV—MISCELLANEOUS RULES FOR
DETERMINING INCOME
Section 33—Jointly Owned
Investment
For the purposes of ascertaining
the income of a person from an
investment which is jointly owned
with another person, inclusions
and deductions with respect to the
investment shall be apportioned
among the joint owners in
proportion to their respective
interests in the investment.
Section 34—Leases
(1) Subject to subsection (2),
where a lessor leases a tangible
asset to a lessee under an
operating lease then for the
purposes of this Act, the lessor
is treated as the owner of the
asset and the lease payments are
treated as payment received from
the lessee.
(2) Where a lessor leases a
tangible asset to a lessee under a
finance lease, and that asset is
used by the lessee in the
production of that lessee's income
the lease rentals payable by the
lessee shall be treated as an
expense deductible under paragraph
(a) of section 13.
(3) For the purposes of this Act,
a lease of an asset is a finance
lease where,
(a) the lease agreement provides
for transfer of ownership
following the end of the lease
term, or the lessee has an option
to purchase the asset after expiry
of the lease term for a fixed or
agreed price; or
(b) the lease term exceeds
seventy-five per cent of the
useful life of the leased asset;
or
(c) the estimated residual value
of the asset after expiry of the
lease term is less than twenty per
cent of its market value at the
commencement of the lease; or
(d) the present value of the
minimum lease payments equals or
exceeds ninety percent of the
market value of the asset at the
commencement of the lease term; or
(e) the leased asset is
custom-made for the lessee and
after expiry of the lease term it
will not be usable by anyone other
than the lessee.
(4) Paragraph (d) of subsection
(3) does not apply to leases that
commence during the last
twenty-five per cent of the useful
life of the asset.
(5) For the purposes of this
section, the discount rate used to
determine the present value of
lease payments shall be the Bank
of Ghana rediscount rate.
(6) For the purposes of this
section, a lease term includes an
additional period for which the
lessee has an option to renew the
lease.
(7) Where the lessor was the owner
of the asset before commencement
of the finance lease, then the
lease agreement is treated as a
sale by the lessor and a purchase
by the lessee.
Section 35—Valuation
(1) For the purposes of this
Chapter, the value of a benefit in
kind is the market value of the
benefit on the date the benefit is
taken into account for tax
purposes.
(2) The market value of a benefit
is determined without regard to
any restriction on transfer or to
the fact that it is not otherwise
convertible to cash.
Section 36—Indirect Payments and
Benefits
There shall be included, in
ascertaining the income of a
person,
(a) a payment that directly or
indirectly benefits that person,
and
(b) a payment dealt with as that
person directs,
which would have been so included
if the payment had been made
directly to that person.
Section 37—Recouped Expenditure
(1) Where a previously deducted
outgoing, expense, or bad debt is
recovered by a person, the amount
recovered is included in
ascertaining the income of that
person in the basis period in
which it is recovered and takes
the character of the income to
which the deduction is related.
(2) For the purposes of subsection
(1), a deduction is considered
recovered upon the occurrence of
an event which is inconsistent
with the basis for the deduction.
PART V—TAXATION OF INDIVIDUALS
Section 38—Individual as Tax Unit
The chargeable income of each
individual is determined
separately.
Section 39—Personal Reliefs
(1) The assessable income of an
individual for a year of
assessment shall be reduced by the
following amounts:
(a) in the case of an individual
with a dependant spouse or at
least two dependant children,
thirty currency points;
(b) in the case of a disabled
individual, twenty-five per cent
of that individual's assessable
income from any business or
employment;
(c) in the case of an individual
who is sixty or more years of age
and derives an assessable income
during the year from an employment
or business, the lesser of thirty
currency points or the total of
that income;
(d) in the case of an individual
sponsoring the education of the
individual's children or wards in
any recognised registered
educational institution in Ghana,
twenty-four currency points per
child or ward, but that individual
may only claim a relief in respect
of three children or wards and,
where two or more persons qualify
in respect of the same child or
ward, only one relief shall be
granted;
(e) in the case of an individual
with a dependant relative, other
than a child or spouse, who is
sixty or more years of age, twenty
currency points but that
individual may only claim a relief
in respect of two dependant
relatives and, where two or more
persons qualify in respect of the
same relative, only one relief
shall be granted; and
(f) in the case of an individual
who has undergone any training to
update the professional, technical
or vocational skills or knowledge
of that individual, the cost of
the training, not exceeding fifty
currency points. [As Substituted
by the Internal Revenue
(Amendment) Act, 2002 (Act 622),
s.8(a)]
(2) In this section, "dependant
child, spouse or relative" in
respect of an individual, means a
child, spouse or relative of the
individual for whom that
individual provides the
necessaries of life. [As
Substituted by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.8(b)]
PART VI—TAXATION OF ENTITIES
Division I: Taxation of
Partnerships and Partners
Section 40—Principles of Taxation
for Partnerships
(1) Except as provided in this
Act, a partnership is not liable
to pay tax on the income of the
partnership.
(2) The income of a partnership is
taxed to the partners in the
partnership in accordance with
this Division.
Section 41—Ascertaining
Partnership Income
(1) Partnership income for a basis
period of a resident or
non-resident partnership is the
assessable income of the
partnership for the year of
assessment in which the basis
period ends calculated according
to sections 5 and 6, without
regard to sections 39, 57, or 60,
as if the partnership were a
resident person.
(2) Losses of a partnership for a
basis period are not allocated to
the partners of the partnership,
but are carried over and taken
into account in ascertaining the
partnership income of the
partnership in subsequent basis
periods of the partnership in
accordance with section 22.
(3) Subject to section 54, where
there is a change in the
constitution of a partnership, the
reconstituted partnership may
claim a deduction for losses of
the former partnership under
section 22 as though the
reconstituted partnership and the
former partnership were the same
partnership.
(4) In ascertaining partnership
income,
(a) account shall only be taken of
amounts which are accrued,
derived, or incurred on behalf of
the partners in common; and
(b) property held on behalf of the
partners in common is treated as
if the partnership and not the
partners owned it.
(5) Amounts included and deducted
in ascertaining partnership income
under subsection (4) are treated
as if they were accrued, derived,
or incurred by the partnership and
not the partners.
Section 42—Taxation of Partners
(1) For the purposes of
ascertaining the income of a
partner from a partnership for a
basis period of the partner, there
shall be included the partner's
share of partnership income for a
basis period of the partnership
ending on the last day of, or
during the basis period of the
partner.
(2) Partnership income retains its
character as to type and source
(including geographic source) on
allocation to partners under
subsection (1), and is deemed to
pass through the partnership
proportionally to each partner’s
share of partnership income unless
the Commissioner permits
otherwise.
(3) Tax withheld under Subdivision
B of Division III of Part X from
payments made to a partnership
which are included in ascertaining
partnership income and foreign
income tax paid by a partnership
are allocated among the partners
according to each partner's share
of partnership income at the end
of the basis period of the
partnership during which the tax
is withheld.
(4) A partner is deemed to have
paid the tax allocated to the
partner by subsection (3) at the
time of allocation and a credit
may be available to the partner
for the tax as provided by section
68 or 92.
(5) Subject to subsection (6), a
partner's share of partnership
income shall be equal to the
partner's percentage interest in
the income of the partnership as
set out in the partnership
agreement.
(6) Where the allocation of income
in the partnership agreement does
not reflect the contribution of
the partners to the partnership's
operations, a partner's share of
partnership income shall be equal
to the partner's percentage
interest in the capital of the
partnership.
Section 43—Partnership Obligations
(1) A partnership shall file a
return of partnership income in
accordance with Division I of Part
X where
(a) the partnership is a resident
partnership, or
(b) the partnership has a
permanent establishment situated
in Ghana.
(2) Any election, notice, or
statement to be filed in relation
to a partnership's activities
shall be filed by the partnership.
Division II: Taxation of Companies
and Shareholders
Section 44—Principles of Taxation
for Companies
(1) A company is liable to tax
separately from its shareholders.
(2) Subject to subsection (3), a
dividend paid to a resident
company by another resident
company is exempt from tax where
the company receiving the dividend
controls, directly or indirectly,
twenty-five per cent or more of
the voting power in the company
paying the dividend.
(3) Subsection (2) does not apply
to
(a) a dividend paid to a company
by virtue of its ownership of
redeemable shares in the company
paying the dividend; or
(b) a dividend of the type
referred to in paragraph (e) of
subsection (3) of section 55.
Section 45—Undistributed Profits
of Companies
(1) Where the Commissioner is
satisfied that a company
controlled by not more than five
persons and their associates does
not distribute to its shareholders
as dividends a reasonable part of
its income from all sources for a
basis period within a reasonable
time after the end of the basis
period, the Commissioner may, by
notice in writing, treat that part
of the company’s income which the
Commissioner determines as
distributed as dividends paid to
its shareholders during that
period or any other period.
(2) In determining whether a
company has distributed a
reasonable part of its income from
all sources for a basis period,
the Commissioner shall consider
(a) the current requirements of
the company's business after
accounting for any adjustments
which the Commissioner may make
under sections 70 or 112; and
(b) any other requirements
necessary or advisable for the
maintenance and development of the
business.
Division III: Taxation of Bodies
of Persons and their Owners
Section 46—Principles of Taxation
for Bodies of Persons
(1) A body of persons is liable to
tax with respect to its chargeable
income separately from its
beneficiaries.
(2) The attributable income of a
body of persons, ascertained in
accordance with section 47, may be
attributed to and taxed in the
hands of that body's beneficiaries
in the circumstances outlined in
section 49 with credit for any tax
paid by that body with respect to
the attributed income.
(3) Separate calculations of the
chargeable income of a body of
persons shall be made for separate
bodies of persons regardless of
whether they have the same
managers.
(4) Income accruing to, or derived
by a body of persons other than as
a bare agent, whether or not
derived on behalf of another
person and whether or not any
other person is entitled to the
income, is treated as the income
of that body and not the income of
any other person.
(5) Property of a body of persons
is treated as if it were owned by
that body and not the
beneficiaries or managers of that
body.
(6) Foreign income tax paid with
respect to the income of a body of
persons, whether paid by a manager
or beneficiary, is treated as paid
by that body.
Section 47— Calculation of the
Attributable Income of a Body of
Persons
(1) The attributable income of a
resident or non-resident body of
persons for a basis period is the
chargeable income of that body for
the year of assessment in which
the basis period ends calculated
according to sections 5 and 6,
without regard to section 39, 57,
or 60, as if the body were a
resident person and determined
without regard to subsection (1)
of section 48.
(2) Losses of a body of persons
for a basis period are not
allocated to the beneficiaries of
that body, but are carried over
and taken into account in
ascertaining the income and
attributable income of that body
in subsequent basis periods of
that body in accordance with
section 22.
Section 48—Deduction for Amounts
Attributed to Beneficiary
(1) Subject to this Act, where an
ascertained resident beneficiary
of a body of persons
(a) acquires a vested right to an
amount included in ascertaining
the attributable income of that
body during the basis period of
that body in which the amount is
included in ascertaining the
income of the body, and
(b) has the same basis period as
that body,
the amount shall be deducted in
ascertaining the income of that
body for the basis period.
(2) Subsection (1) applies
irrespective of whether the
beneficiary acquires the vested
right as a result of the exercise
by a manager of a discretion
vested in the manager or the
happening of some other contingent
event.
Section 49—Taxation of
Beneficiaries of Bodies of Persons
(1) Notwithstanding subsection (4)
of section 46, for the purposes of
ascertaining the income of a
beneficiary from a body of persons
for a basis period of the
beneficiary, there shall be
included any amount included in
ascertaining the attributable
income of that body, whenever
derived by that body
(a) to which the beneficiary has a
vested right and which is
deductible in ascertaining the
income of that body under
subsection (1) of section 48,
(b) to which the beneficiary is or
has become entitled otherwise than
in the manner referred to in
paragraph (a), or
(c) which is applied to the
benefit of the beneficiary in cash
or in kind,
whichever occurs first.
(2) Attributable income of a body
of persons retains its character
as to type and source (including
geographic source) on allocation
to the beneficiaries under
subsection (1).
(3) Subject to subsection (4),
where subsection (1) applies, the
beneficiary is treated as deriving
the amount at the end of the basis
period of the beneficiary in which
the beneficiary becomes entitled
to the amount or in which the
amount is applied to the
beneficiary's benefit.
(4) Where subsection (1) of
section 48 applies, the
beneficiary is treated as deriving
the amount referred to in
subsection (1) of this section at
the time the amount is derived by
that body.
(5) Subject to this Act, a
beneficiary of a body of persons
is allocated any tax paid by the
body, whether by withholding under
Subdivision B of Division III of
Part X, as a result of subsection
(6) of section 46, or otherwise,
with respect to an amount referred
to in subsection (1) at the time
the beneficiary is treated as
deriving the amount.
(6) A beneficiary is deemed to
have paid the tax allocated to the
beneficiary by subsection (5) at
the time of allocation and a
credit may be available to the
beneficiary for that tax as
provided by section 68 or 92, in
the latter case, as though the tax
were withheld from a payment to
the beneficiary.
Section 50—Incapacitated Persons
For the purposes of determining
whether an amount vests in a
beneficiary of a body of persons
under subsection (1) of section 48
or whether a beneficiary of that
body is entitled to an amount
under subsection (1) of section
49, a lack of legal capacity of
the beneficiary shall be ignored.
Section 51—Deceased Individuals
For the purposes of subsection (1)
of section 48 and subsection (1)
of section 49, an ascertained
successor or legatee of a deceased
individual is treated as having a
vested interest in an amount
included in ascertaining the
attributable income of the estate
of the deceased which is derived
by the executor of the estate for
the immediate or future benefit of
the successor or legatee.
Division IV: General Provisions
Applicable to Entities
Section 52—Roll-Over Relief
(1) Subject to subsection (3), the
transfer by a person of a business
asset, other than a class 1, 2, 3,
or 4 depreciable asset, to an
associate is treated as a disposal
for a consideration equal to
(a) the cost of the asset to the
person or, in the case of a class
5 or 6 depreciable asset, the
asset's written down value,
pursuant to paragraph 4 of the
Third Schedule, where all the
following conditions are
satisfied:
(i)
the asset is a business asset of
the associate or, in the case of a
class 5 or 6 depreciable asset, a
depreciable asset of the
associate;
(ii) at the time of the transfer,
that person and the associate are
residents; and the associate is
or, in the case of an associate
partnership, its partners are not
exempt from tax;
(iii) there is continuity of
underlying ownership in the asset
of at least twenty five per cent;
and
(iv) an election for this
paragraph to apply is made by both
the person and the associate; or
(b) in any other case, the market
value of the asset at the date the
transfer is made.
(2) Subject to subsection (3), the
transfer by a person of class 1,
2, 3, or 4 depreciable assets to
an associate is treated as a
disposal for a consideration equal
to
(a) the written down value,
pursuant to paragraph 3 of the
Third Schedule, of the pool to
which the depreciable assets of
the person belong at the date of
transfer where all the following
conditions are satisfied:
(i)
the assets constitute all the
assets in that pool of the person;
(ii) the assets constitute
depreciable assets of the
associate;
(iii) at the time of the transfer
that person and the associate are
residents; and the associate is
or, in the case of an associate
partnership, its partners are not
exempt from tax;
(iv) there is continuity of
underlying ownership in the asset
of at least twenty five per cent;
and
(v) an election for this
paragraph to apply is made by both
the person and the associate; or
(b) in any other case, the market
value of each asset at the date
the transfer is made.
(3) The transfer of a business
asset between individuals who are
associates is treated as a
disposal for a consideration equal
to the market value of the asset
at the time the transfer is made.
(4) In this section,
"business asset" includes any
asset which is used in, or held
for the purposes of a business,
any asset held for sale in a
business and an asset of a
partnership or company;
“person” includes a partnership.
Section 53—Collateral Benefits
(1) For the purposes of this
Chapter, a benefit conferred by an
entity directly or indirectly on
an eligible person, in any
capacity, in respect of
(a) the use or transfer of
property, money or rights of the
entity,
(b) the creation or destruction of
property,
(c) the creation or release of
rights or obligations, or
(d) the provision of services,
is treated as income of the person
from an investment.
(2) The amount of income referred
to in subsection (1) is equivalent
to the value of the benefit
conferred, less the following
amounts:
(a) a consideration provided by
that person for the benefit;
(b) an amount in respect of the
conferring of the benefit which
otherwise is included in
ascertaining the assessable income
of that person;
(c) an amount which represents a
return of capital by that entity;
and
(d) an amount which represents a
distribution of realised profits
of that entity.
(3) The value of a benefit
referred to in subsection (1)
shall be determined in accordance
with the Second Schedule and, in
any case not referred to in that
Schedule, as the value of the
benefit to a reasonable person in
the position of the
first-mentioned person.
(4) In this section, "eligible
person" includes a partner of a
partnership, a director or
shareholder of a company, a
manager or beneficiary of a body
of persons and an associate of
those persons.
Section 54—Change in Control
(1) Notwithstanding sections 18
and 22, where there is a change of
fifty per cent or more in the
underlying ownership of an entity
as compared with its ownership one
year previously, the entity is not
permitted to
(a) deduct a debt claim arising
prior to the change in ownership,
which has become a bad debt after
the change, or
(b) deduct a loss incurred prior
to the change in ownership after
the change.
(2) For the purposes of
ascertaining a loss under
subsection (1), the periods before
and after the change in ownership
are treated separately.
Section 55—Profit or Dividend
Stripping
(1) A deduction is not allowed for
a loss incurred on the disposal of
shares or an interest in shares of
a company or a disposal of an
interest in a body of persons
where the disposal forms part of a
profit or dividend stripping
arrangement.
(2) Subsection (1) of section 48
and subsection (5) of section 49
do not apply to a beneficiary of a
body of persons who acquires a
vested right or an entitlement to
an amount included in ascertaining
attributable income of that body
as part of a profit or dividend
stripping arrangement.
(3) In this section, "profit or
dividend stripping arrangement"
means an arrangement under which
(a) a company or body of persons
(referred to as the "target") has
accumulated, current, or expected
profits (referred to as the
“profits”);
(b) another person (referred to as
the "acquirer") acquires an
interest (including shares) in the
target and makes a payment,
whether or not in respect of the
acquisition and whether or not the
payment is at the time of
acquisition;
(c) the payment made by the
acquirer reflects, in whole or in
part, the profits of the target;
(d) the payment made by the
acquirer is not taxed in the hands
of the recipient or is taxed at a
rate below the tax rate applicable
to resident companies;
(e) after the acquirer acquires
the interest in the target, the
target makes a distribution,
whether by way of dividend or
otherwise, to the acquirer which
represents, in whole or in part,
the profits.
PART VII—INSURANCE AND RETIREMENT
SAVINGS
Division I: Short-Term Insurance
Section 56—Short-Term Insurance
Business
(1) The income of a person for a
basis period from a short-term
insurance business shall be
determined according to this
section.
(2) There shall be included in
ascertaining the income of a
person for a basis period from a
short-term insurance business
(a) the amount of gross premiums,
including premiums on
re-insurance, accruing to or
derived by that person during the
basis period from carrying on that
business in respect of the
insurance of any risk, other than
premiums returned to the insured;
(b) amounts otherwise to be
included in ascertaining the
income of that person during the
basis period from carrying on that
business, including any commission
or expense allowance from
re-insurers, and any amounts from
investments held in connection
with that business; and
(c) the amount of any reserve
deducted in the previous basis
period under paragraph (c) of
subsection (3).
(3) For the purposes of
ascertaining the income of a
person for a basis period from a
short-term insurance business,
there shall be deducted
(a) the amount of any claims
admitted by that person during the
basis period in the carrying on
that business, less any amount
recovered or recoverable during
the basis period under any
contract of re-insurance,
guarantee, security, or indemnity;
(b) amounts otherwise deductible
in ascertaining the income of that
person during the basis period in
carrying on that business, other
than amounts deductible under
paragraph (a); and
(c) the amount of any reserve for
unexpired risks referable to that
business as at the end of the
basis period.
(4) Where, for a basis period, the
total amount allowed to a person
as deductions under subsection (3)
exceeds the total amount included
in income under subsection (2),
the amount of the excess shall not
be deducted against any other
income of that person. [ As
Substituted by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.9]
Division II: Life Insurance
Section 57—Reductions for Premiums
Paid
(1) Subject to subsection (2), the
assessable income of an individual
for a year of assessment shall be
reduced by any insurance premium
paid by that individual in Ghana
currency during a basis period
ending within the year to a person
carrying on a life insurance
business in Ghana with respect to
insurance on the individual's
life.
(2) The reduction for premiums
paid, referred to in subsection
(1), shall not exceed the lesser
of
(a) ten percent of the sum
assured; or
(b) the amount calculated as ten
percent of the individual's total
assessable income for the year
from each business, employment,
and investment.[As substituted by
the Internal Revenue (Amendment)
Act, 2002 (Act 622), s.10]
Section 58—Income from Life
Insurance Business
(1) The income of a person for a
basis period from a life insurance
business shall be determined
according to this section.
(2) There shall only be included
in ascertaining the income of a
person for a basis period from a
life insurance business amounts
accruing to or derived by that
person during the basis period
from investments attributable to
the business.
(3) There shall only be deducted
in ascertaining the income of a
person for a basis period from a
life insurance business management
expenses, including commissions,
to the extent incurred by that
person during the basis period in
carrying on the life insurance
business.
(4) Where, for a basis period, the
total amount allowed to a person
as deductions under subsection (3)
exceeds the total amount included
in income under subsection (2),
the amount of the excess shall not
be deducted against any other
income of that person. [As
Substituted by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.11.]
Section 59— Proceeds of a Life
Insurance Policy
The proceeds of a life insurance
policy paid by a person in the
course of carrying on a life
insurance business are exempt from
tax in the hands of the
policy-holder to the extent to
which they are attributable to
(a) premiums paid in Ghana with
respect to the policy, and
(b) income of the business, for
any basis period, included in the
assessable income of the person.
Division III: Retirement Savings
Section 60—Contributions to a
Retirement Fund
(1) For the purposes of
ascertaining the income of a
person for a basis period from a
business, that person
(a) is entitled to a deduction for
a contribution made to a
retirement fund in respect of an
employee only if the contribution
is included in the income of the
employee under subsection (2); and
(b) is not entitled to a deduction
for a payment made to an
individual on retirement on
account of old age, sickness, or
other infirmity.
(2) There shall be included in
ascertaining the income of an
employee from an employment for a
basis period of the employee, a
contribution made by an employer
during the period to any
retirement fund in respect of the
employee and, to the extent that
the contribution is attributable
to employment producing income
accruing in or derived from Ghana,
the contribution shall be included
in the employee's assessable
income from the employment for the
year of assessment in which the
basis period ends.
(3) An employee's assessable
income for a year of assessment
shall be reduced by contributions
made in respect of the employee by
an employer during a basis period
of the employee ending within the
year to the Social Security
Pension Scheme established under
the Social Security Law, 1991 (P.N.D.C.L.
247) to the extent to which the
contributions
(a) are included in assessable
income of the employee for the
year under subsection (2); and
(b) do not exceed seventeen and a
half per cent of the employee’s
assessable income from the
employment.
(4) Subject to subsection (5), and
in addition to subsection (3), the
assessable income of an individual
for a year of assessment shall be
reduced by a contribution made by
the individual to the Social
Security Pension Scheme
established under the Social
Security Law, 1991 (P.N.D.C.L.
247) during the year.
(5) The reduction for
contributions referred to in
subsection (4) shall not exceed
the total of,
(a) with respect to each
employment,
(i)
seventeen and a half per cent of
the individual’s income from the
employment included in the
individual's assessable income for
the year; reduced by
(ii) any reduction in the
individual's assessable income for
the year under subsection (3); and
[As amended by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.12.]
(b) seventeen and a half per cent
of the individual's income from
each business included in the
individual's assessable income for
the year.
Section 61—Income of a Retirement
Fund
The income of a retirement fund
exempted under an enactment is
exempt from tax.
Section 62—Payments Made on
Retirement
(1) A pension or lump sum paid by
a resident person or a permanent
establishment of a non-resident
person in Ghana to an individual
on retirement on account of old
age, sickness, or other infirmity
is exempt from tax.
(2) A pension or lump sum payment
made by a retirement fund to a
member or a nominated beneficiary
of a member of the fund is exempt
from tax.
PART VIII—INTERNATIONAL
Section 63—Geographic Source of
Income
(1) The gains or profits from any
employment of a person shall be
treated as accruing in or derived
from Ghana to the extent to which
the employment is exercised in
Ghana, regardless of the place of
payment.
(2) Subject to subsection (3), the
gains or profits from a business
of
(a) a resident person shall be
treated as accruing in or derived
from Ghana, unless attributable to
a permanent establishment of the
resident person outside Ghana, or
(b) a non-resident person shall be
treated as accruing in or derived
from Ghana to the extent that the
gains or profits are attributable
to a permanent establishment of
the non-resident person in Ghana.
(3) The gross receipts of a
non-resident person who carries on
a business of ship operator,
charterer, or air transport
operator from
(a) the carriage of passengers who
embark, or
(b) mail, livestock, or goods
which are embarked,
in Ghana, other than as a result
of transhipment, shall be treated
as accruing in or derived from
Ghana.
(4) The gross receipts of a
non-resident person who carries on
a business of transmitting
messages by cable, radio, optical
fibre, or satellite communication
from the transmission of messages
by apparatus established in Ghana,
whether or not the messages
originated in Ghana, shall be
treated as accruing in or derived
from Ghana.
(5) A dividend is treated as
accruing in or derived from Ghana
where it is paid by a resident
company.
(6) Interest is treated as
accruing in or derived from Ghana
where
(a) the debt obligation giving
rise to the interest is secured by
real property located in Ghana;
(b) the interest is paid by a
resident person; or
(c) the interest is borne by a
permanent establishment of a
non-resident person in Ghana.
(7) Any charge, annuity,
management and technical service
fee, proceeds of a life insurance
policy, or pension or other
payment from a retirement fund is
treated as accruing in or derived
from Ghana where it is paid by a
resident person or is borne by a
permanent establishment of a
non-resident person in Ghana.
(8) A royalty is treated as
accruing in or derived from Ghana
where the royalty arises from
(a) the use of or right to use a
copyright of literary, artistic,
or scientific work (including
cinematograph films, or video or
audio tapes), patent, trade mark,
design or model, plan, or secret
formula or process in Ghana;
(b) the use of or right to use any
industrial, commercial, or
scientific equipment in Ghana;
(c) the use of or right to use
information concerning industrial,
commercial, or scientific
experience in Ghana;
(d) the rendering of, or the
undertaking to render, assistance
ancillary to a matter referred to
in paragraph (a), (b) or (c); or
(e) a total or partial forbearance
with respect to a matter referred
to in paragraph (a), (b), (c) or
(d).
(9) A natural resource payment is
treated as accruing in or derived
from Ghana where the payment is
made in respect of a natural
resource taken from Ghana.
(10) Rent is treated as accruing
in or derived from Ghana where the
rent is paid for the use of
personal property used or real
property situated in Ghana.
(11) Gross premiums, including
premiums on re-insurance, from
carrying on a short-term insurance
business in respect of the
insurance of a risk in Ghana are
treated as accruing in or derived
from Ghana.
(12) An income or inclusion in
ascertaining income, whether or
not mentioned in this section is
also treated as accruing in or
derived from Ghana to the extent
to which the income or inclusion
arises from an activity undertaken
in Ghana.
(13) An income or inclusion in
ascertaining income that is not
treated as accruing in or derived
from sources in Ghana is treated
as accruing or derived from
outside Ghana.
Section 64—Foreign Income from a
Separate Business or Investment
Where the income of a person from
a business or investment is partly
accruing in or derived from Ghana
and partly from outside Ghana, the
part which is accruing in or
derived from Ghana is treated as
income from a separate business or
investment from the part which is
accruing or derived from outside
Ghana.
Section 65—Income Attributable to
a Permanent Establishment
(1) Subject to subsection (2), the
gains or profits attributable to a
permanent establishment of a
non-resident person in Ghana shall
be calculated as those which the
permanent establishment might be
expected to make if it were a
distinct and separate person
engaged in the same or similar
activities under the same or
similar conditions and dealing
wholly independently with that
person of which it is a permanent
establishment.
(2) In ascertaining the gains or
profits attributable to a
permanent establishment of a
non-resident person in Ghana,
(a) no account shall be taken for
amounts charged, otherwise than
towards reimbursement of actual
expenses, by the permanent
establishment to the head office
of the non-resident person or any
of its other offices by way of
(i)
royalties, fees or other similar
payments in return for the use of
patents or other rights;
(ii) commission for specific
services performed or for
management; or
(iii) except in the case of a
banking business, interest on
moneys lent to the head office of
the non-resident person or any of
its other offices; and
(b) no deduction shall be allowed
in respect of amounts paid,
otherwise than towards
reimbursement of actual expenses,
by the permanent establishment to
the head office of the
non-resident person or any of its
other offices by way of
(i)
royalties, fees or other similar
payments in return for the use of
patents or other rights;
(ii) commission for specific
services performed or for
management; or
(iii) except in the case of a
banking business, interest on
moneys lent to the permanent
establishment.
Section 66—Branch Profits Tax
(1) A tax is hereby imposed, for
each year of assessment, on a
non-resident person carrying on
business in Ghana through a
permanent establishment which has
repatriated profits for a basis
period ending within the year.
(2) The tax payable by a
non-resident person under
subsection (1) is calculated by
applying the rate prescribed in
Part VI of the First Schedule to
the repatriated profits referred
to in that subsection.
Section 67—Taxation of
Non-Residents Providing Shipping,
Air Transport or
Telecommunications Services in
Ghana
(1) The assessable income for a
year of assessment of a
non-resident person who carries on
a business of ship operator,
charterer, or air transport
operator includes the gross
receipts derived during a basis
period ending within the year from
(a) the carriage of passengers who
embark, or
(b) mail, livestock or goods which
are embarked,
in Ghana, other than as a result
of transhipment.
(2) The assessable income for a
year of assessment of a
non-resident person who carries on
a business of transmitting
messages by cable, radio, optical
fibre, or satellite communication
includes the gross receipts
derived during a basis period
ending within the year from the
transmission of messages by
apparatus established in Ghana,
whether or not the messages
originated in Ghana.
(3) The gross receipts included in
a non-resident person's assessable
income under subsection (1) or (2)
shall be taxed at the rate
prescribed in Part VII of the
First Schedule and
(a) the gross receipts shall be
ignored in ascertaining the tax
payable with respect to any
remaining assessable income of
that person;
(b) no deduction shall be allowed
with respect to ascertaining that
remaining assessable income to the
extent to which the deduction
relates to the production of the
gross receipts; and
(c) no tax credits shall be
allowed to that person to reduce
the tax payable by that person
under this section with respect to
the gross receipts.
Section 68—Relief from Double
Taxation
(1) For the purposes of
ascertaining the income of a
person for a basis period accruing
or derived from outside Ghana,
there shall be deducted any
foreign income tax paid with
respect to the income.
(2) A resident person is entitled
to a credit for a year of
assessment, in this section
referred to as a "foreign tax
credit", for any foreign income
tax paid by that person to the
extent to which it is paid with
respect to that person's taxable
foreign income for the year.
(3) Foreign tax credits are
calculated separately for taxable
foreign income from each business,
employment, or investment and
shall not exceed the average rate
of Ghanaian income tax of that
person for the year of assessment
applied to that person's taxable
foreign income for the year from
each business, employment, or
investment.
(4) A person's assessable income
in respect of which that person is
entitled to a foreign tax credit
under subsection (2) is increased
by the amount of the foreign tax
credit.
(5) Where,
(a) the taxable foreign income of
a person for a year of assessment
includes a dividend, and
(b) as a result of a Double
Taxation Arrangement referred to
in section 111, credit is to be
granted for foreign income tax
paid with respect to the profits
from which the dividend is
distributed,
that person shall, for the
purposes of this section, be
treated as having paid with
respect to the dividend the
foreign income tax paid with
respect to the profits from which
the dividend is distributed.
(6) Subsections (2) and (4) do not
apply where a person elects to
relinquish a foreign tax credit.
(7) For the purposes of this
section,
“average rate of Ghanaian income
tax” of a person for a year of
assessment means the percentage
that the Ghanaian income tax
payable by that person for the
year, before any foreign tax
credit, is of the chargeable
income of that person for the
year;
"taxable foreign income" of a
person for a year of assessment
means that person's income from
any business, employment or
investment accruing or derived
from outside Ghana and included in
the assessable income of that
person for the year increased by
the amount referred to in
subsection (4).
PART IX—ANTI-AVOIDANCE
Section 69—Income Splitting
(1) Where a person attempts to
split income with another person,
the Commissioner may adjust the
chargeable income of both persons
to prevent a reduction in tax
payable as a result of the
splitting of income.
(2) A person is treated as having
attempted to split income where
(a) that person transfers income,
directly or indirectly, to an
associate; or
(b) that person transfers
property, including money,
directly or indirectly, to an
associate with the result that the
associate receives or enjoys the
income from that property,
and the reason or one of the
reasons for the transfer is to
lower the total tax payable upon
the income of that person and the
associate.
(3) In determining whether a
person is seeking to split income,
the Commissioner shall consider
the value given by the associate
for the transfer.
(4) A transfer of income or
property indirectly from a person
to an associate of that person
includes a transfer made through
the interposition of one or more
entities.
Section 70—Transfer Pricing
(1) In a transaction between
persons who are associates, the
Commissioner may distribute,
apportion, or allocate inclusions
in income, deductions, credits, or
personal reliefs between those
persons as is necessary to reflect
the chargeable income or tax
payable which would have arisen
for these persons if the
transaction had been conducted at
arm's length.
(2) Where,
(a) in the case of an associated
resident entity of a non-resident
person, the Commissioner is
satisfied that some adjustment is
warranted under subsection (1) of
section 69, or
(b) in the case of a permanent
establishment of a non-resident
person in Ghana, the Commissioner
is not satisfied with a return of
income of that person made under
section 72,
the Commissioner may adjust the
income of the permanent
establishment or entity for a
basis period so that it reflects
an amount calculated
(c) by reference to the total
consolidated income of the
non-resident person and all
associates of that non-resident
person, other than individuals but
irrespective of residence;
(d) by taking into account the
proportion which the turnover of
the permanent establishment or
entity bears to the total
consolidated turnover of the
non-resident person and those
associates; and
(e) by taking into account any
other relevant considerations in
determining the proportion of the
total consolidated income which
should be attributed to the
permanent establishment or entity.
(3) In making an adjustment under
subsections (1) or (2), the
Commissioner may re-characterise
the source of income and the
nature of any payment or loss as
revenue, capital, or otherwise.
Section 71—Thin Capitalisation
(1) Where an exempt-controlled
resident entity which is not a
financial institution has an
exempt debt-to-exempt equity ratio
in excess of 2 to 1 at any time
during a basis period, a deduction
is disallowed for any interest
paid or foreign currency exchange
loss incurred by that entity
during that period on that part of
the debt which exceeds the 2 to 1
being a portion of the interest or
loss otherwise deductible but for
this subsection.
(2) In this section
“exempt-controlled resident
entity” means a resident entity in
which fifty per cent or more of
the underlying ownership or
control of the entity is held by
an exempt person, in this section
referred to as the "exempt
controller", either alone or
together with an associate or
associates;
"exempt debt", in relation to an
exempt-controlled resident entity,
means the greatest amount, at any
time during a basis period, of the
sum of
(a) the balance outstanding at
that time on any debt obligation
owed by the exempt-controlled
resident entity to an exempt
controller or an exempt person who
is an associate of the exempt
controller with respect to which
(i)
interest is paid which is, or
(ii) in the case of a debt
obligation denominated in foreign
currency, any foreign currency
exchange loss incurred is, or if
incurred would be,
deductible to the
exempt-controlled resident entity
and the interest or foreign
currency exchange gain is not or
would not be included in
ascertaining assessable income of
the exempt controller or
associate; and
(b) the balance outstanding at
that time on a debt obligation
owed by the exempt-controlled
resident entity to a person other
than the exempt controller or an
associate of the exempt controller
where that person has a balance
outstanding of a similar amount on
a debt obligation owed by that
person to the exempt controller or
an exempt person who is an
associate of the exempt
controller;
“exempt equity”, in relation to an
exempt-controlled resident entity
and for a basis period, means the
sum of the following amounts:
(a) so much of any amount standing
to the credit of the capital
accounts of the entity at the
beginning of the period as the
exempt controller or an exempt
person who is an associate of the
exempt controller is entitled to
or would be entitled to if the
entity were wound up at that time;
and
(b) so much of the accumulated
profits and asset revaluation
reserves of the entity at the
beginning of the basis period as
the exempt controller or an exempt
person who is an associate of the
exempt controller is entitled to
or would be entitled to if the
entity were wound up at that time;
reduced by the sum of
(c) the balance outstanding at
the beginning of the period on a
debt obligation owed to the entity
by the exempt controller or an
exempt person who is an associate
of the exempt controller; and
(d) where the entity has
accumulated losses at the
beginning of the period, the
amount by which the return of
capital to the exempt controller
or an exempt person who is an
associate of the exempt controller
would be reduced by virtue of the
losses if the entity were wound up
at that time;
“exempt person” means
(a) a non-resident person; and
(b) a resident person for whom
interest paid to that exempt
person by the exempt-controlled
resident entity or for whom any
foreign currency exchange gain
realised with respect to a debt
claim against the
exempt-controlled resident entity
(i)
constitutes exempt income; or
(ii) is not included in
ascertaining the exempt person's
assessable income;
“resident entity” means a resident
partnership, resident company,
resident body of persons, or a
permanent establishment of a
non-resident person in Ghana.
PART X—PROCEDURE RELATING TO THE
INCOME TAX
Division I: Returns
Section 72—Furnishing of Return of
Income
(1) Subject to section 73, a
person shall furnish a return of
income for a year of assessment of
that person not later than four
months after the end of a basis
period of that person ending
within the year.
(2) A return of income shall be in
the form prescribed by the
Commissioner, shall state the
information required, and shall be
furnished in the manner prescribed
by the Commissioner.
(3) A return of income shall
include a declaration that the
return is complete and accurate
and shall be signed by the person
making the return.
(4) A person carrying on a
business shall furnish with that
person’s return of income a
separate statement of income and
expenditure and a statement of
assets and liabilities for each
business undertaking carried on
within that business by that
person.
(5) A person who, for
remuneration, prepares or assists
in the preparation of a return of
income, or a balance sheet,
statement of income and
expenditure, or any other document
submitted in support of a return
of another person, other than as
employee of the other person,
shall sign the return certifying
(6) Where a person refuses to sign
a certificate referred to in
subsection (5), that person shall
furnish the other person with a
statement in writing of the
reasons for the refusal and the
other person shall include that
statement with the return of
income to which the refusal
relates.
(a) that the books of account and
other relevant documentation of
the other person have been
examined, and
(b) that to the best of the
examiner's knowledge, the return
or document correctly reflects the
data and transactions to which it
relates.
(7) Where, during a basis period
(a) a person dies,
(b) a person becomes bankrupt, is
wound-up or goes into liquidation,
(c) a person is about to leave
Ghana indefinitely,
(d) a person is otherwise about to
cease activity in Ghana, or
(e) the Commissioner otherwise
considers it appropriate,
the Commissioner may, by notice in
writing, require that person or
that person's trustee, to furnish,
by the date specified in the
notice, a return of income for
that person for a period less than
the basis period.
(8) Where a person fails to
furnish a return of income as
required by this section, the
Commissioner may, by notice in
writing, appoint a person to
prepare and furnish the return,
and the return so furnished is
deemed, for the purposes of this
Act, to be the return of the
person originally required to
furnish the return.
(9) The Commissioner may, by
notice in writing, require the
person who furnished the return to
provide a fuller or further return
of income.
Section 73—Cases where Return of
Income Not Required
Unless requested by the
Commissioner by notice in writing,
a return of income shall not be
furnished under this Chapter for a
year of assessment
(a) by a non-resident person who
has no income accruing in or
derived from Ghana during a basis
period ending within the year or
where section 85 applies to that
person's income accruing in or
derived from Ghana during that
basis period; or
(b) by a resident individual
(i)
to whom subsection (7) of section
81 applies; or
(ii) who has no chargeable income
for the year or whose chargeable
income for the year is subject to
the nil rate of tax under Part I
of the First Schedule.
Section 74—Extension of Time to
Furnish a Return of Income
(1) A person required to furnish a
return of income under section 72
may apply in writing to the
Commissioner for an extension of
time to furnish the return.
(2) An application under
subsection (1) shall be made by
the due date for furnishing of the
return to which it relates.
(3) Where an application is made
under subsection (1), the
Commissioner, if satisfied as to
the inability of that person to
furnish the return by the due date
because of absence from Ghana,
sickness, or other reasonable
cause, may, by notice in writing,
grant that person an extension of
time for furnishing the return of
a period not exceeding two months.
(4) A person dissatisfied with a
decision under subsection (3) may
only challenge the decision under
the objection and appeal procedure
in Division II of Part III of
Chapter IV as though a reference
in that Division to an assessment
were a reference to that decision.
[As amended by the Internal
Revenue (Amendment) Act, 2003 (Act
644), s. 1].
(5) The granting of an extension
of time under this section does
not alter the due date for payment
of tax under section 134.
Section 75—Definition
In this Division, a reference to a
person includes a reference to a
partnership.
Division II: Assessments
Section 76—Provisional Assessments
(1) Subject to section 78, the
Commissioner may as soon as may be
after the commencement of each
basis period of a person who pays
tax by instalments proceed to make
a provisional assessment computed
according to the Commissioner's
best judgement on that persons
chargeable income,
(2) A provisional assessment shall
not affect a liability otherwise
incurred by that person by reason
of failure or neglect to deliver a
return.
(3) Where a provisional assessment
is made under this section, the
Commissioner shall serve a notice
of the assessment on that person
stating
(a) the estimated chargeable
income,
(b) the estimated tax payable,
(c) the amount and timing of tax
instalments to be paid in
accordance with section 80, and
(d) the time, place, and manner of
objecting to the assessment.
(4) Where the Commissioner
discovers or is of the opinion at
any time that a person liable to
tax has not been assessed under
subsection (1), the Commissioner
may, within the year and as often
as may be necessary assess that
person at such amount as according
to his best judgement ought to
have been charged and the
provisions of subsections (2) and
(3) together with the provisions
of this Act as to notice of
assessment, appeal and other
proceedings shall apply to that
assessment and to the tax charged.
Section 77—Final Assessments
(1) Subject to section 78, the
Commissioner shall, based on a
person's return of income and on
any other information available,
make a final assessment of the
chargeable income of that person
and the tax payable on that
assessment.
(2) Where
(a) a person defaults in
furnishing a return of income for
a year of assessment, or
(b) the Commissioner is not
satisfied with a return of income
for a year of assessment furnished
by a person,
the Commissioner may, according to
the Commissioner's best judgement,
make a final assessment of the
chargeable income of that person
and the tax payable on that income
for the year.
(3) The Commissioner shall, on
making an assessment under
paragraph (b) of subsection (2),
include with the assessment a
statement of reasons as to why the
Commissioner is not satisfied with
the return.
(4) In the circumstances specified
in subsection (7) of section 72,
in lieu of requiring a return of
income, the Commissioner may,
according to the Commissioner's
best judgement, make a final
assessment of the chargeable
income of that person and the tax
payable on that assessment for the
year of assessment during which
the basis period ends.
(5) The Commissioner shall not
assess a person for a year of
assessment who, as a result of the
operation of section 73, is not
required to furnish a return of
income for the year.
(6) Where a final assessment is
made under this section, the
Commissioner shall serve a notice
of the assessment on that person
stating
(a) the amount of chargeable
income,
(b) the amount of tax payable,
(c) the amount of tax paid, if
any, and
(d) the time, place, and manner of
objecting to the assessment.
Section 78—Self-Assessment
(1) This section only applies to
those persons specified in a
notice published in the Gazette or
in the print media by the
Commissioner as persons to which
this section is to apply for a
year of assessment.
(2) A person who pays tax by
instalments shall furnish an
estimate of
(a) the chargeable income to be
derived by that person for a year
of assessment in respect of which
tax is or may be payable by that
person by instalments under
section 80; and
(b) the tax to be payable with
respect to that chargeable income.
(3) The estimate under subsection
(2) shall be in the form
prescribed by the Commissioner and
shall be furnished to the
Commissioner on or before the
commencement of a basis period of
that person which will end within
the year of assessment.
(4) The estimate under subsection
(2) shall remain in force for the
whole of the basis period to which
it relates unless that person
furnishes a revised estimate to
the Commissioner together with a
statement of reasons for the
revision.
(5) The revised estimate under
subsection (4) shall only apply to
the calculation of the tax payable
by that person by instalments
after the date the revised
estimate is furnished to the
Commissioner.
(6) Subject to subsection (7),
where a person
(a) furnishes an estimate in
accordance with subsection (2) or
a revised estimate in accordance
with subsection (4), or
(b) furnishes a return of income
for a year of assessment,
the Commissioner is deemed to have
made a provisional assessment or
final assessment, as the case
requires, of the chargeable income
of that person and the tax payable
on that chargeable income for the
year, shall be those respective
amounts shown in the estimate or
return.
(7) Where a person who pays tax by
instalments fails to furnish an
estimate as required by
subsections (2) and (3) or the
Commissioner is not satisfied with
the estimate or revised estimate
furnished then subsection (6) of
this section shall not apply to
the estimate or revised estimate
and the Commissioner may make a
provisional assessment in
accordance with section 76.
(8) Where subsection (6) applies,
that person's estimate or return
of income is treated as a notice
of assessment served on that
person by the Commissioner on the
due date for furnishing of the
estimate or return or on the
actual date the estimate or return
is furnished, whichever is the
later.
Section 79—Additional Assessments
(1) Subject to subsections (2) and
(3), the Commissioner may, within
three years after service of a
notice of assessment, make an
additional assessment amending an
assessment previously made.
(2) Where the need to make an
additional assessment arises by
reason of fraud or a gross or
wilful neglect by, or on behalf
of, a person or the discovery of
new information in relation to the
tax payable for any year of
assessment, the Commissioner may
make an additional assessment for
that year at any time.
(3) The Commissioner shall not
make an additional assessment
amending a previous assessment if
the previous assessment has been
amended or reduced pursuant to an
order of the High Court unless
that order is obtained by fraud.
(4) An additional assessment shall
be treated in all respects as an
assessment under this Act.
Division III: Payment of Tax
Subdivision A: Tax Instalments
Section 80—Payment of Tax by
Instalments
(1) Subject to subsection (4), a
person who derives or expects to
derive an assessable income for a
year of assessment which is not or
will not be subject to withholding
of tax at source under Subdivision
B is liable to pay tax under this
section by quarterly instalments.
(2) A person liable to pay tax
under subsection (1) in respect of
a basis period ending within the
year of assessment, shall pay
instalments of tax,
(a) in the case of a person whose
basis period is a twelve month
period beginning at the start of a
calendar month, on or before the
last day of the third, sixth,
ninth, and twelfth months of the
basis period, or
(b) in any other case, at the end
of each three month period
commencing at the beginning of the
basis period and a final
instalment on the last day of the
period unless it coincides with
the end of such a three month
period.
(3) For the purposes of subsection
(2), the amount of each instalment
of tax for a basis period is
calculated according to the
following formula:
A
— B
C
Where,
A
is the estimated tax payable by
the tax payer for the period at
the time of the instalment under
the most recent provisional
assessment made under section 76
or 78; and
B
is the amount of any tax paid
during the period but prior to the
due date for payment of the
instalment
(a) by prior instalment under
this section; or
(b) withheld under Subdivision B
from any amounts derived by that
person during the period which
will be included in ascertaining
the assessable income of that
person for the year of assessment
in which the period ends.
C
is the number of instalments
remaining for the period including
the current instalment;
(4) Regulations made under section
114 may prescribe that a
particular class of persons shall
pay tax by instalments otherwise
than or in substitution for
instalments payable under
subsection (1).
(5) Regulations made under
section 114 may provide
(a) that a particular or
particular class of organised
association or recognised
occupational group shall collect
from its members any tax payable
by those members by instalment
under subsection (4);
(b) the terms and conditions which
shall apply to the collection of
that tax; and
(c) the terms and conditions on
which the association or group
shall account to the Commissioner
for that tax.
(6) A person who fails to make an
instalment payment to an
association or group as provided
by Regulations made under
subsection (5) shall be treated as
having failed to pay the
instalment by the due date.
(7) Upon a written application by
a person who pays tax by
instalments the Commissioner may,
where good cause is shown, extend
the due date for payment of an
instalment of tax or allow for
payment of the instalment in equal
or varying amounts.
(8) An instalment of tax is due
and payable on the date by which
the instalment is to be paid.
(9) An instalment of tax shall be
credited against the tax assessed
to the person who pays tax by
instalments for the year of
assessment in which the basis
period to which the instalment
relates ends.
Subdivision B: Withholding of Tax
at Source
Section 81—Withholding of Tax by
Employers
(1) An employer shall withhold tax
from the payment of an amount to
be included in ascertaining the
income of an employee from the
employment as prescribed by
Regulations made under section
114.
(2) The obligation of an employer
to withhold tax under subsection
(1) is not reduced or extinguished
because the employer has a right,
or is otherwise under an
obligation, to deduct and withhold
any other amount from those
payments.
(3) The obligation of an employer
to withhold tax under subsection
(1) applies notwithstanding any
other law which provides that the
income from employment of an
employee shall not be reduced or
subject to attachment.
(4) An employer shall, not later
than the 31st of March following
the end of every year of
assessment, furnish a return with
respect to each person employed by
the employer who derives
assessable income for the year
from the employment.
(5) The return referred to in
subsection (4) shall be in the
form and furnished in the manner
prescribed by the Commissioner and
shall contain the following
information:
(a) the amount of assessable
income derived by the employee
from the employment;
(b) the amount of tax withheld
from that income under subsection
(1) and the manner in which it is
calculated, including the
deductions under sections 39, 57,
and 60 which are taken into
account; and
(c) in the case of an employee to
whom subsection (7) applies, the
employee's chargeable income and
tax payable with respect to that
income.
(6) At the time of furnishing the
return under subsection (4), an
employer shall serve on each
employee an extract of the return,
in the form prescribed by the
Commissioner, which extract shall
also state, in the case of an
employee to whom subsection (7)
applies,
(a) that the extract is an
assessment, and
(b) the time, place, and manner of
objecting to the assessment.
(7) In the case of an employee
whose assessable income for a year
of assessment consists exclusively
of income from an employment, the
extract served under subsection
(6) is treated as an assessment
served on the employee by the
Commissioner.
Section 82—Payment of Interest to
Resident Persons
(1) Subject to subsection (2), a
resident person who pays interest
to another resident person shall
withhold tax on the gross amount
of the payment at the rate
prescribed in Part IV of the First
Schedule.
(2) This section does not apply to
(a) interest paid by an
individual, and
(b) interest paid which is exempt
from tax.
Section 83—Payment of Dividends to
Resident Shareholders
(1) Subject to subsection (3), a
resident company which pays a
dividend to a resident shareholder
shall withhold tax on the gross
amount of the payment at the rate
prescribed in Part IV of the First
Schedule.
(2) Subsection (3) of section 2
applies to this section.
(3) This section does not apply
where the dividend is exempt from
tax.
Section 84—Payment to Residents
for Goods and Services
(1) Subject to section 81, where a
resident person, other than an
individual, pays
(a) fees to a resident part-time
teacher, lecturer, examiner,
examinations invigilator, or
examinations supervisor,
(b) fees, emoluments, and any
other benefit, including a benefit
referred to in section 53, to a
resident director, manager, or
board member of a company or body
of persons,
(c) a commission to a resident
insurance, sales, or canvassing
agent,
(d) endorsement fees to a resident
person, or
(e) a commission to a resident
lotto receiver or agent,
the person making the payment
shall withhold tax on the gross
amount of the payment at the rate
prescribed in Part IV of the First
Schedule.
(2) Subject to subsection (4),
where a resident person pays a sum
to another resident person which
does not fall within subsection
(1),
(a) for the supply or use of goods
or property of any kind, or
(b) for the supply of any
services, [As amended by the
Internal Revenue (Amendment) Act,
2002 (Act 622), s.13.]
in respect of a contract between
the payee and a resident person
other than an individual exceeding
fifty currency points, the person
making the payment shall withhold
tax on the gross amount of the
payment at the rate prescribed in
Part IV of the First Schedule.
(3) For the purpose of determining
under subsection (2) whether a
contract exceeds fifty currency
points, two or more contracts in
respect of the same goods,
property or services shall be
treated as a single contract.
(4) Subsection (2) does not apply
(a) to payments under a contract
for the sale of goods which
constitute trading stock of both
the vendor and the purchaser; or
(b) where the Commissioner,
(i)
for a good cause shown, exempts in
writing a person from deducting
tax under that subsection in
respect of an institution or a
specific contract entered into by
an institution upon an application
made by the institution; or
(ii) is satisfied that a person
has a satisfactory tax record and
exempts in writing that person
from the application of that
subsection or exempts specific
contracts entered into by that
person from that application.
(5) A person provided with an
exemption under paragraph (b) of
subsection (4) shall, at the end
of every calendar quarter, submit
a list of particulars of all
payments which would have fallen
within subsection (2) but for the
exemption.
Section 85—Payments to
Non-Residents Under Section 3
(1) A person making a payment to a
non-resident person of the kind
referred to in subsection (1) of
section 3 shall withhold tax on
the gross amount of the payment at
the appropriate rate prescribed in
Part V of the First Schedule.
(2) Subsection (3) of section 2
applies to this section.
(3) This section does not apply
where the payment is exempt from
tax.
Section 86—Payment to
Non-Residents for Goods and
Services
(1) Subject to section 81, a
person who enters into a contract
with a non-resident person for,
(a) the supply or use of goods or
property of any kind, or
(b) the supply of any services,
which contract gives rise to
income accruing in or derived from
Ghana, shall, within thirty days
of the date of entering into the
contract, notify the Commissioner
in writing of,
(c) the nature of the contract;
(d) the likely duration of the
contract;
(e) the name and postal address
of the non-resident person to whom
payments under the contract are to
be made; and
(f) the total amount estimated to
be payable under the contract to
the non-resident person.
(2) The Commissioner may, by
notice in writing served on the
person who has notified the
Commissioner under subsection (1),
require that person to withhold
tax from a payment made under the
contract at the rate specified in
Part VIII of the First Schedule.
(3) Subsection (2) does not apply
to a payment of the kind referred
to in subsection (1) of section 3.
Section 87—Payment of Tax Withheld
(1) Subject to subsection (2), a
withholding agent shall pay to the
Commissioner a tax that has been
withheld or that should have been
withheld under this Subdivision
within fifteen days after the end
of the month in which the payment
subject to withholding tax is made
by the withholding agent.
(2) Where a person is required to
withhold tax from a payment under
subsection (2) of section 86, the
tax shall be paid to the
Commissioner at the time specified
in the Commissioner's notice.
(3) An amount withheld under this
Subdivision is treated as if it
were tax due and payable on the
date referred to in subsection (1)
or (2).
(4) Subject to sections 10(2) and
84(4) a provision in an agreement
which prohibits the deductions or
withholding of a tax required to
be deducted or withheld under this
Act or any other enactment
administered by the Commissioner
is void.
Section 88—Failure to Withhold Tax
(1) A withholding agent who fails
to withhold tax in accordance with
this Subdivision is personally
liable to pay to the Commissioner
the amount of tax which has not
been withheld, but the withholding
agent is entitled to recover this
amount from the payee.
(2) The liability imposed by
subsection (1) is treated as if it
were tax due and payable on the
date referred to in subsection (1)
or (2) of section 87.
Section 89—Tax Credit Certificates
(1) The Commissioner shall, upon
receipt of an amount paid under
section 87, issue to the
withholding agent in favour of the
payee a tax credit certificate in
the form prescribed by the
Commissioner stating the amount
deducted.
(2) A withholding agent shall
deliver to the payee a tax credit
certificate setting out the amount
of tax withheld under this
Subdivision together with a
statement of the amount of the
payment from which tax has been
withheld.
(3) A payee who is required to
furnish a return of income shall
attach to the return the tax
credit certificate or certificates
supplied to the payee for a basis
period of the payee ending within
the year of assessment for which
the return is filed.
Section 90—Record of Payments and
Tax Withheld
(1) A withholding agent shall
maintain, and make available for
inspection by the Commissioner,
records showing, in relation to
each year of assessment,
(a) payments made to a payee, and
(b) tax withheld from those
payments.
(2) The records referred to in
subsection (1) shall be kept by
the withholding agent for five
years of assessment after the end
of the year of assessment to which
the records relate.
(3) The Commissioner may require a
withholding agent to submit a
return of the records to be
maintained under subsection (1) in
the manner, form and at the
intervals prescribed by the
Commissioner.
Section 91—Priority of Tax
Withheld
(1) Tax withheld by a withholding
agent under this Subdivision
(a) is held by the withholding
agent in trust for the Service;
(b) is not subject to attachment
in respect of a debt or liability
of the withholding agent; and
(c) in the event of the
liquidation or bankruptcy of the
withholding agent, does not form a
part of the estate in liquidation,
assignment, or bankruptcy and the
Commissioner has a first claim
before any distribution of
property is made.
(2) An amount which a withholding
agent is required under this
Subdivision to withhold from a
payment is
(a) a first charge on that
payment, and
(b) withheld prior to any other
deduction which the withholding
agent may be required to make by
virtue of an order of any court or
any other law.
Section 92—Adjustment on
Assessment and Withholding Agent's
Indemnity
(1) Tax withheld under this
Subdivision is included in
ascertaining income of the payee.
(2) A withholding agent who has
withheld tax under this
Subdivision and remitted the
amount withheld to the
Commissioner is treated as having
paid the withheld amount to the
payee for the purposes of a claim
by the payee for payment of the
amount withheld.
(3) Tax withheld from a payment
under this Subdivision is deemed
to have been paid by the payee
and, except in the case of a tax
that is a final tax under section
4, is credited against the tax
assessed on the payee for the year
of assessment in which the basis
period of the person ends, being
the period in which the payment is
made.
Section 93—Definitions
In this Subdivision,
“payee” means a person receiving
payments from which tax is
required to be withheld under this
Subdivision;
“person” includes a partnership;
“resident person” includes a
permanent establishment of a
non-resident person in Ghana;
“withholding agent” means a person
obliged to withhold tax under this
Subdivision.
PART XI—INTERPRETATION
Section 94—Definitions
In this Chapter, unless the
context otherwise requires,
“accruing in or derived from”
Ghana or outside Ghana with
respect to income has the meaning
in section 63;
"basis period" means the period by
reference to which assessable
income of any person is computed
in accordance with the provisions
of this Act;
"beneficiary", in relation to a
body of persons, means any
beneficiary, member, owner, or any
other person who has a right,
including a contingent right, to
participate in the income or
capital of that body;
"debt claim" means a right to
receive a repayment of money from
another person arising in the
course of carrying on a business,
including deposits with a
financial institution, accounts
receivable, promissory notes,
bills of exchange, or bonds;
"dividends" includes
(a) a capitalisation of profits,
whether by way of a bonus share
issue or increase in the amount
paid-up on shares, or otherwise
involving a credit of profits to
the share capital or share premium
account; or
(b) an amount derived by a
shareholder from a company
(i)
in the course of liquidation or
reconstruction, or
(ii) with respect to a reduction
of share capital or share buy
back,
but only to the extent that the
amount is not debited to the
company's share capital or share
premium account;
“employee” means an individual
engaged in employment;
“employer” means a person who
employs or remunerates an
employee;
“employment” means
(a) the position of an individual
in the employment of another
person;
(b) the holding of or acting in
any office or a position entitling
the holder to a fixed or
ascertainable remuneration other
than an office or position as
director of a company or manager
of a body of persons;
“exempt organisation” means a
person
(a) who or that is and functions
as
(i)
a religious, charitable, or
educational institution of a
public character;
(ii) a body of persons formed for
the purpose of promoting social or
sporting amenities;.
(iii) a trade union registered
under the Trade Unions Ordinance
(Cap. 91);
(iv) an institution or trust of a
public character established by an
enactment solely for the purposes
of scientific research; or
(v) registered sporting club;
(b) who or that has been issued
with a written ruling by the
Commissioner currently in force
stating that it is an exempt
organisation; and
(c) none of whose income or assets
confers, or may confer, a private
benefit, other than in pursuit of
the organisation's function
referred to in paragraph (a);
"financial institution" means
(a) a bank regulated under the
Banking Law, 1989 (P.N.D.C.L.
225);
(b) a non-banking financial
institution regulated under the
Financial Institutions
(Non-Banking) Law, 1993 (P.N.D.C.L.
328); and
(c) any other category of persons
prescribed by Regulations made
under section 114;
"foreign income tax" includes a
foreign withholding tax, but does
not include a foreign tax designed
to raise the level of the tax on
the income so that taxation by the
country of residence is reduced;
"insurance business" means the
business of, or in relation to the
issue of, or the undertaking of
liability under, life policies, or
to make good or indemnify the
insured against any loss or
damage, including liability to pay
damages or compensation contingent
upon the happening of a specified
event;
"investment" means a manner in
which a person may derive gains,
profits, or income, other than
from a business or employment;
"life insurance business" means
the business of
(a) effecting, carrying out, and
issuing policies on human life or
contracts to pay annuities on
human life; or
(b) effecting, carrying out, and
issuing contracts of insurance
against the risk of the person
insured sustaining injury or dying
as the result of an accident or of
an accident of a specific class,
or becoming incapacitated in
consequence of disease or of
diseases of specified classes,
being contracts that are expressed
to be in effect for a period of
not less than five years or
without limit of time and either
are not expressed to be terminable
by the insurer before the expiry
of five years from taking effect
or are expressed to be so
terminable before the expiry of
that period only in special
circumstances specified in the
contract; or
(c) effecting, carrying out, and
issuing of insurance whether
effected by the issue of policies,
bonds, endowment certificates, or
otherwise, whereby, in return for
one or more premiums paid to the
insurer, an amount or series of
amounts is to become payable to
the insured in the future, not
being contracts as fall within
paragraph (a) or (b) above;
“management and technical services
fee” means a payment of any kind
to a person, other than to an
employee of the person making the
payment, in consideration for any
services of a managerial,
technical, or consultancy nature;
“manager”, in relation to a body
of persons, means any member,
councillor, director, manager,
officer, or any other person who
participates in making, whether
alone or jointly with other
persons, managerial decisions on
behalf of the body, and the
trustee of a trust;
“natural resource payment” means
(a) a payment, including a premium
or like amount, for the right to
take minerals or a living or
non-living resource from real
property or the sea; or
(b) a payment calculated in whole
or part by reference to the
quantity or value of minerals or a
living or non-living resource
taken from real property or the
sea;
“rent” means a payment, including
a payment of a premium or like
amount, for the use of, or right
to use, property of any kind but
does not include a natural
resource payment or a royalty;
"retirement fund" means a pension,
provident, retirement,
superannuation or similar fund
established as a permanent fund
maintained solely for either or
both of the following purposes:
(a) the provision of benefits for
members of the fund in the event
of retirement;
(b) the provision of benefits for
dependants of members in the event
of the death of the member; and
the Social Security Pension Scheme
established under the Social
Security Law, 1991 (P.N.D.C.L.
247);
“royalties” means any payment,
including a payment of a premium
or like amount, derived as
consideration for
(a) the use of or right to use a
copyright of literary, artistic,
or scientific work, including
cinematograph films, or video or
audio tapes whether the work is in
electronic format or otherwise;
(b) the use of or right to use a
patent, trade mark, design or
model, plan, or secret formula or
process;
(c) the use of or right to use
any industrial, commercial, or
scientific equipment;
(d) the use of or right to use
information concerning industrial,
commercial, or scientific
experience;
(e) the rendering of, or the
undertaking to render, assistance
ancillary to a matter referred to
in paragraphs (a), (b), (c) and
(d); or
(f) a total or partial forbearance
with respect to a matter referred
to in paragraphs (a), (b), (c),
(d) and (e);
"short-term insurance business"
means any insurance business which
is not a life insurance business;
"tax" means tax levied under this
Chapter;
"trading stock" includes anything
produced, manufactured, purchased,
or otherwise acquired for sale or
exchange;
"turnover" means the total
receipts in money or moneys' worth
from a business without deduction
for customs duty or import duty or
excise duty but not including
vehicle purchase tax or value
added tax paid directly to the
Commissioner of Customs, Excise
and Preventive Service or the
Commissioner of Value Added Tax
Service.
CHAPTER II
CAPITAL GAINS TAX
PART I—IMPOSITION OF CAPITAL GAINS
TAX
Section 95—Imposition and Rate of
Capital Gains Tax
(1) Subject to subsection (2),
capital gains tax is payable by a
person at the rate of ten per cent
of capital gains accruing to or
derived by that person from the
realisation of a chargeable asset
owned by that person.
(2) Capital gains tax is not
payable on capital gains from the
realisation of a chargeable asset
falling within paragraph (b) of
subsection (1) of section 97
unless and until those gains are
brought into or received in Ghana.
PART II—REALISATION
Section 96—Realisation
(1) Subject to subsection (2), a
person who owns a chargeable asset
is treated as realising the asset
where
(a) that person parts with
ownership of the asset including
where the asset is
(i)
sold, exchanged, surrendered, or
distributed by the owner of the
asset, or
(ii) redeemed, destroyed or lost;
(b) that person begins to use the
asset in such a way that it ceases
to be a chargeable asset; or
(c) that person is a resident who
becomes a non-resident but only
with respect to chargeable assets
referred to in paragraph (b) of
subsection (1) of section 97.
(2) For the purposes of this Act,
a realisation of a chargeable
asset does not include a
realisation by way of gift within
the meaning of Chapter III or a
realisation involving the disposal
of shares in the course of the
liquidation of a company.
PART III—CHARGEABLE ASSET
Section 97—Chargeable Asset
(1) Subject to subsection (3),
chargeable asset means,
(a) any of the following assets:
(i)
buildings of a permanent or
temporary nature situated in
Ghana;
(ii) business and business assets,
including goodwill, of a permanent
establishment situated in Ghana;
(iii) land situated in Ghana;
(iv) shares of a resident company;
(v) part of, or any right or
interest in, to or over any of the
assets referred to in
sub-paragraphs (i) to (iv); and
(b) to the extent that they are
not chargeable assets as a result
of paragraph (a), any of the
following assets of a resident
person:
(i)
buildings of a permanent or
temporary nature wherever
situated;
(ii) business and business assets,
including goodwill, wherever
situated;
(iii) land wherever situated;
(iv) shares of a company;
(v) part of, or any right or
interest in, to or over any of the
assets referred to in
sub-paragraphs (i) to (iv).
(2) Regulations made under section
114 may add to the categories of
chargeable asset in either
paragraph (a) or (b) of subsection
(1).
(3) Chargeable asset does not
include
(a) securities of a company listed
on the Ghana Stock Exchange during
the fifteen years after the
establishment of the Ghana Stock
Exchange;
(b) agricultural land situated in
Ghana; and
(c) trading stock or a Class 1, 2,
3, or 4 depreciable asset.
PART IV—CALCULATION OF CAPITAL
GAIN
Section 98—Calculation of Capital
Gain
The amount of a capital gain
accruing to or derived by a person
from the realisation of a
chargeable asset owned by that
person is the excess of the
consideration received by that
person from the realisation over
the cost base at the time of
realisation.
Section 99—Cost Base
(1) The cost base of a chargeable
asset owned by a person at a
particular time equals the sum of
(a) the costs, including
incidental costs and, where
relevant, the cost of construction
or production, incurred by the
person in acquiring ownership of
the asset,
(b) the costs incurred by that
person on alteration and
improvement of the asset between
the date of its acquisition and
the date of its realisation, and
(c) the costs incurred by that
person in realising the asset.
(2) For the purposes of subsection
(1), where, as a result of a
person acquiring ownership of a
chargeable asset, that person is
treated under Chapter I as
deriving an amount of income, that
person shall be treated as having
incurred in acquiring ownership of
the asset an additional cost equal
to the amount of the income.
(3) A person who acquires
ownership of a chargeable asset in
a non-arm's length transaction is
treated as having incurred in
acquiring that ownership a cost
equal to the market value of the
asset at the date of acquisition.
(4) Where a person who owns an
asset, which is not a chargeable
asset, begins to use the asset in
such a way that it becomes a
chargeable asset, that person is
treated as having incurred in
acquiring ownership of the asset a
cost equal to the market value of
the asset at the date that person
begins to so use the asset.
(5) Where a non-resident person
who owns one or more assets, which
are not chargeable assets, becomes
a resident and, as a result, the
assets become chargeable assets,
that person is treated as having
incurred in acquiring ownership of
each asset a cost equal to the
market value of the asset at the
time of becoming resident.
(6) Where a capital gain is exempt
as a result of paragraph (b), (c),
or (d) of subsection (1) of
section 101, the person acquiring
ownership of the asset is treated
as having incurred in acquiring
that ownership a cost equal to the
cost base of the asset of the
former owner at the time of
realisation.
(7) Where a capital gain, or part
thereof, is exempt as a result of
paragraph (e) or (f) of subsection
(1) of section 101, the person
acquiring ownership of the
replacement asset is treated as
having incurred in acquiring that
ownership a cost equal to the cost
base of the asset realised at the
time of realisation.
(8) Where a part of a chargeable
asset owned by a person is
realised, the cost base of the
asset is apportioned between the
part of the asset retained and the
part realised in accordance with
their respective market values at
the time of realisation but the
costs incurred in realisation
shall not be so apportioned.
Section 100—Consideration Received
(1) The consideration received or
receivable by a person from the
realisation of a chargeable asset
owned by that person is equal to
the sum of all amounts received or
receivable by that person or an
associate in respect of the
realisation.
(2) Where a person who owns a
chargeable asset realises it by
way of transfer to an associate or
in a non-arm's-length transaction,
that person is treated as having
received consideration from the
realisation of an amount equal to
the market value of the asset at
the time of realisation.
(3) Where a resident person
becomes a non-resident and, as a
result, is treated as realising a
chargeable asset in accordance
with paragraph (c) of subsection
(1) of section 96, that person
shall be treated as receiving as
consideration from the realisation
the market value of the asset at
that time.
(4) Where a chargeable asset and
one or more other assets are
realised in a single transaction
and the consideration received for
each asset is not specified, the
total consideration received from
the realisation is apportioned
among the assets in proportion to
their market values at the time of
the transaction.
Section 101—Exemption from Capital
Gain
(1) The following capital gains
from the realisation of a
chargeable asset are exempt:
(a) capital gains of a person up
to a total of fifty currency
points per year of assessment;
(b) capital gains accruing to or
derived by a company arising out
of a merger, amalgamation, or
re-organisation of the company
where there is continuity of
underlying ownership in the asset
of at least twenty five per cent;
(c) capital gains resulting from a
transfer of ownership of the asset
by a person to that person's
spouse, child, parent, brother,
sister, aunt, uncle, nephew or
niece;
(d) capital gains resulting from a
transfer of ownership of the asset
between former spouses as part of
a divorce settlement or a genuine
separation agreement;
(e) capital gains where the amount
received on realisation is, within
one year of realisation, used to
acquire a chargeable asset of the
same nature (referred to as the
"replacement asset"); and
(f) where part only of the amount
received on realisation is used in
the manner referred to in
paragraph (e), any part of the
capital gain represented by the
amount used to acquire the
replacement asset less the cost
base of the asset realised at the
time of realisation.
(2) The Commissioner may extend
the period of one year for the
purposes of paragraphs (e) and (e)
of subsection (1) where, having
regard to the circumstances of a
particular case, it is fair and
reasonable to do so.
PART V—PROCEDURE RELATING TO
CAPITAL GAINS TAX
Section 102— Returns and Payment
of Tax
(1) Subject to subsection (3), a
person who accrues or derives a
capital gain from the realisation
of a chargeable asset shall,
thirty days after the realisation,
furnish the Commissioner with a
return in writing containing the
following information:
(a) the description and location
of the chargeable asset;
(b) the cost base of the asset
immediately prior to the
realisation and how that cost base
is calculated;
(c) the consideration received by
that person from the realisation;
(d) the amount of any capital gain
and tax payable with respect to
that capital gain and tax;
(e) the full name and address of
the new owner of the asset; and
(f) other information prescribed
by Regulations made under section
114.
(2) Subject to subsection (3), a
person who brings into or receives
in Ghana a capital gain of the
type referred to in subsection (2)
of section 95 shall, within thirty
days, furnish the Commissioner
with a return in writing
containing the following
information:
(a) the amount of the capital gain
brought into or received in Ghana
and tax payable with respect to
that amount; and
(b) other information prescribed
by Regulations made under section
114.
(3) Subsections (1) and (2) do not
apply where the capital gain
referred to in those subsections
together with any other capital
gains from the realisation of
chargeable assets referred to in
(a) subsection (1) of section 95
accruing to or derived by, and
(b) subsection (2) of section 95
brought into or received in Ghana
by,
that person during the same year
of assessment does not exceed in
total fifty currency points.
(4) Where a person is required to
furnish a return under subsections
(1) or (2); that person shall
remit to the Commissioner the
amount of tax calculated as
payable and the payment of tax is
due at that time.
Section 103—Assessments and
Application of Income Tax
Procedure
(1) Subject to subsection (2), the
Commissioner shall, based on a
person's return furnished under
section 102 and on any other
information available, make an
assessment of the amount of any
capital gain of that person and
the tax payable on that amount
within one year from the date the
return is furnished.
(2) Where section 78 applies to a
person and that person furnishes a
return under section 102, the
Commissioner is deemed to have
made an assessment of any capital
gain of that person and the tax
payable on that assessment, being
those respective amounts shown in
the return.
(3) Except to the extent that they
are inconsistent with section 102
and subsections (1) and (2) of
this section, sections 72 to 79
apply, with the necessary
modifications to give full effect
to this Chapter, to returns and
assessments under that section and
those subsections as though
(a) references to a return of
income were replaced with
references to a return under
section 102; and
(b) references to chargeable
income were replaced with
references to capital gains liable
to charge under section 95.
PART VI—INTERPRETATION
Section 104—Definitions
(1) In this Chapter, unless the
context otherwise requires,
"amounts received or receivable"
from the realisation of a
chargeable asset means money and
the market value of a property
received or to be received in
respect of the realisation;
“capital gain” with respect to the
realisation of a chargeable asset
means the amount computed in
accordance with section 98;
“costs incurred” in acquiring
ownership of a chargeable asset
means money paid and the market
value of a given property;
"owner" with respect to a
chargeable asset means,
(a) in the case of an asset held
by a partnership, the partners;
and
(b) in the case of an asset held
by a company or body of persons,
that company or that body only;
"tax" means tax levied under this
Chapter.
(2) Section 34 applies for the
purposes of this Chapter.
CHAPTER III
GIFT TAX
PART I—IMPOSITION OF TAX
Section 105—Imposition of Tax
(1) Subject to subsection (2),
gift tax at the rate specified in
the Fourth Schedule is payable by
a person on the total value of
taxable gifts received by that
person by way of gift within a
year of assessment.
(2) The total value referred to in
subsection (1) does not include
the value of a taxable gift
received
(a) by that person under a will or
upon intestacy;
(b) by that person from that
person's spouse, child, parent,
brother, sister, aunt, uncle,
nephew, or niece; [As amended by
the Internal Revenue (Amendment)
Act, 2002 (Act 622), s.14.]
(c) by a religious body which uses
the gift for the benefit of the
public or a section of the public;
or
(d) for charitable purposes. [As
amended by the Internal Revenue
(Amendment) Act, 2003 (Act 644),
s. 2].
PART II—TAXABLE GIFT
Section 106—Taxable Gift.
(1) In this Chapter "taxable gift"
means
(a) any of the following assets
situated in Ghana:
(i)
building of a permanent or
temporary nature,
(ii) land,
(iii) shares, bonds and other
securities,
(iv) money, including foreign
currency,
(v) business and business assets,
and
(vi) any means of transportation
(land, air or sea),
(vii) goods or chattels not
included in subparagraph (vi),
(viii) part of, or any right or
interest in, to or over any of the
assets referred to in
subparagraphs (i) to (vii), or
(b) an asset or a benefit, whether
situated in Ghana or outside
Ghana, received by a resident
person as a gift by or for the
benefit of that person, or
(c) an asset whether, situated in
Ghana or outside Ghana, received
by or for the benefit of a
resident person as a gift where
the asset has been or is credited
in an account or has been or is
invested, accumulated, capitalised
or otherwise dealt with in the
name of or on behalf of or at the
direction of that person, or
(d) a favour in money or money's
worth or a consideration for an
act or omission or the forbearance
of an act or omission that enures
for or to the benefit of a
resident person.
(2) For the purposes of paragraphs
(b) and (c), "assets" means an
asset referred to in subparagraphs
(i) to (viii) of paragraph (a).
(3) For the purpose of this
section, it is immaterial whether
or not that person physically
received the asset so long as the
act, omission or transaction
inured or inures to the benefit of
that person. [As substituted by
the Internal Revenue (Amendment)
Act, 2003 (Act 644), s. 3].
PART III—VALUATION
Section 107—Valuation
For the purposes of section 105,
the value of a taxable gift is the
market value of the gift at the
time of the receipt.
PART IV—PROCEDURE RELATING TO GIFT
TAX
Section 108—Returns and Payment of
Tax
(1) Subject to subsection (2), a
person who receives a taxable gift
shall, within thirty days of
receipt, furnish the Commissioner
with a return in writing
containing the following
information:
(a) the description and location
of the taxable gift;
(b) the total value of the gift,
how it is calculated and tax
payable with respect to that gift;
(c) the full name and address of
the donor of the gift; and
(d) any other information required
by the Commissioner.
(2) Subsection (1) does not apply
where the gift referred to in that
subsection together with any other
taxable gifts received by that
person during the same year of
assessment does not exceed in
total fifty currency points.
(3) Where a person is required to
furnish a return under subsection
(1), that person shall remit to
the Commissioner the amount of tax
calculated as payable and the
payment of tax is due at that
time.
Section 109—Assessments and
Application of Income Tax
Procedure
(1) Subject to subsection (2), the
Commissioner shall, based on a
person's return furnished under
section 108 and on any other
information available, make an
assessment of the value of the
taxable gift received by that
person and the tax payable thereon
within one year from the date the
return is furnished.
(2) Where section 78 applies to a
person and that person furnishes a
return under section 108, the
Commissioner is deemed to have
made an assessment of the value of
the taxable gift received by that
person and the tax payable on that
assessment are those respective
amounts shown in the return.
(3) Except to the extent that they
are inconsistent with section 108
and subsections (1) and (2) of
this section, sections 72 to 79
shall apply, with the necessary
modifications to give full effect
to this Chapter, to returns and
assessments under that section and
those subsections as though
(a) references to a return of
income were replaced with
references to a return under
section 108; and
(b) references to chargeable
income were replaced with
references to gifts liable to
charge under section 105.
PART V—INTERPRETATION
Section 110—Definitions
(1) In this Chapter, unless the
context otherwise requires,
"aunt" means parent's sister;
"gift" with respect to the receipt
of a taxable gift means a receipt
without consideration or for
inadequate consideration;
"nephew" or "niece" means child of
a parent's sister or brother;
"tax" means tax levied under this
Chapter;
"taxable gifts" has the meaning in
section 106;
"total value" has the meaning in
section 105; and
"uncle" means parent's brother.
(2) For the purposes of this
Chapter, an unincorporated body of
persons is treated as having legal
personality and receiving the
beneficial interest in all taxable
gifts received by it by way of
gift.
CHAPTER IV
GENERAL PROVISIONS
PART I—INTERNATIONAL
Section 111—Double Taxation
Arrangements
(1) To the extent that the terms
of an international arrangement
which has been ratified by
Parliament under article 75 of the
Constitution are inconsistent with
the provisions of this Act, apart
from section 34, subsection (4) of
this section, Part IX of Chapter
I, and Part II of this Chapter,
the terms of the international
arrangement shall prevail over the
provisions of this Act.
(2) Where an international
arrangement provides for
reciprocal assistance in the
collection of taxes and the
Commissioner has received a
request from the competent
authority of another country
pursuant to that arrangement for
the collection from a person in
Ghana of an amount due by that
person under the tax laws of that
other country, the Commissioner
may, by notice in writing, require
that person to pay the amount to
the Commissioner by the date
specified in the notice for
transmission to the competent
authority of that other country.
(3) Where a person fails to comply
with a notice under subsection
(2), the amount in question may be
recovered for transmission to the
competent authority of that other
country as if it were tax due and
payable by that person under this
Act.
(4) Where an international
arrangement provides that income
accruing in or derived from Ghana
or some other amount is exempt
from Ghanaian tax or is subject to
a reduction in the rate of
Ghanaian tax, the benefit of that
exemption or reduction is not
available to a person who, for the
purposes of the arrangement, is a
resident of the other contracting
state where fifty per cent or more
of the underlying ownership of
that person is held by an
individual or individuals who are
not residents of that other
contracting state for the purposes
of the arrangement.
(5) The Minister responsible for
Finance may make Regulations which
are consistent with an
international arrangement under
section 114 for carrying out the
provisions of that international
arrangement.
(6) In this section,
"international arrangement"
includes
(a) an agreement with a foreign
government providing for the
relief of international double
taxation and the prevention of
fiscal evasion; and
(b) an agreement with a foreign
government providing for
reciprocal administrative
assistance in the enforcement of
tax liabilities.
PART II—ANTI-AVOIDANCE
Section 112—General Anti-Avoidance
Rule.
(1) For the purposes of
determining liability to tax under
this Act, the Commissioner may
re-characterise or disregard an
arrangement or part of an
arrangement that is entered into
or carried out as part of a tax
avoidance scheme,
(a) which is fictitious or does
not have a substantial economic
effect; or
(b) the form of which does not
reflect its substance. [As
substituted by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.16].
(2) In this section,
“arrangement” means any
arrangement, action, agreement,
course of conduct, promise,
transaction, understanding, or
undertaking, whether express or
implied, whether or not
enforceable by legal proceedings
and whether unilateral or
involving more than one person;
"tax avoidance scheme" includes an
arrangement, one of the main
purposes of which is the avoidance
or reduction of liability to tax.
PART III—PROCEDURE
Division I: Administration
Subdivision A: Commissioner of
Internal Revenue
Section 113—Commissioner of
Internal Revenue
(1) For the purposes of this Act,
the Commissioner means the
Commissioner of Internal Revenue
appointed under the Internal
Revenue Service Law, 1986 (P.N.D.C.L.
143).
(2) The Commissioner shall be
responsible for the administration
of this Act and shall pay into the
Consolidated Fund monies due to
the Service under this Act unless
otherwise provided under any other
enactment.[As substituted by the
Revenue Agencies (Retention of
Part of Revenue) Act, 2002 (Act
628), s.2(4).]
(3) Subject to subsection (4), the
Commissioner may by notice in the
Gazette or in writing authorise
any person within or outside Ghana
to perform or to assist in the
performance of a function imposed
upon the Commissioner by this Act.
(4) The Commissioner shall not
delegate the power to
(a) determine any matter or do
anything required to be determined
or done under subsection (4) of
section 2 and subsection (2) of
section 45;
(b) exempt a person from the
provisions of subsection (2) of
section 84;
(c) compound an offence under
section 155, other than to the
Solicitor of the Service; or
(d) remit taxes, interest, or
penalties under section 158;
(5) Subject to subsection (4), the
Commissioner may delegate to
(a) any Deputy Commissioner or
Assistant Commissioner of Internal
Revenue and any Chief, Principal,
or Senior Inspector of Taxes
(i)
the power to extend the date for
payment of or vary the amount of
instalments under section 80;
(ii) this power of delegation
other than with respect to matters
referred to in subsection (4); and
(iii) the authorisation of an
officer under section 124 or 125;
and
(b) an officer appointed by the
Service, including an officer
referred to in paragraph (a), any
functions conferred or imposed on
the Commissioner under this Act
which are not mentioned in
subsection (4) or paragraph (a) of
this subsection.
Subdivision B: Official
Documentation
Section 114—Regulations
(1) The Minister responsible for
Finance may, by legislative
instrument, make Regulations
(a) for matters authorised to be
made or prescribed under this Act;
(b) exempting any person, class of
person or income from tax;
(c) amending a provision of the
Schedules to this Act or any
monetary amount set out in this
Act; and
(d) for the better carrying into
effect of the provisions of this
Act.
(2) Without prejudice to the
general effect of subsection (1),
Regulations made under that
subsection may
(a) require a person or class of
persons to deduct from an amount
payable by that person or class of
persons to any other person an
amount calculated at the
prescribed rate and pay that
amount to the Commissioner;
(b) require a person or class of
persons to pay tax to the
Commissioner for any year of
assessment in amounts calculated
at the prescribed rate; and
(c) provide for the time of
payment, manner of ascertaining,
and recovery of the amounts
referred to in paragraphs (a) and
(b) and any other matter
incidental to the matters referred
to in those paragraphs.
Section 115—Practice Notes
(1) To achieve consistency in the
administration of this Act and to
provide guidance to persons
affected by this Act and the
officers of the Internal Revenue
Service, the Commissioner may
issue practice notes setting out
the Commissioner's interpretation
of this Act.
(2) A practice note is binding on
the Commissioner until revoked.
(3) A practice note is not binding
on persons affected by this Act.
Section 116—Private Rulings
(1) The Commissioner may, upon
application in writing by a
person, issue to that person a
private ruling setting out the
Commissioner's position regarding
the application of this Act to
that person with respect to a
transaction proposed or entered
into by that person.
(2) Where a person issued with a
ruling under subsection (1) makes,
prior to issue of the ruling,
(a) a full and true disclosure to
the Commissioner of all aspects of
the transaction relevant to the
ruling, and
(b) the transaction proceeds in
all material respects as described
in that person's application for
the ruling,
the ruling shall be binding on the
Commissioner with respect to the
application of this Act (as in
force at the time of the ruling)
to that person with respect to the
transaction.
(3) Where there is an
inconsistency between a practice
note and a private ruling,
priority is given to the terms of
the private ruling.
Section 117—Forms and Notices
(1) The Commissioner may specify
the form of claims, forms,
notices, returns, statements, and
other documents required under
this Act which shall contain the
information required for the
efficient administration of this
Act.
(2) The Commissioner shall make
the documents referred to in
subsection (1) available to the
public at the offices of the
Internal Revenue Service and at
other locations or by other medium
determined by the Commissioner.
Section 118—Tax Clearance
Certificate
(1) An alien who has been resident
in Ghana or who, not being a
person so resident, has a tax
liability due under this Act or
has income which accrued in or was
derived from Ghana with respect to
which that alien is chargeable to
tax under Chapter I, shall not
depart from Ghana unless that
alien produces to the immigration
officer at the port of departure a
tax clearance certificate.
(2) The Commissioner of Customs,
Excise and Preventive Service
shall not permit any importer or
other person to clear goods in
commercial quantities or meant for
commercial purposes from a port or
a factory in Ghana unless the
importer or other person produces
to the Commissioner a tax
clearance certificate issued in
respect of the importer or that
other person in the year of
assessment in which the goods are
to be cleared.
(3) Where any authority or person
is empowered by an enactment to
effect the registration of title
to land or a document conferring
title to land, that authority or
person shall not effect the
registration of that title or
document unless there is produced
to that authority or person a tax
clearance certificate issued in
the year of assessment in which
the registration is to be effected
and in respect of the person
applying for the registration or,
in respect of the person on behalf
of whom the application is made.
[As amended by the Internal
Revenue (Amendment) Act, 2003 (Act
644), s. 4 (a)(b)].
(3a) No contract shall be awarded
by any agency or body in which
public funds are vested to any
person for the provision of
services including consultancy
services, unless that person
produces to the agency or body a
Tax Clearance Certificate issued
by the Commissioner in respect of
that person in the year of
assessment in which the contract
is to be awarded. [As Inserted by
the Internal Revenue (Amendment)
Act, 2003 (Act 644), s. 4 (c)].
(4) A tax clearance certificate
issued under this section is valid
for the period and for the
purposes determined by the
Commissioner.
(5) Persons who discharge their
tax obligations up to the end of
the preceding year of assessment
or the relevant quarter of the
current year may be granted an all
purpose tax clearance certificate
valid for a period of not less
than three months or valid for the
subsequent quarter.
(6) Where a person is required to
produce a tax clearance
certificate under this section,
and the certificate is not for a
specific purpose, the person
enjoined to require the production
shall first inspect the original
certificate and thereafter demand
and retain a copy of the
certificate.
(7) In this section,
"immigration officer" has the
meaning assigned to it in the
Aliens Act, 1973 (Act 160);
"tax clearance certificate" means
a certificate issued by the
Commissioner to a person stating
that no tax is due under this Act
by that person in respect of the
periods stated in the certificate
or that that person has made
arrangements satisfactory to the
Commissioner for the payment of
the tax due.
Section 119—Tax Identification
Number
(1) For the purpose of identifying
persons subject to tax under this
Act, the Commissioner may issue to
a person a Tax Identification
Number.
(2) A person shall show the Tax
Identification Number in any
return, notice, or other document
used for the purposes of this Act.
Section 120—Service of Notices and
Other Documents
(1) Unless otherwise provided in
this Act, a notice or other
document required or authorised by
this Act to be served
(a) on a person being a resident
individual, other than in a
representative capacity, is
considered sufficiently served if
(i)
personally served on that person;
(ii) left at that person's usual
or last known place of abode,
office, or place of business in
Ghana; or
(iii) sent by registered post to
that place of abode, office, or
place of business, or to that
person's usual or last known
address in Ghana; or
(b) on any other person, is
considered sufficiently served if
(i)
it is left at or sent by
registered post to the registered
office of that person or that
person's address for service of
notices under this Act; or
(ii) where there is no such office
or address, it is personally
served on or sent by registered
post to the usual or last known
business or private address of a
nominated officer of that person;
or
(iii) where there is no such
office or address, it is left at
or sent by registered post to the
usual or last known business,
office or other address of that
person.
(2) Where a notice or other
document is served by registered
post it shall be treated as served
on the day after the day on which
the addressee of the registered
letter containing the notice would
have been informed in the ordinary
course that the letter is
available.
(3) A notice or other document
issued, served, or given by the
Commissioner under this Act is
sufficiently authenticated if the
name or title of the Commissioner,
or authorised officer, is signed
or written on the notice or
document.
(4) In this section,
"nominated officer",
(a) in the case of a partnership,
means a partner or manager of the
partnership;
(b) in the case of a company,
means a director or manager of the
company; and
(c) in the case of a body of
persons, means a manager of the
body;
"person" includes a partnership.
Section 121—Document Containing a
Mistake
(1) Where the Commissioner is
satisfied that a document issued
by the Commissioner contains a
mistake that does not involve a
dispute as to the interpretation
of this Act or facts of a
particular case, the Commissioner
may, for the purposes of
rectifying the mistake, amend the
document any time before the
expiry of two years from the date
of issuing the document.
(2) In this section, "document"
includes an assessment, ruling,
notice, or certificate.
Subdivision C: Records and
Information Collection
Section 122—Accounts and Records
(1) Unless otherwise authorised by
the Commissioner, a person liable
to tax under this Act other than
an employee with respect to his
employment income shall maintain
in Ghana the necessary records to
explain the information to be
provided in a return or in any
other document to be furnished to
the Commissioner under this Act or
to enable an accurate
determination of the tax payable
by that person.
(2) Where a person does not
maintain records as required by
subsection (1), the Commissioner
may adjust that person's liability
to tax in a manner that is
consistent with the intention of
this Act.
(3) The records referred to in
this section shall be retained for
a period of not less than six
years unless the Commissioner
otherwise specifies in writing.
(4) For the purposes of this
section, the records to be
maintained by a business shall
include a record of all receipts
and payments, all revenue and
expenditure, and all assets and
liabilities of the business.
Section 123—Currency Conversion
(1) Amounts taken into account
under this Act shall be calculated
in cedis.
(2) Where an amount taken into
account under this Act is in a
currency other than cedis, the
amount shall be converted to cedis
at the Bank of Ghana Inter-Bank
Exchange rate applying between the
currency and the cedi on the date
that the amount is accrued,
derived, incurred, or otherwise
taken into account for tax
purposes.
(3) Notwithstanding subsections
(1) and (2)
(a) The Commissioner may in
writing request a person; or
(b) a person may, with the written
approval of the Commissioner and
subject to such conditions as the
Commissioner may determine, be
permitted
to take any amount into account
under this Act in a currency other
than cedis.
(4) The Commissioner shall in
exercising the discretion under
subsection (3) take into
consideration the volume of
purchases or loans usually made or
contracted by that person from
foreign sources in respect of that
business.
(5) The Commissioner may, by
notice in writing, revoke an
approval granted any person under
subsection (3) if that person
fails to comply with any of the
conditions attached to the
approval. [As Inserted by the
Internal Revenue (Amendment) Act,
2003 (Act 644), s. 5].
Section 124—Access to Books,
Records, and Computers
(1) For the purposes of
administering this Act, the
Commissioner, or an officer
authorised in writing by the
Commissioner,
(a) shall have at all times and
without any prior notice full and
free access to any premises,
place, property, book, record, or
computer;
(b) may make an extract or copy
from any book, record, or
computer-stored information to
which access is obtained under
paragraph (a);
(c) may seize any book, record, or
other document that, in the
opinion of the Commissioner or
authorised officer, affords
evidence which may be material in
determining the liability of a
person to tax, interest, or
penalty under this Act;
(d) may retain a book or record
for as long as it may be required
for determining a person's tax
liability or for any proceeding
under this Act;
(e) may, where a hard copy or
computer disk of information
stored on a computer is not
provided, seize and retain the
computer for as long as is
necessary to copy the information
required; and
(f) and for the purposes of
paragraphs (a) to (e), may search
a person entering or leaving any
premises or place.
(2) An officer shall not exercise
the powers under subsection (1)
without authorisation in writing
from the Commissioner and the
officer shall produce the
authorisation to the occupier of
the premises or place to which the
exercise of powers relates.
(3) For the purposes of this
section, the Commissioner may
request the Inspector-General of
Police for the requisite
assistance for a specific
assignment.
(4) The occupier of the premises
or place to which an exercise of
powers under subsection (1)
relates shall provide all
reasonable facilities and
assistance for the effective
exercise of the powers.
(5) A person whose books, records,
or computer have been removed and
retained under subsection (1) may
examine them and make copies or
extracts from them, at that
person's expense, during regular
office hours under the supervision
determined by the Commissioner.
(6) All records, books, or
computers removed and retained
under sub-section (1) shall be
signed for by the Commissioner or
an authorised officer and the
Commissioner shall return them to
the owner as soon as is
practicable after the
Commissioner's investigation of
that person's affairs and any
related proceedings have been
concluded.
(7) This section has effect
notwithstanding any rule of law
relating to privilege or the
public interest with respect to
the production of, or access to,
the documents.
(8) In this section, "occupier" in
relation to premises or a place
includes the owner, manager, or
any other person on the premises
or place.
Section 125—Notice to Obtain
Information or Evidence
(1) The Commissioner may, by
notice in writing, require a
person, whether or not liable to
tax under this Act,
(a) to furnish, including by way
of creation of a document, within
the time specified in the notice,
information that may be required
by the notice; or
(b) to attend at the time and
place designated in the notice for
the purpose of being examined on
oath by the Commissioner or by an
officer authorised by the
Commissioner, concerning the tax
affairs of that person or any
other person and, for that
purpose, the Commissioner or an
authorised officer may require the
person examined to produce any
book, record, or computer-stored
information in the control of that
person.
(2) Where the notice requires the
production of a book, record, or
computer-stored information, it is
sufficient if the book, record, or
computer-stored information is
described with reasonable
certainty in the notice.
(3) A person to be examined on
oath under paragraph (b) of
subsection (1) is entitled to
legal or other representation
throughout the examination.
(4) A notice issued under this
section shall be served by, or at
the direction of, the Commissioner
by a signed copy delivered by hand
to the person to whom it is
directed or left at that person's
last and usual place of business
or abode.
(5) This section has effect
notwithstanding any rule of law or
enactment in relation to the
production of, or access to, the
documents.
Section 126—Books and Records Not
in English Language
Where a book, record, or
computer-stored information
referred to in section 122, 124,
or 125 is not in English, the
Commissioner may, by notice in
writing, require the person
keeping the book, record, or
computer-stored information to
provide, at that person's expense,
a translation into English by a
translator approved by the
Commissioner.
Section 127—Official Secrecy
(1) A person appointed under, or
employed in carrying out the
provisions of this Act shall
regard and deal with all documents
and information which may come to
that person's possession or
knowledge in connection with the
performance of functions under
this Act as secret and shall not
disclose any information or
document except in accordance with
the provisions of this Act or
under an order of a superior
court.
(2) Nothing in this section shall
prevent the disclosure of
information or documents to
(a) the Minister responsible for
Finance or any other person where
the disclosure is necessary for
the purposes of this Act or any
other fiscal law;
(b) a person in the service of the
Government in a revenue or
statistical department where the
disclosure is necessary for the
performance of official duties;
(c) the Auditor-General or a
person authorised by the
Auditor-General where the
disclosure is necessary for the
performance of official duties; or
(d) the competent authority of the
government of another country with
which Ghana has entered into an
agreement for the avoidance of
double taxation or for the
exchange of information, to the
extent permitted under that
agreement.
(3) A person receiving documents
and information under subsection
(2) or (3) shall keep them secret
under the provisions of this
section, except to the minimum
extent necessary to achieve the
purpose for which the disclosure
is necessary.
Division II: Dispute Resolution
Subdivision A: Objections and
Appeals
Section 128—Objection to
Assessment
(1) A person who is dissatisfied
with an assessment made under this
Act may lodge an objection to the
assessment with the Commissioner
within thirty days of the service
of the notice of assessment or, in
the case of a provisional
assessment under section 76,
within nine months of the
commencement of the basis period
to which the provisional
assessment relates.
(2) An objection to an assessment
shall be in writing and state
precisely the grounds upon which
it is made.
(3) The Commissioner may, upon
application in writing by an
objector, extend the time for
lodging an objection where the
Commissioner is satisfied that the
delay in lodging the objection is
due to the objector's absence from
Ghana, sickness, or other
reasonable cause.
(4) After the determination of the
objection, the Commissioner may
allow the objection in whole or
part and amend the assessment
accordingly, or disallow the
objection.
(5) As soon as is practicable
after allowing or disallowing an
objection, the Commissioner shall
serve the objector with notice of
the decision.
(6) Where a decision has not been
made by the Commissioner within
ninety days after the objection
was lodged with the Commissioner,
the objector may, by notice in
writing to the Commissioner, elect
to treat the Commissioner as
having made a decision to disallow
the objection.
(7) Where an objector makes an
election under subsection (6), the
objector is treated as having been
served with a notice of the
disallowance on the date the
objector's election is lodged with
the Commissioner.
Section 129—Appeal to Court
(1) A person dissatisfied with an
objection decision may appeal
against the decision to the High
Court.
(2) An appeal under subsection (1)
shall be made by lodging a notice
of appeal with the Registrar of
the Court within thirty days after
service of the notice of the
decision.
(3) A person may lodge a notice of
appeal after the date specified in
subsection (2) if that person
proves to the satisfaction of the
Court that the delay in lodging
the notice of appeal is due to
that person's absence from Ghana,
sickness, or other reasonable
cause and that there has been no
unreasonable delay on that
person's part.
(4) A person who has lodged a
notice of appeal with the
Registrar of the High Court under
subsection (2) or (3) shall,
within five working days of doing
so, serve a copy of the notice of
appeal on the Commissioner.
(5) The High Court may confirm,
reduce, increase or annul the
assessment on which the decision
is based or make an appropriate
order.
(6) An appeal against a decision
of the Commissioner shall be
instituted against the
Attorney-General in accordance
with article 88(5) of the
Constitution.
Section 130—Appeal to Court of
Appeal and Supreme Court
(1) The Commissioner or the
appellant may appeal against the
decision of the High Court made
under subsection (5) of section
129 to the Court of Appeal on a
matter of law only.
(2) An appeal against a decision
of the Court of Appeal under
subsection (1) shall lie as of
right to the Supreme Court.
(3) An appeal under subsection (1)
or (2) shall be made within thirty
days after the decision to which
it pertains.
Section 131—Payment of Tax
(1) Where a person has lodged a
notice of objection to an
assessment under section 128, in
respect of a provisional
assessment under section 76, an
amount not less than the amount
payable in the first quarter of
that year of assessment, as
contained in the notice of
assessment shall be paid pending
the determination of the objection
and any appeal.
(2) An application, action, or
appeal shall not be entertained by
a Court in respect of an objection
under section 128 unless the
person to whom the decision
relates has paid the amount
contained in the notice under
subsection (1) of this section.
(3) Where the payment of a tax has
been held over pending an
objection or appeal, any tax
outstanding under the assessment
as determined by the Commissioner
or objection on appeal shall be
payable within thirty days from
the date of service of the notice
of the decision of the
Commissioner or the date of the
decision of the Court.
(4) Where a person is required to
pay tax as a result of an
objection decision of the
Commissioner or as a result of a
court decision under subdivision A
of Division II, the person shall
pay, in addition to the tax
payable a penalty at the minimum
prevailing bank rate on the tax
payable from the date of the
service of the notice of
assessment to the date the person
pays the amount determined on
objection or on appeal. [As
amended by Internal Revenue
(Amendment) Act, 2004 (Act 669),
s. 2].
Subdivision B: Proof
Section 132—Burden of Proof
In an objection to an assessment
or on an appeal, under section 129
or 130, the onus is on the person
assessed to prove, on the balance
of probabilities, the extent to
which the assessment made by the
Commissioner is excessive or
erroneous.
Section 133—Documents
(1) A document purporting to be
made, issued, or executed under
this Act
(a) shall not be quashed or deemed
to be void or voidable for want of
form; or
(b) shall not be affected by
reason of any mistake, defect, or
omission in the document,
if it is, in substance and effect,
in conformity with this Act and
the person assessed or intended to
be assessed or affected by the
document is designated in it
according to common intent and
understanding.
(2) In subsection (1), "document"
includes an assessment, ruling,
notice, or certificate.
(3) Where the Commissioner or an
authorised officer makes a copy of
a book, record, or computer-stored
information or part of it under
paragraph (b) of subsection (1) of
section 124 and the copy is
certified by the Commissioner or
the officer as a true copy, the
copy shall be admissible in
evidence before any court and have
the same probative value as the
original book, record, or
computer-stored information if it
had been proved in the ordinary
way.
Division III: Compliance
Subdivision A: Collection
Section 134—Due Date and Payment
of Tax
(1) Subject to this Act, tax
assessed shall be due on the date
on which the person assessed is
served with a notice of
assessment.
(2) Subject to this Act, tax due
in an assessment shall be paid by
the person assessed,
(a) in the case of a person
subject to section 78, on the due
date for furnishing of the return
of income to which the assessment
relates;
(b) in the circumstances specified
in subsection (7) of section 72,
on the date specified in the
assessment;
(c) in the case of tax payable by
instalments or by withholding, at
the time provided for in Division
III of Part X of Chapter I; or
(d) in any other case, within
thirty days from the date of
service of the notice of
assessment.
(3) Upon written application by
the person assessed, the
Commissioner may, where good cause
is shown, allow for the payment of
tax
(a) due on assessment, or
(b) due by way of payment under
subsection (4) of section 102 or
subsection (3) of section 108,
by instalments of equal or varying
amounts as the Commissioner may
determine having regard to the
circumstances of the case.
(4) Where tax is permitted to be
paid by instalments under
subsection (3) and there is
default in the payment of an
instalment, the whole balance of
the tax outstanding shall become
immediately payable.
(5) Permission under subsection
(3) to pay tax by instalments does
not preclude a liability for
interest arising under section 143
on the unpaid balance of the tax
due.
Section 135—Tax as a Debt Due to
the Service
(1) Tax, when it becomes due and
payable, is a debt due to the
Service and is payable to the
Commissioner in the manner and at
the place prescribed.
(2) Tax that has not been paid
when it is due and payable may be
sued for and recovered in any
Court by the Commissioner with
full costs of suit from the person
sued.
Section 136—Collection of Tax by
Distress
(1) The Commissioner may recover
any unpaid tax by distress
proceedings against the movable
property of a person liable to pay
tax, referred to as the "tax
debtor", by issuing an order in
writing specifying the person
against whose property the
proceedings are authorised, the
location of the property, and the
tax liability to which the
proceedings relate; and may
require a police officer to be
present while distress is being
executed.
(2) For the purposes of executing
distress under subsection (1), the
Commissioner may, at any time,
enter any house or premises
described in the order authorising
the distress proceedings.
(3) The property upon which
distress is levied under this
section, other than perishable
goods, shall be kept for ten days
either at the premises where the
distress is levied or at any other
place that the Commissioner may
consider appropriate, at the cost
of the tax debtor.
(4) Where the tax debtor does not
pay the tax due, together with the
costs of the distress,
(a) in the case of perishable
goods, within a period that the
Commissioner considers reasonable
having regard to the condition of
the goods, or
(b) in any other case, within ten
days after the distress is levied,
the property distrained may be
sold by public auction or in any
other manner directed by the
Commissioner.
(5) The proceeds of a disposal
under subsection (4) shall be
applied by the auctioneer or
seller towards the cost of taking,
keeping, and selling the property
distrained upon, then towards the
tax due and payable, and the
remainder of the proceeds, shall
be given to the tax debtor.
(6) Nothing in this section shall
preclude the Commissioner from
proceeding under section 135 with
respect to the balance owed if the
proceeds of the distress are not
sufficient to meet the costs of
the distress and the tax due.
(7) All costs incurred by the
Commissioner in respect of any
distress may be recovered by the
Commissioner from the tax debtor
and the provisions of this
Division shall apply as if the
costs were tax due and payable.
(8) Any property distrained under
this section shall be identified
by the pasting or hanging of a
piece of ribbon or cloth
determined by the Commissioner to
or on a conspicuous place of the
property.
Section 137—Security on Landed
Property for Unpaid Tax
(1) Where a person who is the
owner of land or buildings
situated in Ghana fails to pay tax
when it is due and payable, the
Commissioner may, by notice in
writing, notify that person of the
intention to apply to the Chief
Registrar of Lands, for the land
or buildings to be the subject of
security for tax as specified in
the notice.
(2) If a person on whom a notice
has been served under this section
fails to make payment of the whole
of the amount of the tax specified
in the notice within thirty days
of the date of service of the
notice under subsection (1), the
Commissioner may, by notice in
writing, in this section referred
to as a "notice of direction",
direct the Chief Registrar that
the land or buildings of that
person, to the extent of the
interest of that person in the
land or buildings, be the subject
of security for unpaid tax in the
amount specified in the notice.
(3) Where a notice of direction is
served on the Chief Registrar
under subsection (2), the Chief
Registrar shall, without fee,
register the direction as if it
were an instrument or mortgage
over, or charge on, the land or
buildings and the registration
shall, subject to any prior
mortgage or charge, operate in all
respects as a legal mortgage over
or charge on the land or building
to secure the amount of the unpaid
tax.
(4) Upon receipt of the whole of
the amount of tax secured under
subsection (3), the Commissioner
shall serve notice on the Chief
Registrar cancelling the direction
made under subsection (2) and the
Chief Registrar shall, without
fee, record the cancellation at
which time the direction shall
cease to have effect.
Section 138—Recovery of Tax from
Person Owing Money to Tax Debtor
(1) Subject to subsection (2),
where a person, referred to as the
“tax debtor”, has not paid tax
which is due, the Commissioner
may, by notice in writing, require
any other person
(a) owing or who may owe money to
the tax debtor,
(b) holding or who may
subsequently hold money for, or on
account of, the tax debtor,
(c) holding or who may
subsequently hold money on account
of a third person for payment to
the tax debtor, or
(d) having authority from a third
person to pay money to the tax
debtor,
to pay the money to the
Commissioner on the date set out
in the notice, up to the amount of
tax due.
(2) The Commissioner may only
issue a notice under subsection
(1) with respect to tax which is
due but not currently payable
where the Commissioner reasonably
believes that the tax debtor will
not pay the tax by the date on
which it becomes payable.
(3) The date specified in the
notice under subsection (1) shall
not be a date before the money
becomes due to the tax debtor, or
is held on behalf of the tax
debtor.
(4) At the same time that notice
is served under subsection (1),
the Commissioner shall also serve
a copy of the notice on the tax
debtor.
(5) Where a person served with a
notice under subsection (1) is
unable to comply with the notice
by reason of lack of moneys owing
to or held for the tax debtor,
that person shall, as soon as is
practicable and in any event not
later than the payment date
specified in the notice, notify
the Commissioner accordingly in
writing setting out the reasons
for the inability to comply.
(6) Where a notice is served on
the Commissioner under subsection
(5), the Commissioner may, by
notice in writing,
(a) accept the notification and
cancel or amend the notice issued
under subsection (1); or
(b) reject the notification.
(7) A person dissatisfied with a
decision under subsection (6) may
only challenge the decision under
the objection and appeal procedure
in Division II.
(8) A person making a payment
pursuant to a notice under
subsection (1) is deemed to have
been acting under the authority of
the tax debtor and of all other
persons concerned and is hereby
indemnified in respect of the
payment against all proceedings,
civil or criminal, and all
processes, judicial or
extra-judicial, notwithstanding
any provisions to the contrary in
any written law, contract, or
agreement.
(9) The provisions of this Part
apply to any amount due under this
section as if it were tax due and
payable.
Section 139—Duties of Receivers
(1) A receiver shall, in writing,
notify the Commissioner within
thirty days of being appointed to
the position of receiver or of
taking possession of an asset
situated in Ghana, whichever
occurs first.
(2) The executor of a deceased
individual's estate and the legal
representative of an incapacitated
person shall complete and submit
any returns required under this
Act of the deceased or
incapacitated person whether or
not the return is required with
respect to matters occurring prior
to the appointment of the executor
or legal representative.
(3) The Commissioner may, in
writing, notify a receiver of the
amount which appears to the
Commissioner to be sufficient to
provide for any tax which is or
will become payable by the person
whose assets came into the
possession of the receiver.
(4) A receiver
(a) shall realise out of the
assets which come into the
receiver's possession under the
receivership sufficient moneys to
set aside the amount notified by
the Commissioner under subsection
(3), or the lesser amount
subsequently agreed to by the
Commissioner; and
(b) is liable to the extent of the
amount set aside for the tax of
the person whose assets come into
the possession of the receiver.
(5) A receiver is personally
liable to the extent of any amount
required to be set aside under
subsection (4) for the tax
referred to in subsection (3) if
and to the extent that the
receiver fails to comply with the
requirements of this section.
(6) The amount of tax notified by
the Commissioner under subsection
(3) shall become a debt due to the
Service within the meaning of this
Act and shall have priority over
all other debts of the tax debtor,
notwithstanding anything contained
in any other enactment.
(7) In this section, "receiver"
includes a person who, in respect
to an asset situated in Ghana, is
(a) a liquidator of a company,
(b) a receiver appointed out of
court or by any Court,
(c) a trustee for a bankrupt,
(d) a mortgagee in possession,
(e) an executor of a deceased
individual's estate, or
(f) a person conducting the
affairs of an incapacitated
person.
Section 140—Recovery from Agent of
Non-Resident
(1) The Commissioner may, by
notice in writing, require a
person who is in possession of an
asset, including money, belonging
to a non-resident person to pay
tax on behalf of the non-resident
person, up to the market value of
the asset but not exceeding the
amount of tax due.
(2) The captain of any aircraft or
ship owned or chartered by a
non-resident person is deemed to
be in possession of the aircraft
or ship for the purposes of this
section.
(3) The tax payable in respect of
an amount included in ascertaining
the income of a non-resident
partner under section 42 is
assessable in the name of the
partnership or of any resident
partner of the partnership and may
be recovered out of the assets of
the partnership or from a resident
partner personally.
(4) The tax payable in respect of
an amount included in ascertaining
the income of a non-resident
beneficiary under section 49 is
assessable in the name of the
trustee and may be recovered out
of the assets of the trust or from
the trustee personally.
(5) A person making a payment
pursuant to a notice under
subsection (1) is deemed to have
been acting under the authority of
the non-resident person and of all
other persons concerned and is
hereby indemnified in respect of
the payment against all
proceedings, civil or criminal,
and all processes, judicial or
extra-judicial, notwithstanding
any provisions to the contrary in
any written law, contract, or
agreement.
(6) The provisions of this
Division apply to an amount due
under this section as if it were
tax due and payable.
Subdivision B: Interest and
Penalties
Section 141—Failure to Maintain
Records
A
person who deliberately fails to
maintain proper records for a year
of assessment in accordance with
section 122 is liable to pay a
penalty equal to 5% of the amount
of tax payable by that person for
the year.
Section 142—Failure to Furnish
Return
Any company or self-employed
person that fails to furnish a
return of income within the time
required under this Act is liable
to pay a penalty of one penalty
unit in the case of a company and
half a penalty unit in the case of
a self employed person in respect
of each day during which the
default continues. [As substituted
by Internal Revenue (Amendment)
Act, 2004 (Act 669), s. 3)
Section 143—Failure to Pay Tax on
Due Date
(1) Subject to subsection (2) a
person who fails to pay a tax,
including an amount treated by
this Act as if it were tax, on or
before the due date for payment is
liable
(a) in a case where the failure is
for a period of not more than
three months to pay a sum equal to
10% of the tax payable in addition
to the tax unpaid;
(b) in a case where the failure is
for a period exceeding three
months to pay a penalty equal to
20% of the tax payable in addition
to the tax unpaid.
(2) Where a person fails to pay
any tax which that person is
required under this Act to
withhold and pay to the
Commissioner on the due date, that
person is liable
(a) in a case where the failure is
for a period of not more than
three months to pay a penalty
equal to 20% of the tax payable in
addition to the tax unpaid;
(b) in a case where failure is
for a period exceeding three
months to pay a penalty equal to
30% of the tax payable in addition
to the tax unpaid.
(3) If any person without
reasonable excuse fails to pay the
tax and penalty imposed under
subsections (1) and (2) after
notice has been served on that
person in accordance with section
147 (4) of this Act, the
Commissioner may direct that such
a person shall pay in addition a
penalty of a sum equal to 5% of
the total of the outstanding tax
and penalty imposed under those
sub-sections for every month
during which the default
continues.
(4) Interest or penalty charged or
imposed in respect of a failure to
comply with any provision of
sections 81 to 87 is borne
personally by the withholding
agent and no part of it is
recoverable from the person who
received the payment from which
tax was or should have been
withheld. [As substituted by
Internal Revenue (Amendment) Act,
2004 (Act 669), s. 4).
Section 144—Understating Estimated
Tax Payable by Instalment
A
person to whom section 78 applies
and whose estimate or revised
estimate of chargeable income for
a year of assessment under that
section is less than ninety per
cent of the person's actual
chargeable income assessed for
that year is liable to pay a
penalty equal to thirty per cent
of the difference between the tax
calculated in respect of that
person's estimate or revised
estimate of chargeable income and
the tax calculated in respect of
ninety per cent of that person's
actual chargeable income for the
year.
Section 145—Making False or
Misleading Statements
(1) A person who,
(a) makes a statement to an
officer of the Service that is
false or misleading in a material
particular, or
(b) omits from a statement made to
an officer of the Service any
matter or thing without which the
statement is misleading in a
material particular,
is liable to pay a penalty equal
to,
(c) where the statement or
omission is made without
reasonable excuse, double the
underpayment of tax which may
result if the inaccuracy of the
statement were undetected; and
(d) where the statement or
omission is made knowingly or
recklessly, triple the
underpayment of tax which may
result if the inaccuracy of the
statement were undetected.
(2) A reference in this section to
a statement made to an officer of
the Service is a reference to a
statement made in writing to that
officer acting in the performance
of functions under this Act, and
includes a statement made
(a) in an application,
certificate, declaration,
notification, return, objection,
or other document made, prepared,
given, filed, or furnished under
this Act;
(b) in information required to be
furnished under this Act;
(c) in a document furnished to an
officer of the Service otherwise
than pursuant to this Act;
(d) in answer to a question asked
of a person by an officer of the
Service; or
(e) to another person with the
knowledge or reasonable
expectation that the statement
would be conveyed to an officer of
the Service.
Section 146—Aiding and Abetting
A
person who aids or abets another
person to commit an offence of a
type referred to under Subdivision
C, or counsels or induces another
person to commit that offence is
liable to a penalty equal to
triple the underpayment of tax
which may result if the offence
were committed and went unnoticed.
Section 147—Assessment of Interest
and Penalties
(1) The Commissioner shall make an
assessment of the interest and
penalties for which a person is
liable under this Subdivision.
(2) Liability for interest and
penalties under this Subdivision
is calculated separately with
respect to each section of this
Subdivision.
(3) The imposition of interest and
penalties under this Subdivision
is in addition to any other tax
imposed by this Act or fine
imposed as a result of conviction
of an offence under Subdivision C
and shall not relieve any person
from liability to criminal
proceedings in respect of that
offence.
(4) Where an assessment has been
made under this section, the
Commissioner shall serve a notice
of assessment on that person
stating
(a) the amount of interest or
penalties payable;
(b) how the amount is calculated;
and
(c) the time, place, and manner of
objecting to the assessment.
(5) Interest and penalties
assessed under this section
(a) are due and payable within
thirty days from the day on which
the person liable is served with
the notice of assessment under
subsection (4); and
(b) are treated for the purposes
of this Act as though they were
tax.
Subdivision C: Offences
Section 148—Failure to Comply with
Act
Except as otherwise provided in
this Act, a person who fails to
comply with a provision of this
Act commits an offence and is
liable on summary conviction,
(a) where the failure results or,
if undetected, may result in an
underpayment of tax in an amount
exceeding five hundred currency
points, to a fine of not less than
fifty penalty units and not more
than three hundred penalty units;
and
(b) in any other case, to a fine
of not less than ten penalty units
and not more than one hundred
penalty units. [As amended by
Internal Revenue (Amendment) Act,
2004 (Act 669), s. 5 (a) and (b)].
Section 149—Failure to Pay Tax
A
person who without reasonable
excuse fails to pay a tax,
including an amount treated by
this Act as if it were tax, on or
before the due date for payment
commits an offence and is liable
on summary conviction,
(a) where the failure is to pay
an amount in excess of one hundred
currency points to a fine of not
less than twenty-five penalty
units and not more than one
hundred penalty units or
imprisonment for a term of not
less than three months and not
more than one year, or both; and
(b) in any other case, to a fine
of not less than five penalty
units and not more than
twenty-five penalty units or
imprisonment for a term of not
less than one month and not more
than three months, or both.
Section 150—Making False or
Misleading Statements
(1) A person who,
(a) makes a statement to an
officer of the Internal Revenue
Service that is false or
misleading in a material
particular, or
(b) omits from a statement made to
an officer of the Internal Revenue
Service any matter or thing
without which the statement is
misleading in a material
particular,
commits an offence and is liable
on summary conviction
(c) where the statement or
omission is made without
reasonable excuse,
(i)
and if the inaccuracy of the
statement were undetected may
result in an underpayment of tax
in an amount exceeding one hundred
currency points, to a fine of not
less than twenty-five penalty
units and not more than one
hundred penalty units or
imprisonment for a term of not
less than three months and not
more the one year, or both; and
(ii) in any other case, to a fine
of not less than five penalty
units and not more than
twenty-five penalty units or
imprisonment for a term of not
less than one month and not more
than three months, or both; or
(d) where the statement or
omission is made knowingly or
recklessly,
(i)
and if the inaccuracy of the
statement were undetected may
result in an underpayment of tax
in an amount exceeding one hundred
currency points, to a fine of not
less than fifty penalty units and
not more than two hundred penalty
units or imprisonment for a term
of not less than one year and not
more than two years, or both; and
(ii) in any other case, to a fine
of not less than ten penalty units
and not more than fifty penalty
units or imprisonment for a term
of not less than six months and
not more than one year, or both.
(2) A reference in this section to
a statement made to an officer of
the Service has the same meaning
as in subsection (2) of section
145.
Section 151—Impeding Tax
Administration
A
person who without reasonable
excuse,
(a) obstructs or attempts to
obstruct an officer of the
Internal Revenue Service in the
performance of duties under this
Act, or
(b) otherwise impedes or attempts
to impede the administration the
Act,
commits an offence and is liable
on summary conviction to a fine of
not less than twenty-five penalty
units and not more than two
hundred penalty units or
imprisonment for a term of not
more than two years, or both.
Section 152—Offences by Authorised
and Unauthorised Persons
(1) Any person who,
(a) being an officer or a person
employed in carrying out the
provisions of this Act,
(i)
directly or indirectly asks for,
or receives in connection with any
of the officer's duties, a payment
or reward, whether pecuniary or
otherwise, or promise or security
for that payment or reward, not
being a payment or reward which
the officer is lawfully entitled
to receive, or
(ii) enters into or acquiesces in
an agreement to do or to abstain
from doing, permit, conceal, or
connive at any act or thing
whereby the tax revenue is or may
be defrauded or which is contrary
to the provisions of this Act or
to the proper execution of the
officer's duty, or
(b) not being authorised under
this Act, collects or attempts to
collect an amount of tax levied
under this Act or an amount which
that person describes as tax,
commits an offence and is liable
on summary conviction to a fine of
not less than fifty penalty units
or to imprisonment for a term of
not less than one year and not
more than three years, or both.
(2) A person who contravenes
section 127 commits an offence and
is liable on summary conviction to
a fine not exceeding one hundred
penalty units or to imprisonment
for a term not exceeding one year,
or both.
Section 153—Aiding or Abetting
A
person who aids or abets another
person to commit an offence,
referred to as the "original
offence", under this Act, or
counsels or induces another person
to commit that offence, commits an
offence and is liable on summary
conviction,
(a) where the original offence
involves a statement of the kind
mentioned in paragraph (a) or (b)
of subsection (1) of section 150
and if the inaccuracy of the
statement were undetected may
result in an underpayment of tax
in an amount exceeding one hundred
currency points, to a fine of not
less than fifty penalty units and
not more than two hundred penalty
units or imprisonment for a term
of not less than one year and not
more than two years, or both; and
(b) in any other case, to a fine
of not less than ten penalty units
and not more than fifty penalty
units or imprisonment for a term
of not less than six months and
not more than one year, or both.
Subdivision D: Entities
Section 154—Offences by Entities
(1) Subject to subsection (3),
where an entity commits an
offence, every person who is a
manager of that entity at that
time is treated as also having
committed the same offence.
(2) Subject to subsection (3),
where an entity commits an offence
by failing to pay an amount of
tax, including an amount treated
by this Act as though it were tax,
every person who is a manager of
that entity at that time or was a
manager within the previous six
months is jointly and severally
liable with that entity and that
other person to the Commissioner
for the amount.
(3) Subsections (1) and (2) do not
apply where
(a) the offence is committed
without that person's knowledge or
consent; and
(b) that person has exercised the
degree of care, diligence and
skill that a reasonably prudent
person would have exercised in
comparable circumstances to
prevent the commission of the
offence.
(4) A person who makes a payment
to the Commissioner with respect
to a liability under subsection
(2) shall be indemnified by that
entity with respect to the payment
and that person may retain out of
any money or property of that
entity coming into the possession
of that person an amount not
exceeding the payment and that
entity shall have no claim against
that person with respect to the
retention.
(5) In subsections (1) and (2),
"manager" means,
(a) in the case of a partnership,
a partner or manager of the
partnership or a person purporting
to act in either of those
capacities;
(b) in the case of a company, a
director, manager, or officer of
the company or a person purporting
to act in any of those capacities;
and
(c) in the case of a body of
persons, a manager or a person
purporting to act in that
capacity.
Subdivision E: Proceedings
Section 155—Compounding Offences
(1) Where a person commits an
offence under this Act, other than
of a kind referred to in section
152, the Commissioner may, at any
time prior to the commencement of
court proceedings, compound the
offence and order that person to
pay a sum of money specified by
the Commissioner, not exceeding
the amount of the fine prescribed
for the offence.
(2) The Commissioner may only
compound an offence under this
section if the person concerned
admits in writing to the
commission of the offence.
(3) Where the Commissioner
compounds an offence under this
section, the order referred to in
subsection (1)
(a) shall be in writing and
specify the offence committed, the
sum of money to be paid, and the
due date for payment, and shall
have attached the written
admission referred to in
subsection (2);
(b) shall be served on the person
who committed the offence;
(c) shall be final and not subject
to an appeal; and
(d) may be enforced in the same
manner as a decree of a court for
the payment of the amount stated
in the order or by the provisions
of this Act.
(4) Where the Commissioner
compounds an offence under this
section, the person concerned is
not liable for prosecution or a
penalty under Subdivisions B or C
in respect of that offence.
Section 156—Venue
Any
(a) offence committed by a person
under this Act, or
(b) civil proceedings under this
Act in relation to a person,
shall be instituted, tried, heard,
disposed of and the person
punished, as the case requires, at
the Court nearest to that person's
usual place of residence or at a
Court exercising jurisdiction over
the area in which the office of
the Commissioner having primary
responsibility for that person's
affairs under this Act is
situated.
Section 157—Amounts Payable
Notwithstanding
(1) The institution of proceedings
for, or the imposition of, a
penalty, fine or term of
imprisonment under this Act shall
not relieve a person from
liability to pay a tax, including
an amount treated by this Act as
though it were tax, for which that
person is or may become liable
under this Act.
(2) In proceedings under this
Division, the production of a
certificate signed by the
Commissioner stating the name and
address of the person liable and
the amount of tax due or due and
payable by that person shall be
sufficient evidence of the amount
of tax due or due and payable by
that person.
Subdivision F: Remission and
Refund
Section 158—Remission
(1) Where the Commissioner is of
an opinion that the whole or a
part of the tax which is due by a
person, including an amount
treated by this Act as though it
were tax, cannot be effectively
recovered by reason of,
(a) considerations of poverty, or
(b) impossibility, undue
difficulty, or the excessive cost
of recovery,
the Commissioner may remit in
whole or part the tax due by that
person.
(2) Where good cause is shown by a
person liable for interest or
penalty under Subdivision B, the
Commissioner may remit in whole or
part any interest or penalty
charged under that Subdivision
whether before or after any
related proceedings for an offence
under Subdivision C are commenced
or concluded.
(3) The President may, if
satisfied that it is just and
equitable to do so, remit in whole
or part a tax due by a person
under this Act.
Section 159—Refunds and Set-off
(1) Where the Commissioner is
satisfied that tax has been paid
by a person, whether by
withholding, instalments, or
otherwise, in excess of the
person's tax liability to which
the payment or payments relate,
the Commissioner shall
(a) apply the overpaid tax in
reduction of any amount due by
that person in respect of
(i)
other taxes under this Act;
(ii) instalments of tax or
withholding of tax under this Act;
or
(iii) any other amount due to the
Service under this Act; and
(b) refund the remainder to that
person within three months of
becoming satisfied.
(2) Interest paid by a person
under section 143 shall be
refunded to that person to the
extent that the tax to which the
interest relates is found not to
have been due and payable.
(3) Where the Commissioner is
required to refund an amount of
tax to a person as a result of a
decision of a court under
Subdivision A of Division II, the
Commissioner shall pay interest
"at the minimum prevailing bank
rate". for the period commencing
on the date that person paid the
tax refunded and ending on the day
on which the refund is made. [As
amended by Internal Revenue
(Amendment) Act, 2004 (Act 669),
s. 6]
(4) Without limiting subsection
(1), a person may apply for a
refund under this section and the
application shall be made to the
Commissioner in writing within six
years of the later of
(a) the date on which the
Commissioner has served the notice
of assessment to which the refund
application relates, or
(b) the date on which the tax or
interest was paid.
(5) The Commissioner shall, within
forty-five days of making a
decision on a refund application
under subsection (1) or (2), serve
on the person applying for the
refund a notice in writing of the
decision.
(6) A person dissatisfied with a
decision referred to in subsection
(5) may only challenge the
decision under the objection and
appeal procedure in Subdivision A
of Division II as though the
decision were an assessment.
(7) For the purposes of paragraph
(b) of subsection (1), the
Commissioner shall, at the end of
each quarter, make recommendations
to the Minister of an amount,
determined on the basis of the
total revenue collected for the
quarter to be set aside in an
account designated as IRS Account
out of which refunds due under
this Act may be made after
certification by the Commissioner.
[As Inserted by the Internal
Revenue (Amendment) Act, 2003 (Act
644), s. 6].
PART IV—INTERPRETION
Division I: Residence
Section 160—Resident Individual
(1) Subject to subsections (2) and
(3), an individual is a resident
individual for a year of
assessment if that individual is
(a) a citizen of Ghana, other than
a citizen who has a permanent home
outside Ghana for the whole of the
year of assessment;
(b) present in Ghana for a period,
or periods amounting in aggregate
to, 183 days or more in any
twelve-month period that commences
or ends during the year of
assessment;
(c) an employee or official of the
Government of Ghana posted abroad
during the year of assessment; or
(d) a citizen who is temporarily
absent from Ghana for a period not
exceeding 365 continuous days
where that citizen has a permanent
home in Ghana.
(2) An individual who is a
resident individual under
subsection (1) for a year of
assessment (referred to in this
section as the "current year of
assessment"), but who was not a
resident individual for the
preceding year of assessment is
treated as a resident individual
in the current year of assessment
only for the period commencing on
the day that individual was first
present in Ghana.
(3) An individual who is a
resident individual for the
current year of assessment, but
who is not a resident individual
for the following year of
assessment is treated as a
resident individual in the current
year of assessment only for the
period ending on the last day on
which the individual is present in
Ghana during the current year.
Section 161—Resident Company
A
company is a resident company for
a year of assessment if it is
(a) incorporated under the laws of
Ghana, or
(b) has its management and control
exercised in Ghana at any time
during the year of assessment.
Section 162—Resident Body of
Persons
A
body of persons is a resident body
of persons for a year of
assessment if it
(a) is established in Ghana,
(b) has a resident person as a
manager at any time during the
year of assessment, or
(c) is controlled directly or
indirectly by a resident person or
persons at any time during the
year of assessment.
Section 163—Resident Partnership
A
partnership is a resident
partnership for a year of
assessment if, at any time during
the year of assessment, any
partner in the partnership is a
resident person.
Division II: General Definitions
Section 164—Associate
(1) For the purposes of this Act,
where a person, not being an
employee, acts in accordance with
the directions, requests,
suggestions, or wishes of another
person whether or not they are in
a business relationship and
whether or not those directions,
requests, suggestions, or wishes
are communicated to the
first-mentioned person, both
persons are treated as associates
of each other.
(2) Without limiting the
generality of subsection (1), the
following are treated as
associates of each other:
(a) an individual and a relative
of the individual, unless the
Commissioner is satisfied that
neither individual acts in
accordance with the directions,
requests, suggestions, or wishes
of the other individual;
(b) a person and a partner of that
person, unless the Commissioner is
satisfied that neither person acts
in accordance with the directions,
requests, suggestions, or wishes
of the other person; and
(c) a person who is an entity and
(i)
a person who, either alone or
together with an associate or
associates under another
application of this section,
controls or may benefit from fifty
per cent or more of the rights to
income or capital or voting power
of the entity, as the case
requires, either directly or
through one or more interposed
entities; or
(ii) a person who, under another
application of this section, is an
associate of a person to whom
subparagraph (i) applies.
Section 165—Calculation of Amounts
(1) With respect to an amount of
tax payable under this Act
(a) a part of a cedi which is less
than one-half of a cedi shall not
be taken into account; and
(b) a part of a cedi equal to or
more than one-half of a cedi shall
be reckoned as one cedi.
(2) For the purposes of this Act,
one currency point is equivalent
to ten thousand cedis.
(3) In this Act a penalty unit has
the meaning assigned to it under
the Fines (Penalty Units) Act,
2000 (Act 572).
Section 166—Underlying Ownership
In this Act, "underlying
ownership",
(a) in relation to an entity,
means an interest held in or over
the entity directly or indirectly
through one or more interposed
entities by an individual or by an
entity not ultimately owned by
individuals; or
(b) in relation to an asset owned
by an entity, is determined as
though the asset is owned by the
persons having underlying
ownership of the entity in
proportion to that ownership of
the entity.
Section 167—Definitions
In this Act, unless the context
otherwise requires,
“asset” means any kind of property
or any legal or equitable right
and includes goodwill and a part
of an asset;
"associate" has the meaning in
section 164;
"best judgement" in relation to
the assessment of a chargeable
income by the Commissioner means
the discretion of the Commissioner
to make an assessment in the
absence of returns or in cases
where the returns are incomplete
or are rejected by the
Commissioner;
"body of persons" means a body of
persons corporate or
unincorporated, whether created or
recognised under a law in force in
Ghana or elsewhere, and includes
(a) a trust, including an estate
of a deceased individual and an
incapacitated person's trust, but
not including a unit trust,
(b) a co-operative, and
(c) a government, a political
subdivision of a government, and a
public international organisation,
but does not include a company or
partnership;
"business" includes any trade,
profession, or vocation, but does
not include employment;
“chargeable asset” has the meaning
in section 97;
"Commissioner" has the meaning in
section 113;
“company” means a company or
corporation incorporated in Ghana
or elsewhere;
“consideration received”, in
relation to the realisation of a
chargeable or depreciable asset
has the meaning in section 100;
"cost base", in relation to a
chargeable or depreciable asset,
has the meaning in section 99;
"Constitution" means the
Constitution of the Republic of
Ghana;
"Court" means a court of competent
jurisdiction;
"debt obligation" means an
obligation to make a repayment of
money to another person, including
accounts payable and the
obligations arising under
deposits, debentures, stocks,
treasury bills, promissory notes,
bills of exchanges and bonds;
"depreciable asset" means any
asset of the kind and class
referred to in paragraph 2 of the
Third Schedule of Chapter I;
"endorsement fee" means a payment
made to a person for recommending
a product in an advertisement
launched to promote the sales of a
new product or to promote sales at
the expense of a competing product
whether in electronic, print media
or other wise;
"entity" means a company, body of
persons or partnership;
"executor" includes any executor,
administrator, or other person
administering the estate of a
deceased person;
"functions" includes powers and
duties;
"incapacitated person" means an
individual under the age of
eighteen years and an individual
who by reason of mental illness or
insanity is incapable of managing
her or his affairs;
"interest" includes
(a) any payment, including of a
discount or premium, made under a
debt obligation which is not a
return of capital;
(b) any swap or other payments
functionally equivalent to
interest;
(c) any commitment, guarantee, or
service fee paid in respect of a
debt obligation or swap agreement;
or
(d) a distribution by a building
society;
"Internal Revenue Service" means
the body established under the
Internal Revenue Service Law, 1986
(P.N.D.C.L. 143);
"monthly basic salary" means the
income represented by the monthly
salary paid to an employee and
applicable to the grade, rank or
position of that employee without
the addition of any allowance or
benefit paid in cash or given in
kind to that employee or
applicable to the grade, rank or
position of that employee; [As
Inserted by the Internal Revenue
(Amendment) Act, 2002 (Act 622),
s.17]
"mutual fund" means a public or
external company incorporated
solely to hold and manage
securities or other financial
assets and which has made
satisfactory arrangements for
ensuring that if an invitation is
made to the public to subscribe
for its shares the price at which
the shares are offered shall be
based on the net value of its
assets at the time of the offer
with no addition except for a
reasonable charge subject to the
proviso to section 37(1) (b) of
the Securities Industry Law, 1993
(P.N.D.C.L. 333) and is willing at
any time to repurchase any of its
shares from the holder at a price
based on the net value of its
assets at the time of the
repurchase without any deduction
except for a reasonable service
charge;
"partnership" means an association
of two or more individuals
carrying on business jointly for
the purpose of making profit;
"payment" includes an amount paid
or payable in cash or kind, and
any other means of conferring
value or benefit on a person;
"permanent establishment" means a
place where a person carries on
business, and
(a) a place where a person
carries on business through an
agent, other than a general agent
of independent status acting in
the ordinary course of business as
such;
(b) a place where a person has, is
using, or is installing
substantial equipment or
machinery; or
(c) a place where a person is
engaged in a construction,
assembly, or installation project
for ninety days or more, including
a place where a person is
conducting supervisory activities
in relation to such project;
“person” means an individual, a
company, or a body of persons;
“realisation”, in relation to a
chargeable or depreciable asset,
has the meaning in section 96;
"resident body of persons" has the
meaning in section 162;
“resident company” has the meaning
in section 161;
"resident individual" has the
meaning in section 160;
"resident partnership" has the
meaning in section 163;
“resident person” means a resident
individual, resident company,
resident body of persons, the
Government of Ghana, or a
political subdivision of the
Government of Ghana;
"Service" means the Internal
Revenue Service established under
the Internal Revenue Service Law,
1986 (PNDCL. 143);
"tax" means any tax imposed under
this Act and
(a) amounts payable under
Subdivision A and B of Division
III of Part X of Chapter I;
(b) amounts payable under
Subdivisions B, C, and D of
Division III of Part III of this
Chapter; and
(c) amounts payable under sections
67, 102, and 108;
"trust" means an arrangement
affecting property in relation to
which there is a trustee;
"trustee" includes
(a) a person appointed or
constituted as a trustee by act of
parties, by will, by order or
declaration of a Court, or by
operation of the law;
(b) an executor, administrator,
tutor, or curator;
(c) a liquidator, receiver,
trustee in bankruptcy or judicial
manager;
(d) a person having the
administration or control of
property subject to a trust,
usufruct, fideicommissum, or other
limited interest;
(e) a person acting in a
fiduciary capacity;
(f) a person having, either in a
private or official capacity, the
possession, direction, control, or
management of any property of an
incapacitated person; or
(g) a person who manages assets
under a private foundation or
other similar arrangement;
"underlying ownership" has the
meaning in section 166;
“unit trust” means an arrangement
whereby securities or any other
charge, other than a charge to
secure the debentures of one body
corporate are vested in trustees
and the beneficial interest in it
is divided into units, sub-units,
or other interests by whatever
name called with a view to an
invitation being made to the
public to acquire those units or
any of them; and
"year of assessment" has the
meaning in section 24.
PART V—REPEALS TRANSITIONAL
PROVISIONS AND COMMENCEMENT
Section 168—Repeals
(1) The following enactments or
parts of enactments and
Regulations made under those
enactments are repealed:
(a) Income Tax Decree, 1975 (S.M.C.D.
5),
(b) Capital Gains Tax Decree, 1975
(N.R.C.D. 347),
(c) Gift Tax Decree, 1975 (N.R.C.D.
348),
(d) section 23, section 26, and
paragraph (b) of section 27 of the
Minerals and Mining Law, 1986 (P.N.D.C.L.
153),
(e) Additional Profit Tax Law,
1985 (P.N.D.C.L. 122),
(f) section 32 of the Social
Security Law, 1991 (P.N.D.C.L.
247.)
(2) A right or privilege acquired
by a person under a repealed
enactment ceases to exist on the
date this Act comes into effect
unless it is expressly provided in
section 169 or in Regulations made
under section 114 that the right
or privilege is to remain in
existence.
Section 169—Transitional
Provisions
(1) The repealed enactments
continue to apply to years of
assessment prior to the year of
assessment in which this Act comes
into operation.
(2) All appointments and
authorisations made under the
repealed enactments and subsisting
at the date of commencement of
this Act are deemed to be
appointments and authorisations
made under this Act.
(3) Any arrangements between the
Government of Ghana and the
Government of a foreign country
with a view to affording relief
from double taxation made under
section 20 of the Income Tax
Decree, 1975 (S.M.C.D. 5) or its
predecessor and which is still in
force at 1st January 2001
continues to have effect under
section 111 of this Act.
(4) All forms and documents used
in relation to the repealed
enactment may continue to be used
under this Act, and all references
in those forms and documents to
provisions of and expressions
appropriate to the repealed
enactment are taken to refer to
the corresponding provisions and
expressions of this Act.
(5) A reference in this Act to
(a) a previous year of assessment
includes, where the context
requires, is a reference to a year
of assessment under the repealed
enactment; and
(b) this Act or to a provision of
this Act includes, where the
context requires, a reference to
the repealed enactment or to a
corresponding provision of the
repealed enactment, respectively.
(6) Subdivision C of Division I
(relating to records and
information collection),
Subdivision A of Division II
(relating to objections and
appeals), and Subdivision A of
Division III (relating to
collection) of Part III apply with
respect to assessments made on or
after 1st January 2001.
(7) Subdivision B (relating to
interest and penalties),
Subdivision C (relating to
offences), and Subdivision D
(relating to entities) of Division
III of Part III apply to tax due
and to offences committed on or
after 1 January 2001.
(8) A person that has been granted
approval to change the person's
accounting period to a period of
twelve months other than the
calendar year under subsection (6)
of section 11 of the Income Tax
Decree, 1975 (S.M.C.D. 5) may use
that period as the person's basis
period under this Act unless the
Commissioner determines otherwise
under subsection (4) of section 24
of this Act.
(9) The Minister responsible for
Finance may make Regulations under
section 114 with respect to
transitional measures related to
the implementation of this Act.
Section 170—Commencement
Subject to section 169 this Act
shall come into force for years of
assessment commencing on or after
1st January 2001.
SCHEDULES
FIRST SCHEDULE
RATES OF INCOME TAX
PART I: RATES OF INCOME TAX UPON
INDIVIDUALS
Section 1(2)
1. The income tax rates applicable
to resident individuals are:
CHARGEABLE INCOME RATE OF
TAX
First ¢1,500,000
Next ¢1,500,000
Next ¢3, 000,000
Next ¢21,000,000
Next ¢33,000,000
Exceeding ¢60,000,000 Nil
5%
10%
15%
20%
30%”
[As substituted by Internal
Revenue (Amendment) Act, 2004 (Act
669), s. 7 (a)]
2. The income tax rate applicable
to non-resident individuals is
20%.
PART II: RATES OF INCOME TAX UPON
COMPANIES
Section 1(2)
1. Subject to paragraphs 3, 4 and
5 the income tax rates applicable
to companies (other than a company
principally engaged in the hotel
industry) are:
Nature of Income |
Rate of Income Tax
(for every cedi) |
Income from the export of
non-traditional goods and
income of rural banks.[As
amended by the Internal
Revenue (Amendment) Act, 2002
(Act 622), s.18(a)(b).]
Other income |
8%
32.5% |
2. The income tax rate applicable
to a company principally engaged
in the hotel industry is 25%.
2A The income tax rate applicable
to the chargeable income of a
company referred to in sections 11
(2a) and 11 (2b) after the five
year tax holiday is
The above rates schedule shall
apply to agro processing
businesses in existence before the
financial year commencing 1st
January 2004 that use local raw
agricultural products as their
main inputs other than businesses
which process raw cocoa beans. [As
inserted by Internal Revenue
(Amendment) Act, 2004 (Act 669) s.
7 (b)]
3. The income tax rate applicable
to income derived by a financial
institution from a loan granted to
a farming enterprise for use by
that enterprise in the production
of its income is 20%.
4. The income tax rate applicable
to income derived by a financial
institution from a loan granted to
a leasing company for the use by
that company for the funding of
acquisition of assets for lease is
20%.
5. The income tax rate applicable
to a company listed on the Ghana
Stock Exchange is 30%.
(5A) The income tax rate
applicable to a company fully
listed on the Ghana Stock Exchange
in or after the financial year
commencing 1st January 2004 shall
be 25% for the first three years.
[ As inserted by Internal Revenue
(Amendment) Act, 2004 (Act 669),
s. 7 (c)]
6. The income tax rate applicable
to a company's chargeable income
"from a manufacturing business not
included in subsections (2a) and
2(b) of section 11. (other than
manufacturing business located in
Accra or Tema) is [As amended by
Internal Revenue (Amendment) Act,
2004 (Act 669), s. 7 (d)].
LOCATION |
RATE OF INCOME TAX |
Manufacturing business located
in regional capitals of Ghana
Manufacturing business located
elsewhere in Ghana |
75% of the rate of income tax
applicable to other income
under paragraph
50% of the rate of income tax
applicable to other income
under paragraph 1[As amended
by the Internal Revenue
(Amendment) Act, 2002 (Act
622), s.18(c)] 1 |
7. In this Part, "non-traditional
goods" means
(a) horticultural products;
(b) processed and raw agricultural
products grown in Ghana, other
than cocoa beans;
(c) wood products, other than
lumber and logs;
(d) handicrafts; and
(e) locally manufactured goods
PART III: RATE OF TAX APPLICABLE
TO BODIES OF PERSONS
Section 1(2)
The income tax rate applicable to
bodies of persons is 32.5%.
PART IV: WITHHOLDING TAX RATES ON
PAYMENTS TO RESIDENT PERSONS
Sections 2, 82, 83, & 84
1. The rate of withholding tax
applicable to interest payments to
a resident person under section 82
is 10%.
2. The rate of tax applicable to
dividends paid to a resident
person under paragraph (a) of
subsection (1) of section 2 and
the rate of withholding tax
applicable to such dividends paid
under section 83 is 10%.
3. The rate of withholding tax
applicable to payments under
paragraph (b) of subsection (1) of
section 2 and section 84 is
(a) in a case in which paragraphs
(a) to (d) of subsection (1) of
section 84 apply, 15%;
(b) in a case in which paragraph
(e) of subsection (1) of section
84 applies, 7½%; and
(c) in a case in which subsection
(2) of section 84 applies, 5%.
PART V: RATE OF NON-RESIDENT TAX
Sections 3 (2) & 85
The rate of tax applicable to a
payment to a non-resident person
or partnership under subsection
(2) of section 3 and the rate of
withholding tax applicable to such
a payment under section 85 is
(a) in the case of dividends and
interest, 10%; and
(b) in the case of royalties,
natural resource payments, and
rents, 15%.
(c) in the case of endorsement
fees or management and technical
service fees, 20%.[As amended by
the Internal Revenue (Amendment)
Act, 2002 (Act 622), s.18(d)].
PART VI: BRANCH PROFITS TAX
Section 66
The rate of tax applicable to a
non-resident person under section
66 is 10%.
PART VII: TRANSPORTATION AND
COMMUNICATIONS INCOME OF A
NON-RESIDENT PERSON
Section 67
The rate of tax applicable to a
non-resident person under section
67 is 15%.
PART VIII: WITHHOLDING OF TAX ON
PAYMENTS TO NON-RESIDENTS FOR
GOODS AND SERVICES
The rate of tax applicable to
non-residents under section 86 is
20%.
SECOND SCHEDULE
ACCOMMODATION AND VEHICLES
Sections 8(2) & 53(2)
1. The allowances and benefits
referred to in subsection (2) of
section 8 and subsection (2) of
section 53 shall be determined in
accordance with the following
tables:
Facility Provided
Value to be Added for Tax
Purposes
TABLE A: ACCOMMODATION
(a) Accommodation with
furnishing 15% of the
person's total cash emoluments
(b) Accommodation
only
10% of the person's total cash
emoluments
(c) Furnishing
only
5% of the person's total cash
emoluments
(d) Shared
accommodation
5% of the person's total cash
emoluments
TABLE B: VEHICLES
(a) Vehicle with
fuel 15%
of the person's total cash
emoluments up to a maximum of
¢300,000.00 per month
(b) Vehicle
only
7.5% of the person's total cash
emoluments up to a maximum of
¢150,000.00 per month
(c) Fuel
only
7.5% of the person's total cash
emoluments up to a maximum of
¢150,000.00 per month.
2. In this Schedule, a person’s
“total cash emoluments "means the
total of all income derived by the
person during the year of
assessment from any and all
employment and the total of any
amount required to be included in
that person's income under section
53 as may be applicable.
THIRD SCHEDULE
CAPITAL ALLOWANCES
Section 20
1. Capital Allowances Granted
(1) A person shall be granted
capital allowances for each year
of assessment in respect of
depreciable assets owned by the
person at the end of a basis
period ending within the year and
used in carrying on a business
during that period.
(2) The Commissioner shall be
notified about any new depreciable
asset acquired within one month
after it has been put into use in
the production of the income from
the business.
(3) Capital allowance which a
person is entitled to or granted
under this Act is not transferable
either separately or together with
any depreciable asset.[As
substituted by the Internal
Revenue (Amendment) Act, 2002 (Act
622), s.19(a).]
2. Classes of Depreciable Assets
(1) A depreciable asset is an
asset to the extent to which it is
used in carrying on a business,
which asset is likely to lose
value because of wear and tear,
obsolescence, or the effluxion of
time, but does not include trading
stock, and depreciable assets are
classified as follows:
Class Assets
Included
1 Computers
and data handling equipment.
2 (i) Automobiles;
buses and minibuses, goods
vehicles; construction and
earth-moving equipment, heavy
general purpose or specialised
trucks; trailers and
trailer-mounted containers; plant
and machinery used in
manufacturing;
(ii) Assets referred to in
subparagraph (3) in respect of
long term crop
planting
costs.
3 (i) Mineral and
petroleum exploration and
production rights; assets referred
to in subparagraph (4) in respect
of mineral and petroleum
prospecting, exploration, and
development costs;
(ii) Buildings, structures and
works of a permanent nature used
in respect of assets referred to
in item (i) which are likely to be
of little or no value when the
rights are exhausted or the
prospecting, exploration, or
development ends, as the case
requires;
(iii) Plant and machinery used in
mining or petroleum operations.
4 Railroad cars,
locomotives, and equipment;
vessels, barges, tugs, and similar
water transportation equipment;
aircraft; specialised public
utility plant, equipment, and
machinery; office furniture,
fixtures, and equipment; any
depreciable asset not included in
another class;
5 Buildings,
structures, and works of a
permanent nature other than those
mentioned in class 3;
6 Intangible assets,
other than those mentioned in
class 3
(2) For the purposes of
sub-paragraph (1), an asset is
treated as used by the person who
owns it in carrying on a business
where
(a) the asset is acquired by the
person for the purposes of a
business which the person intends
to carry on and, subsequently, the
asset is first used by the person
in that business;
(b) the asset has been used in the
business but is in temporary
disuse; or
(c) the person leases the asset on
an operating lease to another
person who uses it in carrying on
a business of that other person.
(3) Costs of a capital nature
incurred by a person in the
production of income from a
business which is a timber concern
or a large scale rubber, oil palm,
or other long term crop plantation
in respect of planting vegetation
from which timber, rubber, oil
palm, or other crops are derived
are treated as if they were
incurred in securing the
acquisition of an asset that is
used by the person in that
production.
(4) Costs incurred by a person in
the production of income from a
business in respect of mineral and
petroleum prospecting,
exploration, and development are
treated as if they were incurred
in securing the acquisition of an
asset that is used by the person
in that production.
3. Class 1, 2, 3, and 4
Depreciable Assets
(1) A person's depreciable assets
in classes 1, 2, 3 and 4 shall be
placed into separate pools for
each class of asset, and a capital
allowance granted for each pool
for a year of assessment with
respect to each basis period of
the person ending within the year
calculated according to the
following formula
A
x B x C/365
Where,
A
is the written down value of the
pool at the end of a basis period;
B
is the depreciation rate
applicable to the pool; and
C
is the number of days in the
period.
(2) The depreciation rate
applicable to the pools of
depreciable assets referred to in
sub-paragraph (1) are
Class Rate
1 40%
2 30%
3 80% of the
cost base of assets added to the
pool during the basis period and
50% of the balance of the pool, if
any
4 20%
(3) The written down value of a
pool at the end of a basis period
is the total of
(a) the written down value of the
pool at the end of the preceding
basis period after allowing for
the capital allowance granted
under sub-paragraph (1) with
respect to that preceding period;
(b) with respect to a pool of
Class 3 depreciable assets, 5% of
the cost base of assets added to
the pool during the preceding
basis period; and
(c) the cost base of assets added
to the pool during the period,
reduced, but not below zero, with
respect to each asset from the
pool realised during the period by
the consideration received from
the realisation of the asset.
(4) Where the amount of
consideration received by a person
from the realisation during a
basis period of any asset or
assets from a pool exceeds the
written down value of the pool at
the end of the period disregarding
that amount, the excess is
included in ascertaining the
person's income from the business
in which the asset or assets were
used for the year of assessment in
which the period ends.
(5) If the written down value of
a pool at the end of a basis
period, after allowing for the
deduction under sub-paragraph (1)
in respect of that period, is less
than ¢50,000, a capital allowance
is granted for the year of
assessment in which the period
ends for the amount of that
written down value and that
written down value shall be
reduced to zero.
(6) Where all the assets in a pool
are realised before the end of a
basis period, a capital allowance
is granted for the year of
assessment in which the period
ends for the amount of the written
down value of the pool as at the
end of that period.
(7) The cost base of a
depreciable asset is added to a
pool in the basis period in which
the asset is first used in
carrying on the business.
(8) For the purposes of this
Schedule only, the cost base of a
road vehicle, other than a
commercial vehicle, shall not
exceed ¢250 million. [ As amended
by Internal Revenue (Amendment)
Act, 2004 (Act 669), s. 8].
(9) In this paragraph,
"commercial vehicle" means
(a) a road vehicle designed to
carry loads of more than half a
tonne or more than thirteen
passengers; or
(b) a vehicle used in a
transportation or vehicle rental
business.
4. Class 5 and 6 Depreciable
Assets
(1) A person shall be granted for
a year of assessment a capital
allowance for each Class 5
depreciable asset with respect to
a basis period ending within the
year calculated using the
following formula:
A
x B x C/365
Where,
A
is the cost base of the asset;
B
is the rate of 10%; and
C
is the number of days in the basis
period.
(2) A person shall be granted for
a year of assessment a capital
allowance for each Class 6
depreciable asset with respect to
a basis period ending within the
year calculated using the
following formula
A/D x C/365
Where,
A
is the cost base of the asset;
C
is the number of days in the basis
period; and
D
is the useful life of the asset in
whole years calculated at the time
the asset is acquired by the
person.
(3) The total amount of capital
allowances granted to a person for
a Class 5 or 6 depreciable asset
for one or more years of
assessment shall not exceed the
cost base of the asset.
(4) Where a person realises a
Class 5 or 6 depreciable asset
during a basis period ending
within a year of assessment,
(a) there shall be included in
ascertaining the person's income
for the year from the business in
which the asset is used an amount,
if any, calculated using the
following formula
E
— F
or
(b) there shall be granted to the
person for that year an additional
capital allowance calculated using
the following formula
F
— E
Where
E
is the lesser of the consideration
received from the realisation or
the cost base of the asset; and
F
is the written down value of the
asset.
(5) For the purposes of this
paragraph, the "written down
value" of a depreciable asset of a
person means the cost base of the
asset as reduced by the total of
any capital allowances granted to
the person for the asset.
5. General Provisions
(1) Where a person incurs costs
in more than one basis period
which are included in the cost
base of a depreciable asset, this
Schedule applies as if the costs
incurred in different periods were
incurred for the acquisition of
separate depreciable assets of the
same class.
(2) Where a depreciable asset
owned by a person is only partly
used in the production of income
from a business then, for the
purposes of this Schedule only,
the cost base of the asset and any
consideration received from the
realisation of the asset shall be
proportionately reduced.
(3) Where a person uses
depreciable assets in the
production of income which is
exempt from tax
(a) that person is granted capital
allowances under this Schedule in
respect of those assets; and
(b) those allowances shall be
deducted in ascertaining the
income which is exempt,
and where the assets are
subsequently used by that person
in the production of income which
is not exempt from tax, only the
written down value of the pool or
written down value of the asset,
as the case requires, shall be
used in calculating capital
allowances granted to that person
in respect of that subsequent use.
(4) References in this Schedule to
cost base in relation to the
person incurring the cost, shall
not include an expenditure which
is allowed to be deducted in
computing the gains or profits of
any business or investment under
section 5 of this Act. [As amended
by the Internal Revenue
(Amendment) Act, 2002 (Act 622),
s.19(b).]
FOURTH SCHEDULE
RATES OF GIFT TAX
Section 105 (1)
The gift tax rates applicable to
individuals, companies and bodies
of persons are:
TOTAL VALUE OF TAXABLE GIFTS |
RATE OF TAX |
Not exceeding ¢500,000.00
Exceeding ¢500,000.00 |
Nil
10% of excess over ¢500,000.00 |
Date of Gazette Notification: 16th
February, 2001
amended by
INTERNAL REVENUE (AMENDMENT) ACT,
2002 (ACT 622)1
THE REVENUE AGENCIES (RETENTION OF
PART OF REVENUE) ACT, 2002 (ACT
628)2
INTERNAL REVENUE (AMENDMENT) ACT,
2003 (ACT 644)3
INTERNAL REVENUE (AMENDMENT) ACT
2004 (ACT 669)4
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