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INTERNAL REVENUE SERVICE LAW, 1986
(PNDCL 143)
As amended
ARRANGEMENT OF SECTIONS
Section
1. Establishment of Internal
Revenue Service.
2. Membership of the Service.
3. The Board.
4. Functions of the Board.
5. Tenure of office of Members of
the Board.
6. Meetings of the Board.
7. Committees of the Board.
8. The Commissioner of Internal
Revenue.
9. Duties of the Commissioner of
Internal Revenue.
10. Deputy Commissioners of
Internal Revenue.
11. Co-operation with
Organisations.
12. Staff of the Service.
13. Secretary.
14. Administrative Expenses.
15. Funds for the Service.
16. Acquisition of Property by the
Service.
17. Annual Report and Estimates.
18. Submission of Returns of
Revenue.
19. Internal Auditor.
20. Accounts.
21. Transfer of Assets and
Liabilities.
22. Regulations.
23. Interpretation.
24. Modification of Existing
Enactments.
IN pursuance of the Provisional
National Defence Council
(Establishment) Proclamation,
1981, this Law is hereby made:—
Section 1—Establishment of
Internal Revenue Service.
There is hereby established a
Service to be known as the
"Internal Revenue Service"
(hereafter in this Law referred to
as the "Service"), which shall
form part of the Public Services
of Ghana.
Section 2—Membership of the
Service.
The Service shall be made up of—
(a) the personnel of the Central
Revenue Department existing
immediately before the coming into
force of this Law;
(b) such other public officers
that may be transferred or
seconded to the Service;
(c) such other persons that may be
employed by the Service.
Section 3—The Board.
(1) The governing body of the
Service shall be the Internal
Revenue Service Board (hereafter
in this Law referred to as the
"Board").
(2) The Board shall consist of:
(a) a Chairman and six other
persons appointed by the Council;
(b) the Commissioner of Internal
Revenue;
(c) the Controller and
Accountant-General.
(3) The Chairman shall hold office
on such terms and conditions of
service as the Council may
determine.
Section 4—Functions of the Board.
The Board shall be responsible
for—
(a) ensuring the effective
assessment and optimum collection
of all taxes and penalties due to
the State under the relevant laws
administered by the Department
before the coming into force of
this Law and any other tax laws
that may be introduced from time
to time;
(b) making recommendations to the
Secretary on tax policy, tax
reform, tax legislation, tax
treaties and exemptions as may be
required from time to time;
(c) ensuring that all amounts
collected by the Service are paid
into the Consolidated Fund unless
otherwise provided in this Law;
(d) generally controlling the
management of the Service on
matters of policy, subject to the
provisions of this Law;
(e) appointing, promoting and
disciplining (including
dismissing) employees of the
Service;
(f) drawing up a scheme of service
prescribing the terms and
conditions of service as well as
the remuneration of the employees
of the Service.
Section 5—Tenure of office of
Members of the Board.
(1) A member of the Board, other
than the Commissioner for Internal
Revenue and the Controller and
Accountant-General shall hold
office for a period not exceeding
three years, and shall on the
expiry of that period be eligible
for re-appointment but for not
more than three terms.
(2) A member of the Board may at
any time resign his office by
notice in writing addressed to the
Council and may be removed from
office by the Council.
(3) Except as otherwise provided,
members of the Board shall hold
office on such terms and
conditions, including such
allowances or remuneration as the
Council may, on the recommendation
of the Secretary, determine.
Section 6—Meetings of the Board.
(1) The Board shall meet at such
times and places as the Chairman
may determine, but shall meet at
least once every three months.
(2) A special meeting of the Board
shall be called by the
Commissioner of Internal Revenue
in consultation with the Chairman.
(3) At every meeting of the Board
at which he is present, the
Chairman shall preside, and in his
absence, a member of the Board
appointed by the members present
from among themselves shall
preside.
(4) The quorum of every meeting of
the Board shall be five.
(5) The Board may at any time
co-opt any person to act as an
adviser at its meeting but no
person so co-opted shall be
entitled to vote at the meeting on
a matter for decision by the
Board.
(6) The validity of any
proceedings of the Board shall not
be affected by any vacancy in its
membership or any defect in the
appointment of any member thereof.
(7) Subject to the provisions of
this Law, the Board shall regulate
its own procedure.
Section 7—Committees of the Board.
The Board may for the discharge of
its functions appoint Committees
and may assign to such Committees
such functions as the Board may
determine.
Section 8—The Commissioner of
Internal Revenue.
The Head of the Service shall be
the Commissioner of Internal
Revenue who shall be appointed by
the Council.
Section 9—Duties of the
Commissioner of Internal Revenue.
Subject to the direction of the
Board on matters of policy, the
Commissioner of Internal Revenue
shall be responsible for the
day-to-day administration of the
Service.
Section 10—Deputy Commissioners of
Internal Revenue.
(1) There shall be three Deputy
Commissioners of Internal Revenue
who shall be appointed by the
Council.
(2) The Deputy Commissioners of
Internal Revenue shall head the
Finance and Administration,
Operations, Research, Planning and
Monitoring Departments and such
other Departments of the Service
as the Board may direct and shall
perform such functions as the
Commissioner of Internal Revenue
may in consultation with the
Board, direct.
Section 11—Co-operation with
Organisations.
The public services and other
organisations shall co-operate
with the Commissioner of Internal
Revenue to ensure the effective
assessment and optimum collection
of all direct taxes.
Section 12—Staff of the Service.
(1) The Board may engage such
staff as may be necessary for the
proper and efficient discharge of
its functions.
(2) The Board may upon the
recommendation of the Commissioner
of Internal Revenue engage the
services of such consultants or
experts as may be necessary.
(3) Such staff, consultants and
experts shall be engaged on such
terms and conditions as the Board
may determine.
(4) The Board may delegate any
power of appointment conferred on
it by this section to the
Commissioner of Internal Revenue.
Section 13—Secretary.
(1) There shall be a Secretary to
the Board who shall be appointed
by the Board.
(2) The Secretary to the Board
shall arrange the business of the
Board and cause to be recorded and
kept the minutes of all meetings
of the Board.
(3) The Secretary to the Board
shall also perform such other
functions as the Board may direct.
Section 14—Administrative
Expenses.
[Repealed by the Revenue Agencies
(Retention of Part of Revenue)
Act, 2002 (Act 628), s.3(a)].
Section 15—Funds for the Service.
[Repealed by the Revenue Agencies
(Retention of Part of Revenue)
Act, 2002 (Act 628), s.3(a)].
Section 16—Acquisition of Property
by the Service.
The Service may for and in
connection with the performance of
its functions acquire, hold,
manage or dispose of any movable
or immovable property and may
enter into such contracts and
transactions as may be expedient.
Section 17—Annual Report and
Estimates.
The Board shall every year submit
to the Council, the Secretary and
the Secretary responsible for
Finance and Economic Planning—
(a) a report of its activities and
operations during the preceding
financial year within three months
after the end of that financial
year;
(b) detailed estimates of its
revenue and expenditure for the
next financial year, three months
before the commencement of each
financial year.
Section 18—Submission of Returns
of Revenue.
The Secretary and the Secretary
responsible for Finance and
Economic Planning may at any time
call for returns of revenue or
revised revenue estimates from the
Commissioner of Internal Revenue.
Section 19—Internal Auditor.
(1) The Service shall have an
Internal Auditor.
(2) Subject to the provisions of
this Law, the Internal Auditor
shall be responsible to the
Commissioner of Internal Revenue
for the performance of his duties.
(3) As part of his duties under
this Law, the Internal Auditor
shall, at intervals of three
months, prepare a report on the
internal audit carried out by him
during the period of three months
immediately preceding the
preparation of the report, and
submit the report to the
Commissioner of Internal Revenue.
(4) Without prejudice to the
general effect of subsection (3)
of this section, the Internal
Auditor shall make in each report
such observations as appear to him
necessary as to the conduct of the
financial affairs of the Board
during the period to which the
report relates.
(5) The Internal Auditor shall
send a copy of each report
prepared by him under this section
to each of the following—
(a) the Secretary;
(b) the Auditor-General; and
(c) the Chairman of the Board.
Section 20—Accounts.
(1) The Service shall keep proper
books of account and proper
records in relation thereto and
the account books and records of
the Service shall be in such form
as the Auditor-General may
approve.
(2) The Service shall keep
separate records and accounts for:
(a) taxes and penalties collected
and paid into the Consolidated
Fund;
(b) funds provided for the
administration of the Service.[As
amended by the Revenue Agencies
(Retention of Part of Revenue)
Act, 2002 (Act 628), s.2(1)].
(3) The financial year of the
Service shall end on 31st day of
December in each year.
(4) The books and accounts of the
Service shall each year be audited
by the Auditor-General.
(5) The Auditor-General shall
forward a copy of the Report to
the Council within three months of
the end of each financial year.
Section 21—Transfer of Assets and
Liabilities.
(1) All rights, assets and
property vested in, or in any
manner held on behalf of or for
the purposes of the Central
Revenue Department immediately
before the commencement of this
Law shall be vested in the
Service.
(2) All liabilities and
obligations subsisting against the
Central Revenue Department
immediately before the
commencement of this Law shall
thereafter continue to subsist
between the Service and such other
party.
Section 22—Regulations.
The Secretary on the
recommendation of the Board may by
legislative instrument make
regulations to give full effect to
the provisions of this Law and, in
particular, provide guidelines for
the administration of all laws
administered by the Service.
Section 23—Interpretation.
(1) In this Law unless the context
otherwise requires:
"Board" means the Internal Revenue
Service Board.
"Commissioner of Internal Revenue"
means the person appointed under
section 8 of this Law.
"Council" means the Provisional
National Defence Council.
"Department" means the Central
Revenue Department in existence
immediately before the coming into
force of this Law.
"Secretary" means the Secretary
responsible for the National
Revenue Secretariat.
(2) Any reference in any enactment
to the Commissioner of Income Tax
or the Central Revenue Department
shall be construed as references
to the Commissioner of Internal
Revenue and the Service
respectively.
Section 24—Modification of
Existing Enactments.
Any enactment in force immediately
before the commencement of this
Law shall apply with such
modifications as may be necessary
to give full effect to the
provisions of this Law.
Made this 4th day of March, 1986.
FLT.-LT. JERRY JOHN RAWLINGS
Chairman of the Provisional
National Defence Council
Date of Gazette Notification: 4th
April, 1986.
amended by
THE REVENUE AGENCIES (RETENTION OF
PART OF REVENUE) ACT, 2002 (ACT
628).1 |
