Revenue Administration Act, 2016
Section
ARRANGEMENT OF SECTIONS
STAKEHOLDERS
Revenue Authority
Act 915
1.Administration
of tax laws
2.Authorisation
and protection of tax officers
3.Identification
of tax officers
4.Assistance
of experts
5.Assistance
of officers of public bodies
6.No
remuneration for complying or assisting with tax
laws
7.Official
secrecy
8.Accepting
security
Taxpayers
9.Tax
and taxpayers
10.Identifying
taxpayers and tax paid
11.Taxpayer
Identification Number or Tax Clearance Certificate
12.Application
for Taxpayer Identification Number
13.Issue
of Taxpayer Identification Number
14.Application
for and issue of Tax Clearance Certificate
15.Cancellation,
replacement and amendment of Taxpayer Identifi-
cation Number or Tax Clearance Certificate
16.Right
to information
17.Right
to representation
Tax Consultants
18.Prohibition
on representation and tax advice
19.Regulation
of approved tax consultants
OFFICIAL COMMUNICATION AND DOCUMENTATION
20 .. Official language
21.Official
currency
22.Forms
and notices
23.Authorised
or defective documents
24.Paper
documents filed with the Commissioner-General
25.Service
of paper documents
26.Electronic
document system
RETENTION AND PROVISION OF INFORMATION
Maintaining Documents
27. Maintaining documents
Provision of Information
28.Tax
returns
29.Assistance
in preparing tax return
30.Extension
of time to file tax return
31.Failure
to File Tax Return on time
32.Correction
of tax returns and other information
33.Access
to information and assets
34.Rights
and obligations of possessor
35.Notice
to obtain information
36.Audit
PRIMARY TAX LIABILITY
37.Assessment
38.Pre-emptive
assessment and security
39.Adjusted
assessment
40.Notice
of assessment
DISPUTE RESOLUTION
41.Tax
decisions
42.Objection
to a tax decision
43.Objection
decision
44.Appeal
against objection decision
45.Effect
of appeal
PAYMENT AND RECOVERY OF TAX
Regular Payment of Tax
46.Time
for paying tax
47.Extension
of time for paying tax
48.Manner
of paying tax
49. -Order of paying tax
50. Electronic tax accounts
Recovery of Tax from Taxpayer
51.Tax
as debt due to Government
52.Creation
and extent of charge over assets
53.Taking
possession of charged assets
54.Sale
of charged assets
55.Release
of charge over assets
56.Restraint
of person
57.Restraining
orders
Recovery from Third Parties
58.Managers
of entities
59.Receivers
60.Third
party debtors
61.Compliance
with notice
62.Recovery
from agent of non-resident
Reduction and Refund of Tax
63.Limits
on tax reductions
64.Reporting
of tax reductions
65.Remission
66.Application
for tax refund
67.Decision
on application
68.Payment
of tax refund
69 Ghana Revenue Authority General Refund Account
INTEREST, PENALTIES, OFFENCES AND PROCEEDINGS
Interest
70.Interest
for under-estimating income tax payable
71.Interest
for failing to pay tax
Penalties
72.Penalty
for failing to maintain documents
73.Penalty
for failing to file tax return
74.Penalty
for making false or misleading statements
75.Penalty
for unauthorised attempt to collect tax
76.Penalty
for aiding and abetting
Assessment of Interest and Penalties
77. Assessment of interest and penalties
Offences
78.Offence
of failing to comply with a tax law
79.Offence
of failing to register
80.Offence
of failing to pay tax
81.Offence
of making false or misleading statements
82.Offence
of impeding tax administration
83.Offences
by authorised and unauthorised persons
84.Offences
by entities
85.Causing
harm to a tax officer
86.Compounding
offences
Proceedings
87.Multiple
proceedings
88.Power
of search, seizure or arrest
89.Venue
for conducting tax proceedings
90.Appearance
in court
91.Admissibility
of documents
92.Burden
of proof
93.Tax
decisions unaffected
94.Security
not a defence
95.Publication
of names of offenders
96.Exemption
from transaction taxes
OTHER PROVISIONS
Tax Laws
97.Relationship
between tax laws
98.International
arrangements
99.Tax
avoidance arrangements
100.Practice
notes
101.Issue
of practice notes
102.Amendment
or revocation of practice notes
103.Private
or class rulings
104.Refusing
application for private or class ruling
105.Issue
of private or class ruling
106.Amendment
or revocation of private or class ruling
Miscellaneous Provisions
107.Regulations
108.Interpretation
109.Consequential
amendments and repeals
110.Transitional
provisions
111.Commencement
SCHEDULES
FIRST SCHEDULE
Transactions for which Taxpayer Identification
Number or Tax Clearance
Certificate is Required
SECOND SCHEDULE
Tax Returns and Assessments
THIRD SCHEDULE
Consequential Amendments and Repeals
Act 915
REPUBLIC OF GHANA
THE NINE HUNDRED AND FIFTEENTH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
REVENUE ADMINISTRATION ACT, 2016
An Act to provide for the administration and
collection of revenue by the Ghana Revenue Authority
and for related matters.
DATE OF ASSENT:
10th August, 2016.
PASSED by Parliament and assented to by the
President:
STAKEHOLDERS
Revenue Authority
Administration of tax laws
1. (1) The Ghana Revenue Authority is responsible,
through the Commissioner-General, for administering
and giving effect to tax laws in accordance with the
provisions of the Ghana Revenue Authority Act, 2009
(Act 791).
(2) Without limiting. the powers and
responsibilities of the Commissioner-General under
the Ghana Revenue Authority Act, 2009 (Act 791), the
Commissioner-General may give written directives
that are necessary for the administration and
implementation of tax laws.
Authorisation and protection of tax officers
2. (1) The Commissioner-General may delegate
functions specified under section 14 of the Ghana
Revenue Authority Act, 2009 (Act 791) to a tax
officer but shall not delegate functions to any
other person, even if the person is an expert or
public officer assisting in performing a function
under section 4 or 5 of this Act.
(2) For purposes of subsection (1), only a tax
officer of the rank of senior revenue officer or
above or specifically authorised by the Com-
missioner-General may perform a delegated function
under a tax law.
(3) In furtherance to subsection (2), only a
Commissioner may exercise the following powers on
behalf of the Commissioner-General:
(a)
the power to grant an extension of time for holding
documents or assets seized under section 33(5);
(b)
the power to remit a penalty under section 65 or
refund tax under section 66;
(c)
the power to compound offences under section 86;
(d)
the power to issue practice notes under section 100;
(e)
the power to exempt a person from the provisions of
section 116 (5) (c) of the Income Tax Act,
2015 (Act 896); and
(f)
the power to abate a duty under section 105 of the
Customs Act, 2015 (Act 891).
(4) The Commissioners may act jointly in exercising
powers referred to in subsection (3), including
where the exercise relates to more than one tax law.
(5) In this section, "Commissioner" means a
Commissioner appointed under section 16 of the Ghana
Revenue Authority Act, 2009 (Act 791).
Identification of tax officers
3. (1) The Commissioner-General shall issue each tax
officer of the Authority with an identity card.
(2) The identity card shall
(a)
incorporate the logo of the Authority;
(b)
have a picture of the tax officer;
(c)
state the name, rank and staff number of the tax
officer;
and
(d)
bear the signature of the Commissioner-General.
(3) A person dealing with a tax officer may require
the tax officer to show an identity card for
purposes of identifying the name and position of
that tax officer.
Assistance of experts
4.
(1) The Commissioner-General may engage experts, on
the terms and conditions that the
Commissioner-General considers necessary, to assist
the Authority in the proper performance of the
functions of the Authority.
(2) The appointment of an expert is ineffective
unless the appointment is in writing and is
expressly made under this section.
(3) An expert assisting the Authority to perform a
function shall be supervised by the
Commissioner-General or an Officer authorised by the
Commissioner -General.
(4) A person may refuse to deal directly with an
expert but that person shall not obstruct an expert
assisting a tax officer to perform a function.
(5) A person may report to the Commissioner-General
where that person is of the opinion that the
engagement of a particular expert involves a
conflict of interest.
(6) Where the Commissioner-General receives a report
under subsection (5), the Commissioner-General shall
take a decision and the decision of the
Commissioner- General on the matter is final.
(7) In this section, "expert" includes an authorised
agent taking possession of charged assets under
section 53 or selling charged assets under section
54.
Assistance of officers of public bodies
5.
(1) The Commissioner-General may request an officer
of a public body, including the police, to assist
tax officers of the Authority in the performance of
functions.
(2) A public body that receives a request under
subsection (1) shall take the necessary steps to
provide the assistance.
(3) A public officer assisting a tax officer to
perform a function shall be supervised by the tax
officer.
No remuneration for complying or assisting with tax
laws
6.
(1) Unless expressly provided for in a tax law, a
person is not entitled to remuneration or
reimbursement of expenses from the Authority for
complying with the provisions of a tax law.
(2) Subsection (1) does not apply to the
remuneration of
(a)
a tax officer, or
(b)
an expert or other public officer that is assisting
the Authority in the performance of its functions
as determined in accordance with this Act or
otherwise by the Commissioner -General.
(3) Regulations may provide for rewards payable to
persons
(a)
assisting in the recovery of tax; or
(b)
assisting with respect to discovery of an offence
committed under a tax law, the conviction of an
offender or the com- pounding of an offence.
(4) A person shall not recover a reward both under
Regulations made under this Act and under the
Whistleblower Act, 2006 (Act 720).
Official
secrecy
7. (1) This section applies to
(a)
a person who is employed or engaged by the Authority
or, at the request of the Authority, provides
assistance to the Authority; and
a person who was previously employed or engaged by,
or requested to provide assistance to the Authority.
(2) A person shall regard as confidential,
information or documents that by reason of the
employment, engagement or assistance of that person,
come into the possession of that person in
connection with a tax law.
(3) A person may disclose information or documents
referred to in subsection (2) to another person
where
(a)
the other person is currently employed or engaged by
the Authority or assisting the Authority in the
performance of a function;
(b)
the disclosure is for the purposes of this Act or
any other tax law; and
(c)
the Commissioner-General has authorised the
disclosure.
(4) The Commissioner-General may disclose
information or documents to a court or tribunal only
where necessary for the purpose of a tax law, or a
law that expressly requires the Commissioner-General
to disclose the information or documents.
(5) The Commissioner-General may disclose
information or documents to
(a)
the Minister;
(b)
a person in the service of the Government in a
revenue or statistical department where the
disclosure is necessary for the performance of the
official duties of the person;
(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
international arrangement, to the extent permitted
under that arrangement.
(6) A person, court, tribunal or authority receiving
information or documents under this section is
required to keep the information or document secret,
except to the minimum extent necessary to achieve
the purposes for which the disclosure is permitted.
(7) This section does not
(a)
apply to information that may be published in
relation to offenders under section 95; or
(b)
prevent disclosure of information relating to a
specific taxpayer to the taxpayer concerned or, with
the taxpayer's written consent, to another person;
or
(c)
prevent disclosure of information not relating to a
specific taxpayer, if the Commissioner-General has
authorised the disclosure.
(8) A person who contravenes this section commits an
offence and is liable on summary conviction to a
fine of not less than one hundred penalty units and
not more than one hundred and fifty penalty units or
to a term of imprisonment of not less than six
months and not more than one year or to both.
Accepting security
8.
(1) The Commissioner-General may accept security for
an obligation under a tax law on the terms and
conditions specified by the Commissioner-General.
(2) The security referred to in subsection (1) may
take the following forms:
(a)
bank deposit or banker's draft;
(b)
cash deposit or the equivalent of a cash deposit;
(c)
bond or guarantee;
(d)
undertaking by an authorised economic operator;
(e)
charge, lien, mortgage or other fixed interest over
property;
or
(f)
a combination of paragraph (a) to (e).
(3) Security may be accepted for a specific
obligation under a tax law or for multiple or
continuing obligations under a tax law. .
(4) This section does not
(a)
restrict the Commissioner-General from accepting a
particular security for an obligation under a tax
law; or
(b)
prevent the Commissioner-General from seeking or
requiring additional security.
(5) A security remains enforceable according to the
terms of the security against a property or person
despite any delay, extension, inactivity or other
temporary failure on the part of the Commissioner-
General to enforce the obligation.
Taxpayers
Tax and taxpayers
9.
(1) For the purpose of this Act "tax" means a duty,
levy, charge, rate, fee, interest, penalty or any
other amount imposed by a tax law or to be collected
by, or paid to, the Commissioner-General under a tax
law.
(2) Without limiting subsection (1), tax includes
(a)
withholding tax or an amount that should have been
collected or withheld by a withholding agent;
(b)
interest and penalties imposed by assessment under
section 77;
(c)
an amount required to be paid to the Commissioner-
General from a tax debtor or taxpayer under section
98(4) or a taxpayer under section 52(5);
(d)
an amount .required to be paid to the Commissioner-
General by a third party in respect of a tax
liability of another person under section· 58(1)
59(4) or (7), 60(3) or
62(1) or (4); and
(e)
an amount refunded in error that is recoverable
under section 68(6).
(3) A taxpayer is a person liable to pay tax
(4) For the purpose of subsection (2)(d),
(a)
the tax is a personal liability of the third party
though contingent on the continuing tax liability of
the other person;
and
(b)
in the case of non-payment of the tax, section 46 to
62 and section 70 to 86 apply in the same manner as
where the third party fails to pay any other tax
due.
Identifying
taxpayers
and tax paid
10.
(1) For the purpose of identification of tax payers
and promoting tax compliance, the
Commissioner-General shall maintain a system of
(a) taxpayer identification numbers; and
(b)
tax clearance certificates. '
(2) The Minister may, by legislative instrument,
make Regulations to provide for
(a)
the integration of the taxpayer identification
number system with a common numbering system for
identification of persons by other public bodies;
(b)
the coordinated joint administration of the taxpayer
identification number or common numbering system by
the Authority and other public bodies; and
(c)
the delegation to a public body of the power
conferred on the Commissioner-General with respect
to the taxpayer identification number system.
Taxpayer Identification Number or Tax Clearance
Certificate
11.
(1) A person shall show the Taxpayer Identification
Number of that person in any claim, declaration,
notice, return, statement or other document used for
the purpose of a tax law.
(2) Except where otherwise directed by the
Commissioner- General in writing, an institution
specified in the First Schedule shall request for
(a)
a Taxpayer Identification Number from a person who
conducts official business with that institution; or
(b)
a Tax Clearance Certificate from a person applying
for the matters or engaged in the transactions
listed in column two of Part II of the First
Schedule.
(3) A person shall, for the purpose of subsection
(2), submit to the relevant institution the Taxpayer
Identification Number or Tax Clearance Certificate
of that person as applicable.
(4) An institution referred to in the First Schedule
shall, upon a written notice from the
Commissioner-General, furnish the
Commissioner-General with a written statement
specifying
(a)
the value of transactions conducted by the
institution during the period specified in the
notice; and
(b)
the names, addresses and taxpayer identification
numbers of the persons with whom those transactions
were conducted.
(5) A person who
(a)
is not the holder of a Taxpayer Identification
Number or a Tax Clearance Certificate, or
(b)
has not been issued with a particular Taxpayer
Identification Number
shall not represent to another person, including a
tax officer, that that person has a Taxpayer
Identification Number or a Tax Clearance
Certificate.
Application for a Taxpayer Identification Number
12.
(1) A person who is liable to pay tax or who
conducts official business with an institution
specified in paragraph (a) of the First Schedule
shall apply to the Commissioner-General for a
Taxpayer Identification Number.
(2) The Commissioner-General may require a person to
apply for a Taxpayer Identification Number within a
period determined by the Commissioner-General.
(3) Despite subsection (1), a person who is a holder
of a Taxpayer Identification Number shall not apply
for another Taxpayer Identification Number.
(4) An application for a Taxpayer Identification
Number shall be
(a)
in the prescribed form;
(b)
accompanied by the prescribed documentary evidence
of the identity of the applicant; and
(c)
filed in the prescribed manner.
(5) A person who has applied for a Taxpayer
Identification Number but has not been issued with a
Taxpayer Identification Number shall notify the
Commissioner-General in writing immediately of any
changes in the details referred to in the
application.
(6) Where the Commissioner-General refuses an
application for a Taxpayer Identification Number,
the Commissioner-General shall serve the applicant
with written notice of refusal and reasons for the
refusal within twenty-one days of receipt of the
application.
Issue of Taxpayer Identification Number
13. (1) The Commissioner-General may issue a
Taxpayer Identification Number to an applicant
within twenty-one days of receiving an application.
(2) A Taxpayer Identification Number is issued when
the Com- missioner-General serves the person with a
taxpayer identification number certificate.
(3) A Taxpayer Identification Number issued under
this Act is not transferrable.
(4) A person may have only one Taxpayer
Identification Number at a time and it shall be used
for purposes of all the tax laws.
(5) The Commissioner-General shall not issue a
Taxpayer Identification Number to a person unless
the Commissioner-General is satisfied
(a)
about the true identity of the applicant; and
(b)
that the applicant does not have an existing
Taxpayer Identification Number: .
Application for and issue of Tax Clearance
Certificate
14. (1) A person may apply in writing to the
Commissioner-General for a Tax Clearance
Certificate.
(2) The applicant shall state the purpose for which
the Tax Clearance Certificate is required.
(3) The Commissioner-General shall issue a Tax
Clearance Certificate where the Commissioner-General
is satisfied that the applicant
(a)
has been issued with a Taxpayer Identification
Number and the number is specified in the
application;
(b)
has no outstanding tax, returns or other obligations
under any tax law; and
(c)
has satisfied any other condition that the
Commissioner- General may determine.
(4) A tax clearance certificate issued to an
applicant shall indicate
(a)
the name of the taxpayer;
(b)
the Taxpayer Identification Number;
(c)
the period for which the Tax Clearance Certificate
applies, which may be a continuous period and with
respect to that period, whether
(i) tax is due by the person;
(ii) arrangements have been made by the person for
the payment of tax that are satisfactory to the Com-
missioner-General; or
(iii) the Commissioner-General is currently
satisfied that the taxpayer is in good standing; and
(d)
any limit on the purpose for which the Tax Clearance
Certificate may be used.
(5) A Tax Clearance Certificate is valid only for
the period and purposes specified in the Tax
Clearance Certificate.
Cancellation, replacement or amendment of Taxpayer
Identification Number or Tax Clearance Certificate
15. (1) The Commissioner-General may, where the
Commissioner- General considers appropriate, by
notice in writing, cancel a Taxpayer Identification
Number or Tax Clearance Certificate issued to a
person if
(a)
the person identified in the Taxpayer Identification
Number Certificate or Tax Clearance Certificate is
fictitious;
(b)
the person identified in the Tax Clearance
Certificate does not accurately reflect the true
identity of the person to whom the certificate was
issued; or
(c)
the person to whom the Taxpayer Identification
Number or Tax Clearance Certificate was issued has
another Tax-
payer Identification Number or Tax Clearance
Certificate.
(2) The Commissioner-General may replace a Taxpayer
Identification Number or Tax Clearance Certificate
that has been cancelled by issuing a new Taxpayer
Identification Number in accordance with section 13
or a new Tax Clearance Certificate in accordance
with section 14.
(3) The holder of a Taxpayer Identification Number
shall notify the Commissioner-General in writing
within fifteen days of a change in the details
submitted in the application for the Taxpayer
Identification Number.
(4) Pursuant to subsection (3), the
Commissioner-General may, where the
Commissioner-General considers appropriate and
without cancelling a Taxpayer Identification Number,
issue a person with an amended Taxpayer
Identification Number Certificate.
Right to information
16. (1) A taxpayer is entitled, upon request, to
receive information from the Authority in relation
to the outstanding obligations of the taxpayer under
a tax law.
(2) Where the Authority fails to comply with
subsection (1) the failure shall not affect any
obligation of the taxpayer.
Right to representation
17. (1) A taxpayer or an entity has the right to be
represented in dealings with the Authority.
(2) The Commissioner-General may prescribe
(a)
conditions to be met by representatives; and
(b)
the form to be used by a taxpayer when appointing a
repre- sentative.
(3) The Authority is not obliged to communicate with
a taxpayer through the representative of the
taxpayer unless the Authority has received a duly
executed form appointing a representative who meets
the prescribed conditions. .
(b)
the person identified in the Tax Clearance
Certificate does not accurately reflect the true
identity of the person to whom the certificate was
issued; or
(c)
the person to whom the Taxpayer Identification
Number or Tax Clearance Certificate was issued has
another Tax- payer Identification Number or Tax
Clearance Certificate.
(2) The Commissioner-General may replace a Taxpayer
Identification Number or Tax Clearance Certificate
that has been cancelled by issuing a new Taxpayer
Identification Number in accordance with section 13
or a new Tax Clearance Certificate in accordance
with section 14.
(3) The holder of a Taxpayer Identification Number
shall notify the Commissioner-General in writing
within fifteen days of a change in
the details submitted in the application for the
Taxpayer Identification
Number.
(4) Pursuant to subsection (3), the
Commissioner-General may, where the
Commissioner-General considers appropriate and
without cancelling a Taxpayer Identification Number,
issue a person with an amended Taxpayer
Identification Number Certificate.
Right to information
16.
(1) A taxpayer is entitled, upon request, to receive
information from the Authority in relation to the
outstanding obligations of the taxpayer under a tax
law.
(2) Where the Authority fails to comply with
subsection (1) the failure shall not affect any
obligation of the taxpayer.
Right to representation
17.
(1) A taxpayer or an entity has the right to be
represented in dealings with the Authority.
(2) The Commissioner-General may prescribe
(a)
conditions to be met by representatives; and
(b)
the form to be used by a taxpayer when appointing a
representative.
(3) The Authority is not obliged to communicate with
a taxpayer through the representative of the
taxpayer unless the Authority has received a duly
executed form appointing a representative who meets
the prescribed conditions. .
Tax consultants
Prohibition on representation and tax advice
18.
(1) For purposes of this Act, only a person who is
an approved tax consultant may
(a)
represent a taxpayer;
(b)
provide advice primarily regarding the
interpretation or effect of a tax law; or
(c)
prepare a tax return, appeal or other document under
a tax law.
(2) A person who is not an approved tax consultant
shall not
(a) represent that that person is a tax
consultant; or
(b)
charge fees to offer assistance with respect to the
matters referred to in subsection (1).
(3) Subsections (1) and (2) do not apply to a lawyer
performing legal work in relation to a tax law.
Regulation of approved tax consultants
19.
The Minister may, by legislative instrument, make
Regulations to
(a)
provide for the registration and deregistration of
approved tax consultants and the conduct of the
activities of approved tax consultants; or
(b)
require an approved tax consultant or a lawyer to
report an arrangement to the Commissioner-General
where the tax consultant or lawyer promotes or
participates, whether directly or through another
person, in an arrangement that may result in a
benefit in relation to tax to that person.
OFFICIAL COMMUNICATION AND DOCUMENTATION
Official language
20.
(1) English is the official language of this country
and the Authority may refuse to recognise a
communication or document that is not in the
official language.
(2) Where a communication or document that is not in
the official language is relevant in applying a tax
law to a taxpayer, the Com- missioner-General may,
require the taxpayer to provide a translation of the
communication or document into the official
language.
(3) A request under subsection (2) shall be in
writing and served on the taxpayer.
(4) For the purpose of subsection (2), a taxpayer
shall use a trans- later approved by the
Commissioner-General and shall bear the cost of the
translation.
(5) Where a taxpayer fails to comply with subsection
(2), the Commissioner-General may have the
communication or document translated at the cost of
the taxpayer.
Official currency
21.
(1) The Cedi is the official currency for purposes
of the tax laws and, subject to any provision in a
tax law to the contrary, every amount taken into
account under a tax law is to be denominated in or
converted into Cedis.
(2) The conversion of a foreign currency amount into
Cedis shall be at the Bank of Ghana inter-bank
exchange rate applying on the date the amount is to
be taken into account under the tax law in question.
(3) Despite subsection (1), the Commissioner-General
may, on a written application, require a person to
take a foreign currency amount into account for the
purpose of keeping of records and submission of
accounts or any other tax transaction under a tax
law.
(4) A requirement of the Commissioner-General under
subsection (3) may
(a)
be by way of practice note;
(b)
apply to one or more tax laws and for one or more
periods; and
(c)
be subject to conditions that the
Commissioner-General determines.
(5) In exercising the discretion under
subsection (3), the Commissioner-General shall take
into consideration the volume of foreign currency
activities conducted by the person.
(6) The Commissioner-General may, by notice in
writing and for reasonable cause, revoke a
requirement under subsection (3).
(7) In this section, an amount is to be taken
into account under a tax law on the date the amount
accrues, or is received, derived, incurred, paid or
otherwise to be taken into account for purposes of
the tax law in question.
Forms and notices
22. (1) The Commissioner-General may, prescribe the
forms, notices and other documents required under a
tax law.
(2) A person shall use a prescribed form when filing
a document with the Commissioner-General or when a
form is otherwise required for the purpose of a tax
law.
(3) The Commissioner-General shall make the forms
available to the public
(a)
at the offices of the Authority;
(b)
on the website of the Authority; and
(c)
at any other location or by any other medium that
the Commissioner-General may determine.
Authorised
or defective documents
23.
(1) A document issued by the Commissioner-General
under a tax law is sufficiently authenticated if the
name or title of the Commissioner- General, or
authorised tax officer, is
(a)
in the case of a paper document, signed, printed,
stamped or written on the document; or
(b)
in the case of an electronic document, imbedded in
the document by way of electronic signature.
(2) A document issued under a tax law is not invalid
or defective if (a) the document is in
substance and effect, in conformity with the tax
law; and
(b)
the person to whom the document is addressed or to
whom the document applies is designated in the
document according to common understanding.
(3) The Commissioner-General may amend a document
issued to a person under a tax law if the document
contains a defect.
(4) Despite subsection (3), where the defect
involves a dispute in relation to the interpretation
of a tax law or facts involving a particular person,
the Commissioner-General shall not amend the part of
the document that contains the defect.
(5) The Commissioner-General may amend a practice
note, private ruling or class ruling, but only in
accordance with section 102 or 106, as the case
requires.
Paper documents filed with the Commissioner-General
24.
(1) A paper document is filed with the
Commissioner-General under a tax law if the document
is
(a)
delivered to an office of the Authority; or
(b)
sent by post to an office of the Authority.
(2) A paper document is received by the
Commissioner-General
(a)
when the document is posted, as long as it is
received in an office of the Authority within a
reasonable time; or
(b)
in any other case, when the Authority acknowledges
receipt by stamping.
Service of paper documents
25.
(1) The Commissioner-General sufficiently serves a
paper document on a person under a tax law if the
document is
(a)
handed to the person or, in the case of an entity,
to a manager of the entity;
(b)
left at or sent by post to the usual or last known
place of abode, business, office, post office box or
other address of the person; or
(c)
sent by registered post addressed to the usual or
last known place of abode, business, office, post
office box or other address of the person.
(2) For the purpose of subsection (1), the address
of a person includes
(a)
the address specified in the Taxpayer Identification
Number Certificate of that person; or
(b)
any conveyance to which the person belongs or has
lately belonged.
(3) A document is considered served at the following
time:
(a)
in the case of service by handing the document to
the person or leaving at a place, at the time of
handing or leaving;
(b)
in the case of service by registered post, at the
time the document is delivered or the person is
informed that the document awaits collection by the
person;
(c)
in the case of other service by post to an address
within the country, ten days after posting; and
(d)
in the case of other service by post to an address
outside of the country, the time at which the
document would normally be delivered in the ordinary
course of post.
Electronic document system
26.
(1) The Commissioner-General may establish and
operate a system for
(a)
electronic filing of documents;
(b)
electronic service of documents;
(c)
electronic payments by persons; and
(d)
the issuance of tax clearance certificates by
electronic means.
(2) For purposes of subsection (1), the
Commissioner-General may prescribe rules concerning
(a)
registration of persons who are required to
participate in the electronic document system,
including issue and cancellation of authentication
codes;
(b)
types of documents that may be transmitted through
the electronic document system, including format and
manner of transmission and the issue and
cancellation of document registration numbers;
(c)
resolution of difficulties, including correction of
errors, amendment of documents and procedure on
breakdown or interruption of the electronic document
system;
(d)
secrecy to be maintained, whether by persons using
the electronic document system on their own behalf
or using the system on behalf of other persons;
(e)
accessibility of the electronic tax clearance
certificates to the public bodies specified in the
First Schedule; and
(j)
any other matter necessary for the effective
administration of the electronic document system,
including those referred to in section 26(2) of the
Electronic Transactions Act, 2008 (Act 772).
(3) An electronic document is considered filed by a
person and received by the Commissioner-General
under a tax law when a document registration number
is created using the authentication code of that
person.
(4) An electronic document is considered served on a
person by the Commissioner-General under a tax law
when a document resignations number is created and
the document can be accessed using the
authentication code of that person.
(5) The Commissioner-General may authorise a printed
document as a copy of an electronic document filed
under subsection (3) or served under subsection (4).
(6) In a proceeding before a court or tribunal, a
copy of an electronic document authorised under
subsection (5) is conclusive evidence of the nature
and contents of that electronic document, unless the
contrary is proved.
RETENTION AND PROVISION OF INFORMATION
Maintaining Documents
Maintaining documents
27. (1) A person shall maintain, within the country,
necessary records
(a)
to provide information in respect of documents to be
filed with the Commissioner-General under a tax law;
(b)
to enable an accurate determination of tax payable
under a tax law; and
(c)
that may be prescribed by Regulations or by the
Commissioner -General.
(2) For the purpose of subsection (1), necessary
records include underlying documents, however
described in the nature of receipts, invoices,
vouchers, contracts or in the case of electronic
records, any medium by which the information can be
extracted.
(3) A document referred to in subsection (1) shall
be retained for a period of at least six years from
the relevant date or for the following period
whichever is longer:
(a)
where a person objects to a tax decision or appeals
against a tax decision, a document relevant to the
matter in dispute shall be retained until the matter
is decided and the decision executed;
(b)
where a person makes an application to the
Commissioner- General, a document relevant to the
application shall be retained until the application
is determined;
(c)
where a person seeks a refund of tax, a document
relevant to calculation of the refund shall be
retained until the refund is made; and
(d)
where a person has received notice of an
investigation by the Commissioner-General, a
document relevant to the investigation shall be
retained until the Commissioner- General notifies
the person in writing that the investigation is
completed.
(3) Despite subsections (1) and (2), the
Commissioner-General may, by service of a notice in
writing
(a)
relieve a person of the obligation to maintain
documents or the time for which they are to be
retained but only to the extent specified in the
notice; or
(b)
require a person to retain documents described with
reasonable certainty in the notice for a period
specified in the notice.
(4) Subsection (3) (b) applies whether or not
the documents pertain to the tax affairs of that
person.
(5) In this section, "relevant date" in relation to
a document means
(a)
in the case of income tax, the end of the year of
assessment or years of assessment for which the
document is relevant;
(b)
in the case of value added tax, the end of the
accounting \period or periods for which the document
is relevant; and
(c)
in the case of other taxes, the last date on which
the taxpayer is obliged to file a tax return or
other document with the Commissioner-General for
which the document is relevant.
Provision of Information
Tax returns
28. (1) A tax return to be filed by an individual
shall be signed by the individual and shall have a
declaration to the effect that the return is
complete and accurate.
(2) A tax return to be filed by an entity shall be
signed by a duly authorised manager of the entity
and shall have a declaration to the effect that the
return is complete and accurate.
(3) The Commissioner-General may, by notice, require
a person to file a tax return if before the date for
filing of tax returns
(a)
the person becomes bankrupt, is wound-up or goes
into liquidation; or
(b)
the Commissioner-General believes on reasonable
grounds that the person
(i) is about to leave the country indefinitely;
(ii) is otherwise about to cease activity or
business in the country; or
(iii) has committed an offence under a tax law; or
(c)
the Commissioner-General considers it appropriate,
including where the person fails to maintain
adequate documentation as required under section 27.
(4) The notice shall be in writing and served on the
person specifying
(a)
the period, part of a period or other event to be
covered by the tax return; and
(b)
the date by which the return is required to be
filed.
Assistance in preparing tax return
29.
(1) A person who, for remuneration, prepares or
assists in the preparation of a tax return or an
attachment to a tax return, for another person shall
sign the return and
(a)
specify the extent to which the person has examined
the relevant documents of the other person
maintained under section 27 and the nature of the
documents examined, and
(b)
certify that to the best of the knowledge of that
person, the return or attachment presents a true and
fair view of the circumstances to which the return
or attachment relates.
(2) Subsection (1) does not apply to an employee of
the person obliged to file the tax return.
(3) Where a person objects to signing a tax return
as required under subsection (1), that person shall
(a)
submit to the other person a written statement of
the reasons for the objection; and
(b)
sign the return noting that the signature is subject
to the statement submitted under paragraph (a).
(4) The statement submitted under subsection (3)
(a) shall be attached to and filed with the
return.
Extension of time to me tax return
30.
(1) A person who is required to file a tax return
under a tax law may apply to the
Commissioner-General for an extension of time to
file the return.
(2) An application under subsection (1) shall
(a)
be in writing;
(b)
state the reasons for the request for extension; and
(c)
be made before the due date for filing the return.
(3) The Commissioner-General may, by written notice,
extend the date by which the return is to be filed
if the Commissioner-General is of the opinion that
the applicant has shown reasonable cause for the
extension.
(4) An extension granted under this section may be
subject to the terms and conditions that the
Commissioner-General considers appropriate,
including the payment of security.
(5) The Commissioner-General may grant multiple
extensions but the extensions shall not in total
exceed sixty days from the date the return was
originally to be filed.
(6) The grant of an extension of time under this
section does not alter the date for payment of tax
as specified in the tax law under which the return
is to be filed.
Failure to file tax return on time
31.
(1) Where a person fails to file a tax return by the
due date required by a tax law the
Commissioner-General may, for the purpose of section
35, appoint another person to prepare and file any
information that the Commissioner-General may
require, including information required by the
return.
(2) The Commissioner-General shall make an
assessment of the tax liability of the person as
required by the tax law, including by way of
adjusted assessment, and for this purpose may use
any information in the possession of the
Commissioner-General including information obtained
under subsection (1).
(3) A tax return filed after the due date or in a
manner other than that specified in the relevant tax
law has no effect on a tax decision of the
Commissioner-General, including an assessment made
under subsection (2).
(4) Despite subsection (3) the Commissioner-General
shall take a tax return into account in deciding
whether or not to issue an adjusted assessment.
Correction of tax returns and other information
32. (1) If the Commissioner-General is not satisfied
with a tax return filed under a tax law, the
Commissioner-General shall use appropriate powers,
including those specified under section 33 to 36 to
obtain further information as is necessary to make
an assessment.
(2) A person shall not amend or correct a tax return
filed with the Commissioner-General after the due
date for filing the return without the permission of
the Commissioner-General.
(3) Where a person discovers that information
submitted to the Commissioner-General in a tax
return is incorrect or misleading in any material
particular, the person shall submit further
information to the Commissioner-General in respect
of the matter.
(4) The Commissioner-General may take into account
information received under subsection (3) in making
an assessment or adjusted assessment.
Access to information and assets
33. (1) For the purpose of a tax law, the
Commissioner-General shall for reasonable cause,
have without prior notice, full and free access to
premises, documents or assets
(a)
in the case of a dwelling house, conveyance or
public premises or where a document or asset is
located in a dwelling house or public premises
(i) between 6:00 a.m. and 6:00 p.m.; and
(ii) at other times as permitted by an order of a
magistrate under section 88; or
(b)
in any other case, at all times.
(2) The power of the Commissioner-General under
subsection (1) may be delegated to and exercised
only by a tax officer who is specifically authorised
in writing by the Commissioner-General for this
purpose.
(3) The Commissioner-General or an authorised tax
officer may, for the purpose of subsection (1)
(a)
make an extract or copy of any document to which
access is obtained including an electronic copy;
(b)
seize any document that; in the opinion of the
Commissioner-General or the authorised tax officer
may be used as evidence
(i) in determining the tax liability of a person
under a tax law; or
(ii) to show that an offence has been committed
under a tax law;
(c)
where a document is not available or a copy is not
provided on request by a person having access to the
document, seize an asset that the
Commissioner-General or authorised tax officer
reasonably suspects contains the document or stores
the document in any form;
(d)
in the case of premises used for business purposes,
inspect stock including opening the packaging and
taking of samples; and
(e)
park, moor or store at any premises or place a
vehicle or other equipment in 'use by the
Commissioner-General or authorised tax officer.
(4) Any document, asset or sample seized under
subsection (3) shall be signed for by the
Commissioner-General or authorised tax officer and
may be
(a)
retained for six months in the case of a document
seized under subsection (3)(b);
(b)
retained for up to one month in the case of an asset
seized under subsection (3)(c) but a document
obtained from that asset may be retained for six
months; and
(c)
retained or disposed of in the manner directed by
the Commissioner-General in the case of samples.
(5) The Commissioner-General may extend the periods
referred to in subsection (4) (a) and (b),
but the extension shall not exceed twelve months
from the date the document or asset is seized.
(6) An authorised tax officer exercising power
under this section may be assisted and accompanied
by an employee of the Authority, an expert appointed
under section 4 or a public officer assisting under
section 5.
(7) A person assisting or accompanying an authorised
tax officer shall be authorised for the purpose and
supervised by the authorised tax officer.
(8) This section has effect despite a provision in
an enactment relating to confidentiality, privilege
or the public interest with respect to the
production of, or access to, the document.
Rights and obligations of possessor
34.
(1) A possessor of any premises, place, document or
asset to which an authorised tax officer seeks or
obtains access under section 33 may request the tax
officer to produce the authorisation for the access.
(2) Where a tax officer fails to comply with a
request under subsection (1), the possessor may
refuse the tax officer access or require the tax
officer to leave the premises or place or return the
documents or assets to which the tax officer has
obtained access.
(3) A possessor of any premises, place, document or
asset shall provide reasonable facilities and
assistance to enable the Commissioner- General or an
authorised tax officer to perform functions
specified under section 33.
(4) The failure of a possessor to comply with
subsection (3) shall be considered a risk to the
collection of tax for the purpose of an application
under section 88.
(5) The owner of a document retained under section
33(4)(a) or (b) may examine and make copies
or extracts of the document at the expense of the
owner during office hours under the supervision of a
tax officer as determined by the
Commissioner-General.
(6) Where a document, asset or sample is lost,
damaged or otherwise disposed of as a result of the
exercise of a power under section 33, the
Commissioner-General shall pay the owner a
reasonable compensation as determined by the
Commissioner-General.
Notice to obtain information
35.
(1) The Commissioner-General may, by notice in
writing, require a person, including a public
official, whether or not liable to tax
(a)
to furnish, including by way of creation of a
document, within the time specified in the notice,
information that is described with reasonable
certainty in the notice;
(b)
to attend at the time and place designated in the
notice for the purpose of being examined on oath by
the Commissioner-General or by a tax officer
authorised in writing by the Commissioner-General
concerning the tax affairs of the person or any
other person; or
(c)
to produce, at an examination of the person under
paragraph (b), documents in the control of
the person that are described with reasonable
certainty in the notice.
(2) A notice issued under this section shall be
served by delivery of a copy of the notice to the
person to whom it is directed or leaving the notice
at the last and usual place of business or abode of
that person.
(3) A person to be examined on oath under subsection
(1)(b) is entitled to legal or other
representation.
(4) The Commissioner-General may exercise the power
in subsection (1) in conjunction with the power in
section 33.
(5) This section has effect despite a provision in
an enactment relating to confidentiality, privilege
or the public interest with respect to the
production of documents or access to documents.
Audit
36.
(1) The Commissioner-General may, in the exercise of
powers under this Act, including sections 33 and 35,
audit the tax affairs of a person.
(2) The Commissioner-General may select a person for
an audit having regard to
(a)
the history of the person with respect to compliance
or non- compliance with tax laws;
(b)
the amount of tax payable by the person;
(c)
the class of business or other activity conducted by
the person;
(d)
criteria developed under a compliance management
plan, which may include random selection of returns
for audit; or
(e)
other matters that the Commissioner-General
considers relevant for ensuring the collection of
tax due.
(3) A person who has been audited may be re-audited
if there are reasonable grounds, particularly having
regard to the matters referred to in subsection (2).
(4) The Commissioner-General shall give an advance
written notice to the person of an audit under this
section.
(5) An audit may be conducted for the purpose of
more than one tax law.
PRIMARY TAX LIABILITY
Assessment
37. (1) Assessment of tax is made by way of
(a)
self-assessment, where a person is obliged to file a
tax return; and
(b)
the Commissioner-General making an assessment in
other cases, including where a self-assessment is
adjusted.
(2) Where a person fails to file a tax return on
time, the Commissioner-General may, using best
judgment and information reasonably available to the
Commissioner-General, assess the person.
(3) The Commissioner-General may adjust an
assessment.
(4) The Commissioner-General may make an assessment
at any time, including an adjusted assessment where
the Commissioner-General discovers a case of fraud,
wilful default or serious omission by or on behalf
of a taxpayer.
(5) Subject to subsection (4), the power of the
Commissioner-General to make
(a)
an original assessment expires six years from the
date on which the Commissioner-General was first
entitled to make the assessment;
(b)
an adjusted assessment expires six years from
(i) the due date for filing the tax return that
gives rise to the assessment or, if later, the date
the tax return is filed where a self-assessment is
adjusted;
(ii) the date on which the Commissioner-General
serves the notice of assessment on the taxpayer
where any other original assessment is adjusted; or
(iii) the date referred to in subparagraph (i) or
(ii) in respect of the original assessment that is
adjusted where an adjusted assessment is adjusted.
(6) An assessment made under this section is treated
as an assessment made under the tax law that charges
the person or subject matter assessed.
Pre-emptive
assessment and security
38. (1) The Commissioner-General may, in the
circumstances specified in section 28 (3), make a
pre-emptive assessment of tax payable or to become
payable by a person under a tax law whether or not
the person is required to file a tax return.
(2) The Commissioner-General may, instead of making
a preemptive assessment, accept from a person
security for outstanding and future tax liabilities
as the Commissioner-General considers appropriate.
(3) The Commissioner-General shall use best
judgement and information reasonably available in
making a pre-emptive assessment or fixing the amount
of security.
(4) A pre-emptive assessment may be for a period or
with respect to an event or subject matter that the
Commissioner-General may specify in the notice of
assessment.
(5) Unless the Commissioner-General specifies
otherwise in the notice of assessment, a pre-emptive
assessment does not relieve a person from the
obligation to file a tax return or otherwise report
a taxable event as required by a tax law.
(6) The filing of a tax return, including where the
filing of the return results in a self-assessment,
does not affect a pre-emptive assessment.
(7) A tax paid with respect to a pre-emptive
assessment is credited against tax payable with
respect to a self-assessment that covers the same
period, event or tax.
Adjusted
assessment
39. (1) The Commissioner-General may adjust an
assessment in a manner that ensures that the
taxpayer is liable for the correct amount of tax in
the circumstances to which the assessment relates.
(2) The Commissioner-General shall use best
judgement and information reasonably available in
making an adjusted assessment.
(3) The Commissioner-General shall not adjust an
assessment that has been adjusted pursuant to a
decision of a court unless the decision is vacated.
(4) An assessment ceases to have effect to the
extent to which it is adjusted.
Notice of assessment
40. (1) Where the Commissioner-General makes an
assessment under a tax law, the Commissioner-General
shall serve a written notice of the assessment on
the taxpayer.
(2) In addition to any requirement of the tax law in
question, the
Commissioner-General shall, in the notice of
assessment, state
(a)
the name of the taxpayer;
(b)
the Taxpayer Identification Number of the taxpayer;
(c)
the assessment by the Commissioner-General of the
tax payable by the taxpayer for the period, event or
matter to which the assessment relates;
(d)
the amount of tax remaining to be paid after any
relevant credits, reductions or pre-payments;
(e)
the manner in which the assessment is calculated;
(f)
the reason why the Commissioner-General has made the
assessment;
(g)
the date by which the tax is to be paid; and
(h)
the time, place and manner of objecting to the
assessment.
DISPUTE RESOLUTION
Tax decisions
41. (1) A "tax decision" is a decision made by the
Commissioner- General under a tax law, including an
assessment or omission, but does not include
(a)
a practice note, class ruling, or private ruling;
(b)
a decision or omission to issue, refuse or revoke a
practice note, class ruling or private ruling;
(c)
a decision or omission that affects a person only as
a tax officer or employee or agent of the Authority;
(d)
a decision or omission of the Commissioner-General,
including an objection decision under section 43; or
(e)
a decision to compound an offence under a tax law.
(2) A tax decision is made
(a)
in the case of an assessment made by the
Commissioner- General, when the notice of assessment
is served on the taxpayer; and
(b)
in the case of any other tax decision, when the
Commissioner-General serves the affected person with
written notice of the decision.
(3) In the absence of the notice referred to in
subsection (2)(b), a person may elect to
treat the Commissioner-General as having made an
unfavourable tax decision, if .
(a)
the tax law specifies a time by which the
Commissioner- General is to make a decision and that
time expires; or
(b)
a time frame is not specified in the tax law and
ninety days have elapsed after the affected person
files a request for the Commissioner-General to make
the decision.
(4) The following are conclusive evidence that a tax
decision has been made and is correct:
(a)
in the case of a self-assessment, the tax return
that resulted in the assessment or a document under
the hand of the Commissioner-General purporting to
be a copy of the tax return;
(b)
in the case of other assessments, the notice of
assessment or a document under the hand of the
Commissioner- General purporting to be a copy of the
notice; and
(c)
in the case of any other tax decision, written
notice of the decision under the hand of the
Commissioner-General or a document under the hand of
the Commissioner-General purporting to be a copy of
the decision.
(5) For the purpose of this section, a reference to
the Commissioner-General making a decision includes
the Commissioner-General exercising a discretion,
making a judgement, giving a direction, expressing
an opinion, granting an approval or consent,or being
satisfied in respect of a matter. .
Objection to a tax decision
42.
(1) Subject to a tax law to the contrary, a person
who is dissatisfied with a tax decision that
directly affects that person may lodge an objection
to the decision with the Commissioner-General within
thirty days of being notified of the tax decision.
(2) An objection to a tax decision shall be in
writing and state precisely the grounds upon which
the objection is made.
(3) A person may, before the expiration of the
period specified in subsection (1), apply in writing
to the Commissioner-General for an extension of time
to file an objection.
(4) Where the Commissioner-General is satisfied that
there are reasonable grounds for the extension, the
Commissioner-General may grant the application for
extension and shall serve notice of the decision on
the applicant.
(5) An objection against a tax decision shall not be
entertained unless the person has
(a) in the case of import duties and taxes, paid all
outstanding taxes including the full amount of the
tax in dispute; and
(b) in the case of other taxes, paid all outstanding
taxes including thirty percent of the tax in
dispute.
(6) Despite subsection (5) the Commissioner-General
may waive, vary or suspend the requirements of
subsection (5) pending the determination of the
objection or take any other action that the
Commissioner- General considers appropriate
including the deposit of security.
(7) The Commissioner-General shall consider the need
to maintain the integrity of the dispute resolution
procedure and the need to protect Government revenue
and the integrity of the tax system as a whole in
exercising a discretion under subsection (6).
(8) A tax decision to which an objection is not made
within thirty days is final.
(9) In this section, "tax decision" means the tax
decision objected to, as may have been amended by an
objection decision.
Objection decision
43. (1) After consideration of an objection, the
Commissioner- General may vary the tax decision in
whole or in part or disallow the objection.
(2) The Commissioner-General shall, within sixty
days of receipt of an objection, serve the objector
with a notice of the decision including the reasons
for the decision.
(3) Where the Commissioner-General does not serve
the person with notice of the decision within sixty
days, the person may, by notice in writing to the
Commissioner-General, elect to treat the
Commissioner- General as having made a decision to
disallow the objection.
(4) A decision is made in respect of an objection
(a)
on the date the person is served with notice of the
decision; or
(b)
if a person makes an election under subsection (3),
thirty days from the date the person files the
election with the Commissioner-General.
(5) A notice served on a person in respect of an
objection is conclusive evidence that a decision has
been made and is correct.
Appeal against objection decision
44. A person who is dissatisfied with a decision of
the Commissioner- General may appeal against the
decision to the Court within thirty days of the
decision.
Effect of Appeal
45. An appeal against an objection decision does not
operate as a suspension of the objection decision.
PAYMENT AND RECOVERY OF TAX
Regular Payment of Tax
Time for paying tax
46. (1) Tax is payable at the time specified in the
tax law under which the tax is charged.
(2) Despite subsection (1) tax is payable
(a)
in the case of tax payable on assessment under
section 37 or 38, on the date specified in the
notice of assessment served under section 40;
(b)
in the case of tax payable on an adjusted assessment
under section 39, thirty days from the date on which
the person assessed is served with a notice of
assessment under section 40;
(c)
in the case of interest and penalties, on the date
specified in the notice of assessment served under
section 77;
(d)
with respect to amounts required to be paid to the
Commissioner-General under sections 52(5), 60(3) or
62(1) or (4), on the date set out in the relevant
notice;
(e)
with respect to a liability under section 58(1), at
the same time as the tax is payable by the entity;
(f)
with respect to amounts required to be paid to the
Commissioner-General under section 59(4) or (7),
seven days after the sale from which the amount is
set aside or the
failure to set aside, respectively; or
(g)
with respect to recovery of an amount refunded in
error under section 68(6), seven days after the
Commissioner- General serves notice requiring
payment of the amount.
(3) Subject to section 42(6) , tax remains payable
despite any dispute or review proceedings,
irrespective of whether the proceedings are
administrative, judicial, quasi-judicial or
appellate in nature.
Extension of time for paying tax
47. (1) A taxpayer may apply, in writing, to the
Commissioner- General for an extension of time to
pay tax under a tax law.
(2) On receipt of an application under subsection
(1), the Commissioner-General may, where good cause
is shown,
(a)
extend the date on which the tax or part of the tax
is payable on the terms and conditions that the
Commissioner- General considers appropriate
including the deposit of security; and
(b)
notify the applicant in writing of the decision.
(3) A taxpayer may re-apply to the
Commissioner-General before the end of the extension
period but an extension of time to pay tax shall not
exceed twelve months in aggregate.
(4) Where an extension is granted and the taxpayer
is permitted to pay by instalments and the taxpayer
defaults in paying any of the instalments, the whole
balance of the tax outstanding becomes payable
immediately.
Manner of paying tax
48. (1) The Minister may, by legislative instrument,
make Regulations to prescribe
(a)
the manner and form in which tax is to be paid;
(b)
the procedure by which banks may be approved to
accept payment of tax, including
(i) the form of payments that approved banks may
accept; and
(ii) the manner in which approved banks shall
account to the Commissioner-General for tax
received;
. (c)
limits on the quantum of tax that may be paid and
the form of payments that may be accepted at
particular offices of the Authority; and
(d)
the form of payment that may be accepted at
particular offices of the Authority.
(2) Where a cheque tendered in payment of tax is
dishonoured, the payment is ineffective and the
Commissioner-General may use all available po vers
to recover the tax.
Order of paying tax
49.
(1) This section applies where a taxpayer is liable
to pay
(a)
more than one type of tax under a tax law; or
(b)
more than one type of tax under more than one tax
law, and the taxpayer makes payment that is less
than the total amount of tax outstanding in each
circumstance.
(2) Despite any system established by the
Commissioner-General under section 50, where this
section applies, the Commissioner-General may
determine which amount of tax is considered paid.
Electronic tax accounts
50.
(1) The Commissioner-General may establish and
operate an electronic system of taxpayer tax
accounts.
(2) The system may be established and operated
separately or as part of the electronic document
system established under section 26.
(3) For this purpose, the Commissioner-General may
prescribe
Rules for
(a)
the debiting of tax when it becomes payable;
(b)
the crediting of tax paid;
(c)
the allocation of tax paid against tax payable; and
(d)
other matters of the type described in section 26
(2).
Recovery of Tax from Taxpayer
Tax as debt due to Government
51.
(1) Tax is a debt due to the Government on the date
it becomes payable.
(2) The Commissioner-General may initiate
proceedings in court for the recovery of unpaid tax
as well as the cost of the suit.
Creation and extent of charge over assets
52. (1) Where a taxpayer fails to pay tax on the due
date, the Commissioner-General may create a charge
in favour of the Government over an asset owned by
the taxpayer by serving the taxpayer with a notice
in writing specifying
(a)
the name of the taxpayer;
(b)
the Taxpayer Identification Number of that taxpayer;
(c)
the asset charged and the extent of the charge;
(d)
the tax or taxes to which the charge relates; and
(e)
the power of the Commissioner-General to take
possession and sell the assets as specified under
sections 53 and 54.
(2) A charge created over an asset under this
section does not have effect until
(a)
in the case of land or a building, the Commissioner-
General files an application to register the charge
with the Chief Registrar of Lands; or
(b)
in any other case, the notice creating the charge is
served on the taxpayer.
(3) Where the Commissioner-General creates a charge
over an interest in land or a building, the Chief
Registrar of Lands shall register the charge on the
title of the interest in the land or building.
(4) The assets ofa taxpayer are charged to the
extent of the unpaid tax, interest accruing with
respect to that tax under section 54 and cost of
charge and sale of the charged assets.
(5) The Commissioner-General may, at any time, serve
on a tax-
payer a notice in writing
(a)
specifying the cost of charge and sale of charged
assets incurred by the Commissioner-General prior to
the date of service; and
(b)
requiring the taxpayer to pay the cost to the
Commissioner- General by the date specified in the
notice.
Taking possession of charged assets
53. (1) A taxpayer shall not deal or purport to deal
with a charged asset once the Commissioner-General
takes possession of the asset.
(2) The Commissioner-General takes possession of a
charged asset by serving the taxpayer with a notice
in accordance with subsection (3) and
(a)
physically securing possession of the asset, in the
case of tangible charged assets; and
(b)
making the notice publicly available in the case of
intangible charged assets.
(3) A notice served under subsection (2) shall
specify (a) the name of the taxpayer;
(b)
the Taxpayer Identification Number of the taxpayer;
(c)
the charged asset and the intention of the
Commissioner- General to sell the assets as well as
the proposed method and time of sale;
(d)
in the case of tangible charged assets, the manner
in which the Commissioner-General will take physical
possession of the asset and the place at which the
asset will be taken; and
(e)
that the taxpayer may no longer deal with the
charged asset without the written consent of the
Commissioner-General.
(4) The notice may be incorporated in or attached to
the notice of creation of the charge under section
52 (1).
(5) Where the Commissioner-General decides to take
physical possession of tangible assets under this
section the following rules apply:
(a)
the Commissioner-General may exercise the power
either directly or indirectly through an authorised
agent at any time after the notice is served;
(b)
where the assets are currently in the possession of
a person other than the taxpayer, the
Commissioner-General shall serve that person with a
copy of the notice prior to taking possession;
(c)
the Commissioner-General may, using reasonable
force, enter at any time premises or place described
in the notice and may request the assistance of the
police for the purpose of taking possession;
(d)
the Commissioner-General shall provide the taxpayer
with an inventory of assets seized at the time of
taking possession; and
(e)
in the case of movable assets, the
Commissioner-General may store the assets, at the
cost of the taxpayer, at a place that the
Commissioner-General considers appropriate.
(6) The Commissioner-General shall return an asset
secured under this section
(a)
immediately, where the charge is released under
section 55; and
(b)
in any other case, within .sixty days of taking
possession, unless within that period, the asset is
sold under section 54.
(7) The return of an asset under subsection (6)
(b) does not release the charge over that asset,
but the Commissioner-General may not retake
possession of the asset for sixty days.
Sale of charged
assets
54.
(1) The sale of a charged asset under this section
shall be by public auction.
(2) Where the Commissioner-General takes possession
of a charged asset under section 53 and decides to
sell the asset, the following rules shall apply:
,
(a)
the Commissioner-General shall issue a public notice
of sale before selling the charged asset;
(b)
the sale shall be carried out
(i) in the case of an interest in land or a
building, thirty days after taking possession;
(ii) in the case of a perishable movable asset,
within twenty-four hours after taking possession;
and
(iii) in the case of any other asset, ten days after
taking possession.
(3) The Commissioner-General may exercise the power
of sale
(a)
either directly or indirectly through an authorised
agent;
and
(b)
without a court order.
(4) Subsection (2) is not applicable where the
Commissioner-General sells charged assets with the
consent of the taxpayer.
(5) Where the Commissioner-General sells a charged
asset, the sale proceeds shall be utilised in the
following order:
(a)
first, for the cost of charge and sale of the asset;
(b)
second, for the outstanding tax and interest accrued
with respect to that tax under section 71;
(c)
third, any other unpaid tax; and
(d)
the remainder to the taxpayer.
(6) The Commissioner-General shall, after applying
the sale proceeds in accordance with subsection (5),
serve the taxpayer with a written notice within
fourteen days of the sale specifying the manner in
which the sale proceeds were applied.
(7) The taxpayer may, within ninety days of receipt
of the notice under subsection (6), apply to the
Commissioner-General for the return of the remainder
'of the sale proceeds, if any.
(8) Where the sale proceeds are insufficient to pay
the full amount secured by the charge, the
Commissioner-General may proceed to collect the
amount outstanding in accordance with the procedure
for the recovery of tax from a taxpayer or from
third parties.
(9) This section does not restrict the exercise of
rights that the Commissioner-General has under
another security, whether over the same or a
different asset.
Release of charge over
assets
55.
(1) A charge created under section 52 is released
when
(a)
the Commissioner-General sells the asset in
accordance with section 54; or
(b)
the taxpayer pays to the Commissioner-General the
full amount secured by the charge.
(2) Where a charge over an interest in land or a
building is released
(a)
the Commissioner-General shall, within seven days of
the release, lodge the release with the Lands
Commission; and
(b)
the Executive Secretary of the Lands Commission
shall remove the entry of the charge from the title
of the interest in the land or the building within
seven days from the date the Commissioner -General
lodged the release.
Restraint of person
56.
(1) Where a person fails to pay tax on the due date
and the Commissioner-General has reason to believe
that the person may leave the country, the
Commissioner-General may, by notice in writing,
request the Comptroller-General of Immigration to
prevent the person from leaving the country.
(2) The Comptroller-General of Immigration shall, on
receiving the notice under subsection (1), prevent
the person from leaving the country for a period of
seven days from the time the notice is served on the
Comptroller-General of Immigration.
(3) The Commissioner-General shall withdraw the
notice if the person pays the tax or arranges to pay
the tax in a manner satisfactory to the
Commissioner-General.
(4) The High Court-may, on an application by the
Commissioner- General, extend the period referred to
in subsection (2).
Restraining orders
57.
(1) This section applies where
(a)
the Commissioner-General believes on reasonable
grounds that tax has not been paid or will not be
paid; or
(b)
for thirty days after a written warning has been
issued by the Commissioner-General, a person fails
to register under a tax law.
(2) For the purpose of subsection (1) (a),
the Commissioner- General may use reasonable force
to
(a)
distrain the goods; or
(b)
distrain and search premises, a place, conveyance or
other asset on or in which the Commissioner-General
believes on reasonable grounds that the goods are
located.
(3) For the purpose of subsection (l)(b), the
Commissioner- General may use reasonable force to
restrain a person from using the premises or place
to conduct business.
(4) The Commissioner-General may exercise the powers
referred to in subsections (2) and (3) in
conjunction with other powers of the
Commissioner-General under this Act.
(5) The Commissioner-General shall, on issuing a
restraining order,
(a)
serve a written notice on the possessor bf
the asset, premises or place and, where there is
more than one possessor, service of the notice on a
single possessor is sufficient; or
(b)
where no possessor is available, leave the notice at
the premises or place where the distraining takes
place.
(6) The written notice shall
(a)
list the assets, premises or place to be distrained;
(b)
state that the assets, premises or place have been
distrained and the reason for the distraint; and
(c)
set out the terms and conditions for release,
including any security required, and conditions for
the disposal of the assets seized.
(7) The Commissioner-General may restrain a person
from carrying on business in any premises or place
or distrain an asset
(a)
in a case under subsection(l)(a), for a period as
may be necessary to raise a pre-emptive or adjusted
assessment and exercise the powers in sections 52,
53 and 54, or for a period of ten days, whichever is
less; and
(b)
in a case under subsection (l)(b), until the
person registers under a tax law.
(8) If within the period referred to in subsection
(7), any other person does not prove to the
satisfaction of the Commissioner-General that ,that
person is the owner of the goods referred to in
subsection (2)(a), the Commissioner-General
may treat the goods as charged assets and sell the
goods in accordance with section 54.
Recovery from Third Parties
Managers of entities
58. (1) Where an entity fails to pay tax on time, a
person who is or has been a manager of the entity
during the relevant time is jointly and severally
liable with the entity for payment of the tax.
(2) Subsection (1) applies irrespective of whether
the entity ceases to exist.
(3) Subsection (1) does not apply to a manager who
has exercised the degree of care, diligence, and
skill that a reasonably prudent person in the
position of the manager would have exercised in
preventing the initial and continuing failure to pay
tax.
(4) Subsection (3) does not apply to a manager who
is a current partner of a partnership.
(5) An amount payable to the Commissioner-General by
a manager under this section is a personal tax
liability of the manager.
(6) Where a manager pays tax by reason of a
liability under sub- section (1) the manager may
recover the payment from the entity as a debt due.
(7) In this section
"manager" of an entity includes a person purporting
to act as a
manager of that entity; and
"relevant time" means six months before the event
that gave rise to the tax liability of the entity.
Receivers
'59. (1) A person appointed as a receiver of an
asset situated in the country shall notify the
Commissioner-General in writing of the appointment
(a)
within fourteen days of the appointment; or
(b)
on the date the receiver takes possession of the
asset, whichever occurs first.
(2) A receiver shall not distribute assets unless
the receiver has accounted for the assets to the
Commissioner-General.
(3) The executor of the estate of a deceased
individual or the legal representative of a person
who is incapacitated shall complete and submit
returns under this Act on behalf of the deceased or
incapacitated person with respect to matters
occurring prior to the appointment of the executor
or legal representative.
(4) The Commissioner-General shall within fourteen
days of receiving a notice under subsection (1)
serve the receiver with a written notice specifying
an amount that appears to the Commissioner-General
to be sufficient to provide for tax due or that will
become due by the taxpayer.
(5) A receiver shall, after receiving a notice under
subsection (4),
(a)
sell sufficient relevant assets to raise the amount
referred to in the notice after payment of any debt
that has priority; and
(b)
pay to the Commissioner-General on account of the
taxpayer the amount set aside.
(6) In making payment out of the proceeds of the
sale, a receiver shall give priority to unpaid taxes
over all other debts of the taxpayer.
(7) To the extent that a receiver fails to set aside
an amount as required by subsection (4), the
receiver is personally liable to pay to the
Commissioner-General, on account of the tax
liability of the taxpayer, the amount that should
have been set aside.
(8) An amount payable to the Commissioner-General by
a receiver under this section is a personal tax
liability of the receiver.
(9) In this section
"receiver" means a person who, with respect to an
asset situated in the .country, is
(a)
a liquidator of an entity;
(b)
a receiver appointed out of court or by a court in
respect of an asset or entity;
(c)
a trustee for a bankrupt person;
(d)
a mortgagee in possession;
(e)
an executor, administrator or heir of a deceased
individual's estate;
(f)
conducting the affairs of an incapacitated
individual; or
(g)
a successor in a corporate reorganisation; "relevant
assets" means assets held in the capacity of a
person as receiver; and
"taxpayer" means the person whose assets come into
the possession of the receiver and includes a
deceased individual and an entity that is
reorganised.
Third party debtors
60. (1) Where a taxpayer fails to pay tax on the due
date, the Com- missioner-General may serve a notice
in writing on a third party debtor.
(2) As soon as practicable after service of the
notice on the third party debtor, the
Commissioner-General shall serve the taxpayer with a
copy of the notice.
(3) The third party debtor shall, on receiving a
notice under subsection (1), pay to the
Commissioner-General by the date specified in the
notice an amount not exceeding the lesser of
(a)
the tax due by the taxpayer;
(b)
the money owed by the third party debtor to the
taxpayer; and
(c)
the amount specified in the notice.
(4) The date for payment specified in the notice
shall not be before either
(a)
the date the money owed by the third party debtor
becomes payable to the taxpayer or is held on behalf
of the taxpayer; or
(b)
the date the third party debtor is served with the
notice.
(5) A third party debtor who is served with a notice
under subsection (1) shall not pay any amount to the
taxpayer until the Commissioner- General withdraws
the notice.
(6) An amount payable to the Commissioner-General by
a third party debtor under this section is a
personal tax liability of the third party debtor.
(7) The following are treated as money owed to a
taxpayer:
(a)
money currently owing, or that may subsequently
become owing, to a taxpayer;
(b)
money held, or that may subsequently be held, for or
on account of a taxpayer;
(c)
money held, or that may subsequently be held, on
account of another person for payment to a taxpayer;
or
(d)
money held by a person who has authority from a
third person to pay the money to a taxpayer.
(8) In this section
"money" includes a debt obligation denominated or
payable in money; and
"third party debtor" in relation to a taxpayer,
means a person who owes money to the taxpayer.
Compliance with notice
61.
(1) A third party debtor who pays money to the
Commissioner- General in accordance with section 59
or 60 shall be
(a)
treated as having acted with the authority of the
taxpayer and of all other persons concerned; and
(b)
indemnified in respect of the payment against all
proceedings, civil or criminal, and all processes,
judicial or extra judicial.
(2) Subsection (1) applies despite any provision to
the contrary in an enactment, contract or agreement.
(3) A notice under section 59 or 60 ceases to have
effect once the tax or obligation referred to in the
notice is paid or otherwise satisfied.
(4) Where a third party served with a notice under
section 59 or 60 is unable to comply with the notice
by reason of lack of money owing to or held for the
taxpayer, the third party shall give notice of that
fact to the Commissioner-General.
(5) A notice under subsection (4) shall
(a)
be in writing;
(b)
set out the reasons for the inability to comply; and
(c)
be filed with the Commissioner-General as soon as
practicable after the third party becomes aware of
the inability and, in any event, before the payment
date specified in
section 59 or 60.
(6) The Commissioner-General may, on receipt of a
notice under subsection(4), by notice in writing
served on the third party
(a)
cancel or amend the notice given under section 59 or
60; or
(b)
reject the notice filed under subsection (4).
(7) The filing of a third party notice has no effect
on the third party's personal liability for amounts
under section 59 or 60 unless the
Commissioner-General cancels or amends the notice
given under section 59 or 60.
(8) In this section, "third party" means a receiver
served with a notice under section 59 or a third
party debtor served with a notice under section 60.
Recovery from agent of non-resident
62. (1) Where a non-resident taxpayer fails to pay
tax on the due date or the Commissioner-General
believes on reasonable grounds that a non- resident
taxpayer will not pay tax on the due date, the
Commissioner- General may, by notice in writing,
require a person who is in possession of an asset
owned by the non-resident taxpayer to pay tax on
behalf of the taxpayer.
(2) A person served with a notice under subsection
(1) is required to pay tax up to the market value of
the asset but not exceeding the amount of the unpaid
tax.
(3) For purposes of this section
(a)
a taxpayer who charters an aircraft or ship under a
charter for a period of more than three years is
treated as owning the aircraft or ship during that
period;
(b)
the captain of an aircraft or ship is treated as
being in possession of the aircraft or ship;
(c)
a trustee is treated as being in possession of trust
assets; and
(d)
trust assets are treated as jointly owned by the
beneficiaries of the trust.
(4) The Commissioner-General may, by service of a
notice in writing, require a resident partnership or
a resident partner to pay tax due or that may become
due by a non-resident partner.
(5) A resident partnership and a resident partner
are jointly and severally liable to pay the tax up
to the amount of the share of the non- resident
partner in the net assets of the partnership.
(6) An amount payable to the Commissioner-General
by an agent, resident partnership or resident
partner under this section is a personal tax
liability of the agent, resident partnership or
resident partner.
(7) Where a person, including a resident
partnership, makes a payment to the
Commissioner-General in compliance with a notice
under subsection (1) or (4)
(a)
the person may recover the payment from the
non-resident taxpayer or non-resident partner and
may retain out of any assets of the non-resident
taxpayer or non-resident partner in, or coming into,
the possession of that person, an amount not
exceeding the payment; and
(b)
the non-resident taxpayer, non-resident partner or
any other person shall not have a claim against the
person with respect to the retention.
Reduction and Refund of Tax
Limits on tax reductions
63.
(1) In assessing, collecting and recovering tax, the
Commissioner- General shall ignore a tax reduction
except where the tax reduction is sanctioned by law.
(2) Subject to article 174 of the Constitution, a
Ministry, Department or Agency shall not negotiate
or enter into an agreement for the waiver or
variation of tax except with the approval of the
Minister.
Reporting of tax reductions
64.
(1) The Commissioner-General shall submit to the
Minister a quarterly report on the total amount of
reductions of tax granted to or claimed by
taxpayers.
(2) Each report of the Commissioner-General shall
categorise reductions of tax by reference to
(a)
reductions granted that comply with section 63,
subcategorised by reference to
(i) each statutory provision by which the reduction
is granted; and
(ii) any criteria or factors set out in Regulations;
(b)
reductions granted that do not comply with section
63, including reasons why the reductions were
granted; and
(c)
reductions claimed but not granted, including
reasons why the claims were not granted.
Remission
65. (1) The Commissioner-General may remit tax that
has been assessed, but only on grounds of
impossibility of collection of the tax.
(2) Where a person who is liable to pay a penalty
shows good cause in writing to the
Commissioner-General, the Commissioner-General may
(a)
refrain in whole or in part from assessing the
penalty;
(b)
extend the time for payment of the penalty on
conditions that the Commissioner-General may
determine; or
(c)
remit or waive in whole or in part a penalty that
has been assessed.
(3) The power in subsection (2)(c) may be
exercised whether or not the penalty has been paid
and whether or not proceedings for an offence have
been commenced or concluded.
(4) In this section, a "penalty" includes an asset
liable to forfeiture or seized by the
Commissioner-General on grounds that the asset is
liable to forfeiture.
Application for tax refund
66. (1) A person may, within three years of the
relevant date, apply to the Commissioner-General for
a refund of tax paid in excess of the tax liability
of that person.
(2) The Commissioner-General shall prescribe the
form of the
application.
(3) An application for a tax refund shall be in
writing and contain an explanation as to how the
excess is calculated and attach evidence relevant to
that calculation.
(4) In this section, "relevant date" means the later
of
(a)
the event that gave rise to payment of the excess
tax;
(b)
the date on which a tax return is filed by the
person with respect to the payment; and
(c)
the date of payment.
Decision on application
67. (1) The Commissioner-General shall, within sixty
days of receipt of an application for a refund under
section 66, consider and make a decision that the
Commissioner-General considers appropriate.
(2) Without limiting subsection (1), the
Commissioner-General may
(a)
reject the application where the
Commissioner-General is of the opinion that the
applicant has not paid excess tax; or
(b) if satisfied that the applicant has paid
excess tax, make a refund to the applicant.
(3) Despite subsection (2), where the
Commissioner-General is not satisfied that the
applicant has paid excess tax, the Commissioner-
General may request further information as may be
reasonable in order to make a final decision on the
application.
(4) The Commissioner-General shall serve the
applicant with a written notice of the decision made
under subsection (2) or (3) within thirty days.
(5) Pursuant to subsection (3), the
Commissioner-General shall reconsider the
application and make a decision by serving notice on
the applicant within sixty days of receiving the
original application.
Payment of tax refund
68.
(1) Where the Commissioner-General is satisfied that
a person has paid excess tax, either on application
for a refund by that person, or by reason of an
order of a court or tribunal, the
Commissioner-General shall
(a)
apply the excess in reduction of any outstanding tax
liability of the person; and
(b)
refund the remainder to the person within ninety
days of making the decision.
(2) Where the Commissioner-General accepts to refund
part of the excess tax applied for by a person, the
Commissioner-General shall refund the amount
accepted, irrespective of whether the person files
an objection against ,the decision of the
Commissioner-General.
(3) Where, the Commissioner-General fails to refund
the excess tax to the person within ninety days as
specified in subsection (l)(b), the
Commissioner-General is liable to pay interest on
the amount.
(4) The interest is calculated as fifty per cent of
the statutory rate and is for the period
(a)
commencing on the earlier of
(i) the date the Commissioner-General makes a refund
decision under section 67; and
(ii) the day the person files an objection against
the tax decision that gave rise to payment of the
excess tax; and
(b)
ending on the day the refund is made.
(5) Interest paid by a person under a tax law with
respect to tax not paid on time shall, to the extent
that the tax is found not to have been payable, be
refunded to the person, with any interest under
subsection (4).
(6) Where the Commissioner-General refunds tax in
error, the Commissioner -General may recover the
refund as a tax liability.
Ghana Revenue Authority General Refund Account
69.
(1) The Minister shall set aside an amount of not
more than six percent of the total revenue collected
under this Act and any other enactment administered
by the Commissioner-General, in an account
designated as the "Ghana Revenue Authority General
Refund Account.".
(2) The Ghana Revenue Authority General Refund
Account shall be used by the Commissioner-General to
make payments for
(a)
refunds due under this Act; and
(b)
refunds due under any other tax law.
(3) Where at the end of a calendar year there is an
amount out- standing as credit in the Ghana Revenue
Authority General Refund Account after refunds
certified by the Commissioner-General have been
paid, the outstanding amount shall be paid into the
Consolidated Fund by the Commissioner-General in
accordance with the Financial Administration Act,
2003 (Act 654) and the Financial Administration
Regulations, 2004 (L.1. 1802).
INTEREST, PENALTIES, OFFENCES AND PROCEEDINGS
Interest
Interest for under-estimating income tax payable
70.
(1) This section applies where an estimate or a
revised estimate of tax payable by a taxpayer with
respect to chargeable income tax for a year of
assessment under section 122 of the Income Tax Act,
2015 (Act 896) is less than ninety percent of the
correct amount.
(2) Where this section applies, the taxpayer is
liable to pay interest for the period from
(a)
the date the first instalment for the year of
assessment is payable; until
(b)
the due date by which the person files a return of
income for the year of assessment under section 124
of the Income Tax Act, 2015 (Act 896) .
(3) The amount of interest that a taxpayer is
required to pay for each period under subsection (2)
is calculated as one hundred and twenty five per
cent of the statutory rate, compounded monthly,
applied to the difference between
(a)
ninety percent of the total amount that would have
been paid by way of instalments during the year of
assessment to the start of the period had the
estimate of the person
equalled the correct amount; and
(b)
the amount of income tax paid by instalments during
the year of assessment to the start of the period.
(4) For the purpose of calculating interest payable
under subsection (3), an extension granted under
section 30 or 47 or suspension under section 42(6)
or 45 (3) shall be ignored.
(5) In this section, "correct amount" means the
actual income tax payable by the taxpayer for the
year of assessment under the Income Tax Act, 2015
(Act 896).
Interest for failing to pay tax
71. (1) A person who fails to pay tax by the date on
which the tax is payable is liable to pay interest
for each month or part of a month for which any part
of the tax is outstanding.
(2) The interest is calculated as one hundred and
twenty-five percent of the statutory rata,
compounded monthly, applied to the amount
outstanding at the start of the period.
(3) For the purpose of calculating interest under
subsection (1) (a) tax is payable
(i) in the case of an adjusted assessment, on the
date on which tax is payable under the original
assessment; and
(ii) in any other case, on the date specified in
section 46; and
(b)
an extension granted under section 30 or 47 or a
suspension under section 42(6) shall be ignored.
(4) Where a withholding agent is liable for interest
for failing to pay withholding tax in respect of a
payment made by the agent, the agent may not recover
the interest from the person subject to the
withholding tax.
Penalties
Penalty for failing to maintain documents
72. (1) A person who fails to maintain proper
documents as required by a tax law is liable to pay
for each month or part of a month during which the
failure continues
(a)
seventy- five percent of the tax attributable to
that period where the failure is deliberate; or
(b)
in any other case, the lesser of the amount referred
to in paragraph (a) and two hundred and fifty
currency points.
(2) The Commissioner-General shall determine tax
attributable to a period on a just and reasonable
basis including apportioning tax assessed with
respect to a larger period or by reference to
taxable events happening within the period.
Penalty for failing to file tax return
73. (1) A person who fails to file a tax return as
required by a tax law is liable to pay a penalty of
five hundred currency points and a further penalty
of ten currency points for each day that the failure
continues.
(2) In the case of communications service tax, the
penalty is two thousand currency points and a
further penalty of five hundred currency points for
each day that the failure continues.
(3) A penalty imposed under this section applies
separately for a failure to file an estimate and a
failure to file a tax return incorporating the final
amount.
(4) Where a person fails to submit the tax return
four months after the imposition of the penalty for
non-submission, the Commissioner- General may, in
addition to the penalty imposed, prosecute the
person to compel the person to submit the return.
Penalty for making false or misleading statements
74.
(1) A person who
(a)
makes a statement to a tax officer that is false or
misleading in a material particular; or
(b)
omits from a statement made to a tax officer, any
matter or thing without which the statement is
misleading in a material particular is liable to a
penalty of
(c)
one hundred percent of the tax shortfall where the
statement was made without reasonable excuse; or
(d)
thirty percent of the tax shortfall in any other
case.
(2) Despite subsection (1), the penalty imposed
under this section shall be
(a)
cumulatively increased by twenty percent for each
subsequent application of this section to the person
within the last five years; and
(b)
reduced by twenty percent if the person voluntarily
discloses the error before its discovery by a tax
officer or before the next tax audit of the person,
whichever is earlier.
(3) A statement is made to a tax officer when the
statement is made orally, in writing or in any other
form to a tax officer acting in the performance of
duties under a tax law and includes a statement made
(a)
in a document or information required to be filed
under a tax law;
(b)
in a document furnished to a tax officer otherwise
than under a tax law;
(c)
in answer to a question asked of a person by a tax
officer; or
(d)
to another person with the knowledge or reasonable
expectation that the statement will be passed on to
a tax officer.
(4) A person who contravenes section 11(5), 12(3) or
18(2) is treated as making a false or misleading
statement to a tax officer.
(5) A person who, in relation to the important or
exportation of goods or in relation to the trade in
services or intangible property or any tax law,
mis-states or falseifies a price, quantity, volume,
other substantive term of invoice or value for the
purpose of tax evasion including manipulating value
added taxes, customs duties, income taxes, excise
duties, levies or any other form of taxes or revenue
collected by the Government is treated as making a
false or misleading statement to a tax officer.
(6) Without limiting this section, where a person
files a tax return in which the tax stated as
payable is less than the actual tax liability
(a)
by a margin of between thirty and fifty percent, the
person is treated as making a false or misleading
statement to a tax officer; or
(b)
by a margin of fifty one percent or more, the person
is treated as making a false or misleading statement
to a tax officer without reasonable excuse.
(7) For the purpose of subsection (2) (a),
this section applies where a person is served with a
notice of assessment under section 77.
(8) In this section, "tax shortfall" means the
underpayment of tax that, in the opinion of the
Commissioner-General, may have resulted if the
inaccuracy of the statement had gone undetected.
Penalty for unauthorised attempt to collect tax
75. (1) A person who, without authorisation,
collects or attempts to collect an amount of tax pa
able under a tax law or an amount that the person
describes as tax, is liable to pay the following
penalty:
(a)
where the collection or attempt is made knowingly or
recklessly, two hundred percent of the amount
collected or attempted to be collected; or
(b)
in any other case, the amount collected or attempted
to be collected.
(2) Despite subsection (1), the penalty is
cumulatively increased by twenty percent for each
subsequent application of this section to the person
within the last five years.
(3) For the purpose of subsection (2), this section
applies where a person is served with a notice of
assessment under section 77.
(4) For the purpose of this section, an attempt to
collect tax includes an amount shown as tax on an
invoice for a supply of goods or services whether or
not
(a)
the invoice is a tax invoice issued in accordance
with the Value Added Tax Act, 2013 (Act 870);
(b)
an amount of tax is chargeable on the supply; or
(c)
the person to whom the invoice is issued is a
taxable person.
Penalty for aiding and abetting
76. (1) A person who knowingly or without reasonable
excuse aids, abets, counsels or induces another
person to. commit an offence under section 78 to 84
is liable to pay a penalty of one hundred percent of
the tax shortfall.
(2) In this section, "tax shortfall" means the
underpayment of tax that, in the opinion of the
Commissioner-General, may have resulted if the
offence had been committed and had gone undetected.
Assessment of Interest and Penalties
Assessment of interest and penalties
77. (l) The Commissioner-General shall assess the
interest and penalties for which a person is liable
under this Act.
(2) Liability for interest and penalties with
respect to a particular failure or statement is
calculated separately for each section of this Act.
(3) The imposition of interest and penalties under
this Act is in addition to any other tax imposed by
a tax law and does not relieve a person from
liability to criminal proceedings.
(4) Despite subsection (2), where a person incurs an
interest or a penalty both under this Act and
another tax law, the Commissioner- General shall
assess the person under one tax law only, that the
Commissioner-General chooses.
(5) Where an assessment is made under this section,
the Commissioner -General shall serve a written
notice of assessment on the person stating
(a)
the name of the person and the Taxpayer
Identification Number of that person;
(b)
the assessment of the interest or penalties by the
Commissioner-General;
(c)
the manner in which the interest or penalty is
calculated;
(d)
the reason why the Commissioner-General has made the
assessment;
(e)
the date by which the interest or penalty is
required to be
\paid; and
(f)
the time, place and manner of objecting to the
assessment.
(6) An assessment made under this section is an
original assessment.
(7) A notice of assessment under subsection (5) may
be incorporated with another notice of assessment
under a tax law.
Offences
Offence of failing to comply with a tax law
78. Except as otherwise provided in this Act, a
person who fails to comply with a provision of a tax
law commits an offence and where a specific penalty
is not provided, is liable on summary conviction to
a fine of not less than one thousand penalty units
and not more than two thousand and five hundred
penalty units or to a term of imprisonment of not
less than two years and not more than five years or
to both.
Offence of failing to register
79. (1) A person who is required to register under a
tax law and who fails to register as required under
that tax law commits an offence and is liable on
summary conviction to
(a)
pay the tax payable under that tax law; and
(b)
pay a fine of not more than two times the amount of
tax payable or an amount of one thousand penalty
units, which- ever is higher.
(2) In addition the penalty specified in subsection
(1), the Commissioner-General may authorise the
forfeiture of any goods or materials used by the
person in carrying on the business of that person.
Offence of failing to pay tax
80. A person who fails to pay tax by the date on
which the tax is payable commits an offence and is
liable on summary conviction
(a)
where the failure relates to an amount exceeding two
thousand currency points, to a fine of not less than
two hundred penalty units and not more than one
thousand
penalty units or to a term of imprisonment of not
less than three months and not more than one year or
to both; and
(b)
in any other case. to a fine of not less than fifty
penalty units and not more than two hundred penalty
units or .o a term of imprisonment of not less than
one month and not
more than three months or to both.
Offence of making false or misleading statements
81. (1) A person who
(a)
makes a statement that is false or misleading in a
material particular to a tax officer; or
(b)
omits from a statement made to a tax officer, 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, if the inaccuracy of the statement were
undetected, it may have resulted in an underpayment
of tax in an amount exceeding fifty currency points,
to a fine of not less than twenty-five penalty units
and not more than two hundred penalty units, or to a
term of imprisonment of not less than three months
and not more than two years or to both; or
(d)
in any other case, to a fine of not less than five
penalty units and not more than fifty penalty units
or to a term of imprisonment of not less than one
month and not more than three months or to both.
(2) Section 74(3), (4), (5) and (6) apply for the
purpose of deter- mining what constitutes a
statement made to a tax officer and when the
statement is false or misleading.
Offence of impeding tax administration
82. (1) A person who impedes or attempts to impede
the administration of a tax law commits an offence
and is liable on conviction
(a)
where the offence involves fraud or undue force, to
a fine of twice the amount sought to be evaded or
recovered or two hundred penalty units, whichever is
greater, or to a term of imprisonment of not less
than two years and not more than four years or to
both; and
(b)
in any other case, to a fine of not less than ten
penalty units and not more than two hundred penalty
units or to a term of imprisonment of not less than
three months and not more than two years or to both.
(2) In addition to the punishment specified in
subsection (1), any goods used by the offender in
the commission of the offence shall be forfeited.
(3) In this section, "impeding administration of a
tax law" includes,
(a)
with respect to a tax officer performing duties
under a tax law or a person assisting a tax officer,
.(i) interfering with or obstructing the tax officer
or the assistant of the tax officer or attempting to
do so;
(ii) interfering with an asset used by the tax
officer or an assistant of the tax officer or
attempting to do so; or
(iii) refusing to grant access to premises, a place,
document or other asset as required by section 33;
(b)
failing to comply with a notice under section 35 or
answer truthfully when being interrogated under
section 88;
(c)
falsely making or altering a document or a mark on a
document with the intention that a person will
wrongly believe or act on the basis that the
document is correctly required by or issued under a
tax law or correctly stamped;
(d)
with the intention of evading an obligation under a
tax law, knowingly dealing with or using a document
or asset
(i) that is false or misleading in a material
particular;
(ii) in a way that makes the document or asset false
or misleading in a material particular; or
(iii) so that the document or asset contains or
produces information that is false or misleading in
a material particular;
(e)
contravening section 18;
(f)
evading tax or knowingly being concerned in or
taking steps with a view to evading tax, including
(i) accepting goods knowing or believing that tax
due with respect to the goods has not and will not
be paid or will be falsely reclaimed;
(ii) dealing with an asset charged under section 52
so as to prevent seizure;
(iii) dealing with an asset liable to seizure under
a tax law so as to prevent seizure; or
(iv) dealing with an adhesive stamp that has been
previously used;
(g)
recovering tax, including recovering or rescuing an
asset seized under section 33, 53, 57 or 88 of this
Act or another tax law;
(h)
interfering with any lock, seal, mark, fastening or
other security used to distrain an asset under
section 57 or 88;
(t)
disguising or hiding, or disguising , warning,
hiding or rescuing another person with the intent
that a liability or obligation under a tax law is
evaded; and
(j)
committing an offence under a tax law where the
person has already been convicted of an offence
under a tax law or had an offence compounded under
section 86.
Offences by authorised and unauthorised persons
83.
(1) A person authorised by the Commissioner-General
and acting in the performance of duties under a tax
law commits an offence if that person
(a)
directly or indirectly asks for or receives
(i) a payment or reward whether pecuniary or other-
wise that the person is not lawfully entitled to
recerve; or
(ii) a promise or security for a payment or reward;
or
(b)
agrees to, permits, conceals, connives at or
acquiesces in an
act or thing whereby the Government is or may be
defrauded
or which is contrary to this Act.
(2) A person, not being authorised under this Act or
under a tax law, commits an offence if that person
(a)
collects or attempts to collect an amount of tax
payable under a tax law or an amount that the person
describes as a tax; or
(b)
otherwise makes representations with the intent that
another person will believe that person to be a tax
officer and act on that belief.
(3) A person who commits an offence under subsection
(1) or (2) is liable on summary conviction to a fine
of not less than fifty penalty units and not more
than two hundred and fifty penalty units or to a
term of imprisonment of not less than three months
and not more than two years or to both.
Offences by entities
84.
(1) Subject to subsection (2), where an entity
commits an offence under a tax law, a person who is
a manager of the entity at that time is treated as
also having committed the same offence.
(2) Subsection (1) does not apply to a manager who
has exercised the degree of care, diligence, and
skill that a reasonably prudent person in the
position of the manager would have exercised in
preventing the commission of the offence.
(3) Where a person who is a manager of an entity
commits an offence under a tax law while acting in
the capacity as a manager, the entity is treated as
also committing the same offence.
Causing harm to a tax officer
85.
A person who shoots at, maims, wounds or causes harm
to a tax officer acting in the execution of the duty
of the tax officer commits an offence and is liable
on conviction to a term of imprisonment of not more
than twenty years.
Compounding offences
86.
(1) Where a person commits an offence under a tax
law, the Com- missioner-General may compound the
offence and order the person to pay a sum of money
specified by the Commissioner-General and deliver up
any asset liable for forfeiture in respect of the
offence.
(2) The Commissioner-General shall not compound an
offence
(a)
in respect of
(i) the conduct of a tax officer or public official
acting in an official capacity; or
(ii) a conduct of the kind referred to in section 83
or 85; or
(b)
after the commencement of proceedings with respect
to an offence unless he person admits the offence in
writing and accepts the proposed terms of compound.
(3) The Commissioner-General shall make the order
mentioned in subsection (1) in writing and specify
in that order
(a)
the offence committed;
(b)
the fact that the person who committed the offence
admits guilt;
(c)
the sum of money to be paid which should not exceed
the maximum fine for the offence;
(d)
any asset forfeited; and
(e)
the date for payment of the money and delivery of
the asset.
(4) An order of the Commissioner-General under
subsection (1) is final and not subject to an
appeal.
(5) The Commissioner-General shall serve the order
on the person who committed the offence.
(6) The order shall be enforced in the same manner
as an order of the High Court for the payment of the
amount and delivery of any asset stated in the
order.
(7) Where the Commissioner-General compounds an
offence under this section, the person concerned is
not liable to any other penalty under this Act or
prosecution with respect to that offence.
Proceedings
Multiple proceedings
87.
(1) A proceeding to recover tax under one provision
of a tax law does not restrict simultaneous or
separate proceedings to recover the same tax under a
different provision of that law or a provision of
another tax law.
(2) A prosecution of a person for an offence under
one provision of a tax law does not restrict the
simultaneous or separate prosecution of the same
person for another offence under a different
provision of that law or a provision of another tax
law.
(3) Subject to any provision in a tax law, a person
may be convicted or fined under more than one
offence provision with respect to the same course of
conduct or omission but not the same part of the
course of conduct or omission.
(4) Where two or more offence provisions apply to
the same part of a course of conduct or omission of
a person, the Court has the choice of which
provision to apply.
Power of search, seizure or arrest
88.
(1) Where a tax officer has reason to believe that a
person
(a)
has committed an offence under a tax law,
(b)
will abscond before the person is prosecuted for an
offence under a tax law, or
(c)
will destroy, tamper with or otherwise dispose of
evidence of an offence under a tax law,
the tax officer shall apply to a magistrate for an
order authorising that tax officer to take any of
the actions set out in subsection (2).
(2) Wher,e the magistrate is satisfied that there is
a serious risk to the collection of tax or the
administration of justice, the magistrate may make
an order authorising the tax officer, with the
assistance of the police, to
(a)
enter premises or a place and distrain assets that
may reasonably provide evidence that an offence has
been committed under a tax law;
(b)
distrain and search a premises, place, vehicle or
other asset on or in which the tax officer believes
on reasonable grounds that there is evidence of an
offence under a tax law;
(c)
interrogate and search or cause to be interrogated
and searched a person who the tax officer believes
on reason- able grounds has committed an offence
under a tax law or is in possession of assets
mentioned in paragraph (a);
(d)
arrest a person who the tax officer believes on
reasonable grounds has committed an offence under a
tax law; or
(e)
use reasonable force for the purpose of the
preceding para- graphs including by way of breaking
into a premises, place or asset that may reasonably
contain evidence referred to in paragraph (a).
(3) Where an asset is distrained under subsection
(2), the tax officer shall
(a)
serve a written notice on the possessor of the asset
and, where there is more than one possessor, service
on a single possessor is sufficient; or
(b)
leave the notice at the premises or place where the
restraining takes place, if the possessor of the
asset is not available.
(4) The notice served under subsection (3) shall
(a)
identify and list the assets distrained;
(b)
state that the assets have been distrained under
this section;
(c)
state the reason for the distraint; and
(d)
set out the terms for release, including terms
relating to security required and disposal of the
seized assets.
(5) A tax officer shall, immediately send a person
arrested under this section to the nearest police
office.
(6) A person may be searched under paragraph
(2)(c) only by a person of the same sex.
(7) A tax officer may exercise any power granted by
a magistrate under this section in conjunction with
other powers of the tax officer, including those
granted by sections 33 and 35.
Venue for conducting tax proceedings
89.
(1) A proceeding for recovery of tax shall be
commenced, heard and disposed of by the court
nearest to or within the judicial district
(a)
where the person from whom recovery is sought is
usually resident; or
(b)
where the office of the Authority that has primary
responsibility for the tax affairs of that' person
is situated.
(2) The Commissioner-General has the choice between
possible venues under subsection (1).
(3) A proceeding with respect to an offence under a
tax law shall be commenced, heard and disposed of at
the court with competent jurisdiction nearest to or
within the judicial district where the
(a)
person who is charged with the offence is usually
resident;
(b)
office of the Authority having primary
responsibility for the tax affairs of that person is
situated;
(c)
person is held in custody pending prosecution; or
(d)
offence took place.
(4) The prosecutor has the choice between possible
venues under subsection (3).
Appearance in court
90.
Despite any law to the contrary, a tax officer duly
authorised in writing by theCommissioner-General may
appear on behalf of the Commissioner-General in
court proceedings to which the Commissioner- General
is a party.
Admissibility of documents
91.
(1) The following are admissible in proceedings on
appeal under Part Five or in recovery of tax under a
tax law without calling the person who prepared or
signed it
(a)
a document that has been seized or obtained by a tax
officer acting in the performance of duties under a
tax law, relating to the tax affairs of a person;
(b)
a statement relating to the tax affairs of a person
that is made to a tax officer acting in the
performance of duties under a tax law; and
(c)
a copy of, translation of or extract from a document
or statement referred to in paragraph (a) or
(b).
(2) The admissibility of a document under subsection
(1) is not affected by the fact that the person was
induced to provide the document, copy or extract or
made the statement by reason that the person was led
to believe that
(a)
the Commissioner-General might, on any terms, settle
the institution or prosecution of proceedings; or
(b).
the decision of the Commissioner-General as to
whether to settle the institution or prosecution of
proceedings would be influenced by the person
confessing to being guilty of an offence and
providing full facilities for investigation.
(3) This section applies despite any law to the
contrary but does not limit the admissibility of a
document, copy, extract or statement under any other
law.
Burden of proof
92. (1) Subject to subsection (2), in proceedings on
appeal under section 41 to 45 or for the recovery of
tax under a tax law, the burden of proof is on the
taxpayer or person making an objection to show
compliance with the provisions of the tax law.
(2) With respect to the imposition of a penalty,
including in proceedings on appeal under or for the
recovery of a penalty, the burden of proof is on the
Commissioner-General to show non-compliance with the
provisions of the tax law.
(3) Section 41(4) provides for conclusive evidence
that a tax decision has been made and is correct.
(4) The following matters are evidence in
proceedings referred to in subsection (1) or with
respect to an offence under a tax law:
(a)
matters certified in writing by the
Commissioner-General acting in an official capacity,
including
(i) the name and address of a person and the amount
and type of tax payable by the person;
(ii) a statement that a person has failed to file a
document, register or otherwise comply with an
obligation under a tax law;
(iii) a statement that a person is a tax officer and
is authorised for the performance of specified
activities under a tax law and that specified
activities of the tax officer were performed in the
pursuit of that authority;
(iv) a statement that a printed document is an
accurate copy or translation of another document,
including an electronic document or a document in
code or in a foreign language; and
(v) a statement as to the value of goods;
(b)
matters certified in writing by other Ghanaian
public officers acting in an official capacity;
(c)
matters certified in writing by a public officer of
a foreign government acting in an official capacity;
and
(d)
proof of the content of ten percent of goods with
respect to evidence of the remaining contents of
goods seized under a tax law.
(5) This section applies to proceedings to enforce
an obligation with respect to a security in favour
of the Commissioner-General.
Tax decisions unaffected
93. A tax decision is not stayed or otherwise
affected
(a)
by the institution of proceedings
(i) for the recovery of tax; or
(ii) with respect to an offence under a tax law; or
(b)
by reason that the Commissioner-General compounds an
offence.
Security not a defence
94. The provision of security by a person for
compliance with a provision of a tax law is not a
defence in proceedings for the recovery of tax or
with respect to an offence under that tax law or
another tax law.
Publication of names of offenders
95. (1) The Commissioner-General may publish in the
Gazette, on the website of the Authority or
by any other national media a list of persons who
have
(a)
failed to file tax returns;
(b)
failed to pay tax on time;
(c)
been convicted of an offence under a tax law, but
only if the
time for appeal has expired; or
(d)
had an offence under a tax law compounded under
section 86.
(2) The Commissioner-General may, for the purpose of
subsection (1), specify
(a)
the name and address of a person
(b)
the offending conduct;
(c)
the period during which the conduct occurred;
(d)
the amount of tax involved; and
(e)
particulars of any fine or sentence imposed.
Exemption from transaction taxes
96. (1) In proceedings under this Act, the
Commissioner-General is exempt from transaction
taxes, including stamp duty.
(2) Without limiting subsection (1), the following
transactions are exempt from transaction taxes:
(a)
accepting security for an obligation under a tax
law;
(b)
creating a charge under section 52;
(c)
selling assets under section 54; and
(d)
releasing a charge under section 55.
OTHER PROVISIONS
Tax Laws
Relationship between tax laws
97.(1)
This Act shall be read as one with each of the other
tax laws.
(2) To the extent necessary to give effect to the
purpose of this Act, an undefined term in this Act
has a meaning consistent with the usage of that term
in other tax laws.
(3) Subject to this Act, the powers of the
Commissioner-General specified in this Act may be
exercised with respect to any tax law and are in
addition to specific powers granted under other tax
laws.
(4) While acting under a provision of this Act, a
tax officer may
(a)
act for the purpose of more than one tax law at the
same time; and
(b)
commence acting under a more specific provision of
another tax law.
(5) Except as otherwise provided in a tax law, while
acting under a provision of another tax law, a tax
officer may act only for the purpose of that law.
(6) The Commissioner-General may, for the purpose of
any tax law, use information obtained by a tax
officer in the proper execution of duties under a
particular tax law.
(7) Section 41 to 45 applies to tax decisions under
other tax laws.
(8) For the purpose of applying the provisions of
multiple tax laws,
(a)
section 77 applies where interest and penalties are
payable under multiple provisions of tax laws; and
(b)
section 87 applies where multiple provisions of tax
laws apply with respect to proceedings for recovery
of tax or with respect to an offence.
International arrangements
98.
(1) To the extent that the terms of an international
arrangement to which the Republic is a party are
inconsistent with the provisions of a tax law, the
terms of the international arrangement shall prevail
over the provisions of the tax law.
(2) Subsection (1) applies
(a)
only to an international arrangement ratified by
Parliament under Article 75 of the Constitution; and
(b)
subject to subsection (5) and section 99.
(3) Subsection (4) applies where the
Commissioner-General receives a request pursuant to
an international arrangement from the competent
authority of another country for the collection in
the country of an amount payable by a tax debtor
under the tax laws of that other country.
(4) For the purpose of subsection (3), the
Commissioner- General may, by service of a notice in
writing, require the tax debtor to pay the amount to
the Commissioner-General by the date specified in
the notice for transmission to the competent
authority.
(5) Where an international arrangement requires
Ghana to exempt an amount from tax or subject an
amount to reduced taxation, the exemption from or
reduction of tax is not available to an entity that
(a)
for the purpose of the arrangement, is a resident of
the other contracting State; and
(b)
fifty percent or more of whose underlying ownership
is held by persons who, for the purpose of the
arrangement, are not residents of the other
contracting State or Ghana.
(6) For the purpose of this section, "underlying
ownership"
(a)
in relation to an entity, means membership interest
owned in the entity, directly or indirectly through
one or more interposed entities, by individuals or
by entities in which
no person has a membership interest; 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.
(7) For the purpose of this section, "competent
authority of another country" means the person
designated by that country as the competent
authority for tax purposes.
Tax avoidance arrangements
99. (1) Despite any provision in a tax law, where
the Commissioner- General is of the opinion that a
person might otherwise secure a tax benefit under a
tax avoidance arrangement, the Commissioner-General
may adjust the tax liability of that person in a way
that the Commissioner-General considers appropriate
to counteract the tax benefit.
(2) The Commissioner-General may, pursuant to
subsection (1) serve the person with a notice
specifying
(a)
the tax benefit;
(b)
the arrangement; and
(c)
the adjustment made by the Commissioner-General.
(3) A notice under subsection (2) may be
incorporated in a notice of assessment.
(4) For the purpose of this section "tax avoidance
arrangement"
means, subject to subsection (5)
(a)
an arrangement that has as a main purpose the
provision of a tax benefit for a person; or
(b)
an arrangement where the main benefit that might be
expected to accrue from the arrangement is a tax
benefit for a person; and
"tax benefit", in relation to a person, means
(a)
avoiding, reducing or postponing a tax liability of
the person;
(b)
increasing a claim of the person for a refund of
tax; or
(c)
preventing or obstructing collection of tax from the
person.
(5) An arrangement is a "tax avoidance arrangement"
only if it involves a misuse or abuse of a tax law
provision having regard to the purpose of the
provision and the wider purposes of the law in which
the provision is situated.
Practice notes
100.
(1) To achieve consistency in the administration of
tax laws and to provide guidance to persons affected
by the tax laws, including tax officers, the
Commissioner-General may issue practice notes
setting out the interpretation placed on provisions
of a tax law by the Commissioner- General.
(2) A practice note may pertain to a single tax law
or multiple tax laws and the Commissioner-General
may issue multiple practice notes with respect to
the same tax law.
(3) A practice note is binding on the
Commissioner-General until revoked.
(4) A practice note is not binding on persons
affected by a tax law.
Issue of practice notes
101.
(1) The Commissioner-General may issue a practice
note by publishing the notice of the practice note
in the Gazette, on the website of the
Authority and in at least two daily newspapers of
national circulation.
(2) A practice note shall have a number and subject
heading by which the practice note can be
identified.
(3) A practice note applies from the date specified
in the notice and if no date is specified, from the
date of publication in the Gazette.
(4) The Commissioner-General shall make practice
notes publicly available.
Amendment or revocation of practice notes
102.
(1) The Commissioner-General may amend or revoke a
practice note, in whole or in part, by publishing a
notice of the amendment or revocation in the
Gazette, on the website of the Authority and in
at least two daily newspapers of-national
circulation.
(2) The subsequent enactment of legislation or issue
of a practice note that is inconsistent with an
existing practice note revokes the existing practice
note to the 'exrent of the inconsistency.
(3) The amendment or revocation of a practice note,
in whole or in part, has effect
(a)
where subsection (1) applies, from the date
specified in the notice of amendment or revocation
and if a date is not specified, from the date the
notice of the amendment or
revocation is published in the Gazette; or
(b)
where subsection (2) applies, from the date the
inconsistent legislation or practice note applies.
(4) The amended or revoked part of a practice note
(a)
continues to apply to arrangements commenced before
the amendment or revocation; and
(b)
does not apply to arrangements commenced after the
amendment or revocation.
Private or class rulings
103. (1) Subject to section 104, the
Commissioner-General may, on an application in
writing by a person, issue to that person a private
ruling or a class ruling setting out the position of
the Commissioner -General regarding the application
of a tax law with respect to an arrangement proposed
or entered into
(a)
in the case of a private ruling, by the person; or
(b)
in the case of a class ruling, by persons in a
specified class.
(2) A private or class ruling may apply to multiple
arrangements and multiple tax laws.
(3) Subject to subsection (4), a private or class
ruling is binding on the Commissioner-General with
respect to the application of a tax law mentioned in
the ruling to an arrangement of
(a)
the applicant, in the case of a private ruling; and
(b)
a person in the specified class, in the case of a
class ruling.
(4) A private or class ruling under subsection (1)
is binding only
(a)
if prior to the issuance of the ruling
(i) the applicant makes a full and true disclosure
of all aspects of the arrangement relevant to the
ruling to the Commissioner-General; and
(ii) the arrangement proceeds in all material
respects as described in the application for the
ruling;
(b)
if the ruling is headed "private ruling" or "class
ruling" as
the case requires; and
(c)
for the period specified in the ruling.
(5) A private or class ruling does not bind
(a)
the applicant or any other person; or
(b)
the Commissioner-General with respect to any person
other than,
(i) in the case of a private ruling, the applicant
or,
(ii) in the case of a class ruling, persons in the
specified class.
(6) A private or class ruling is not subject to
challenge but a person may challenge a tax decision
made with respect to an arrangement which is the
subject of a private or class ruling.
(7) For the purpose of this section, a class of
persons includes
(a)
persons holding a particular class of membership
interest in an entity; and
(b)
persons that, in the opinion of the
Commissioner-General, may be identified as commonly
situated with respect to the application of
particular provisions of a tax law.
(8) The Commissioner-General may charge a fee for a
private or class ruling issued to an applicant.
(9) A fee for a private or class ruling shall be
based on the cost structure of similar legal or tax
advisors and shall be paid before the ruling is
communicated to the applicant.
Refusing application for private or
class ruling
104.
(1) The Commissioner-General may refuse an
application for a
private or class ruling if
(a)
in the case of a private ruling
(i) the arrangement has already been the subject of
a tax decision; or
(ii) the Commissioner-General has commenced an
investigation of the tax affairs of the applicant in
respect of the arrangement or, before the
application, has notified the applicant in writing
of an intention to do so;
(b)
the Commissioner-General is of the opinion that an
existing practice note adequately covers the
arrangement;
(c)
the application is frivolous or vexatious;
(d)
the arrangement has not been carried out and there
are reasonable grounds to believe that the
arrangement will not be carried out; .
(e)
the applicant has not provided the
Commissioner-General with sufficient information to
make a ruling;
(f)
the applicant for the ruling has not paid the fee
for the ruling; or
(g)
in the opinion of the Commissioner -General, it
would be unreasonable to comply with the application
having regard to the resources needed to comply and
any other matters the Commissioner-General considers
relevant.
(2) Where the Commissioner-General refuses an
application for a private or class ruling, the
Commissioner-General shall, within thirty days of
the decision, serve the applicant with a written
notice of the refusal stating the reason for the
refusal.
Issue of private or class ruling
105.
(1) For the purpose of this Act, a private or class
ruling is issued where
(a)
in the case of a private ruling, the
Commissioner-General serves a written notice of the
ruling on the applicant; and
(b)
in the case of a class ruling, the
Commissioner-General serves a written notice of the
ruling on the applicant and makes the ruling
publicly available.
(2) The Commissioner-General may base a private or
class ruling on assumptions about a future event or
other matters considered appropriate.
(3) The Commissioner-General shall, in issuing a
private or class ruling,
(a)
set out the matters ruled on, identifying the tax
laws, periods and arrangements to which the ruling
applies as well as any assumptions that affect the
ruling;
(b)
in the case of a private ruling, identify the
applicant and the tax identification number of the
applicant; and
(c)
in the case of a class ruling, refrain from
revealing the tax identification number of a person
or the identity of class members or any other person
referred to in the ruling except with the consent of
the applicant.
Amendment or revocation of private or class ruling
106.
(1) The Commissioner-General may for reasonable
cause, amend or revoke a ruling, in whole or in
part, by written notice
(a)
served on the applicant in the case of a private
ruling; and
(b)
served on the applicant and made publicly available
in the case of a class ruling.
(2) An amendment under subsection (1) shall accord
with the requirements of section 105 (3).
(3) The subsequent enactment of legislation that is
inconsistent with a private or class ruling revokes
the private or class ruling to the extent of the
inconsistency.
(4) The amendment or revocation of a private or
class ruling, in whole or in part, has effect
(a)
from the date specified in the notice of amendment
or revocation issued under subsection (1); or
(b)
from the date of the legislation in the case of
legislation referred to in subsection (3).
(5) The amended or revoked part of a private or
class ruling
(a)
does not apply to arrangements commenced before the
amendment or revocation; and
(b)
applies to arrangements commenced after the
amendment or revocation.
Miscellaneous Provisions
Regulations
107.
(1) The Minister may, by legislative instrument,
make Regulations
(a)
for the effective implementation of a tax law
referred to under section 108;
(b)
for matters authorised to be made or prescribed by
Regulations made under a tax law;
(c)
to amend a provision in a Schedule of a tax law or a
monetary amount set out in a tax law;
(d)
for the better carrying into effect and interpreting
the principles, purposes and provisions of a tax
law;
(e)
requiring persons or a class of persons to provide
information as may be prescribed, whether on an
isolated or periodic basis; and
(f)
applying special schemes for payment and recovery of
tax from particular persons or classes of persons.
(2) Regulations made under subsection (1) may
pertain to a single tax law or multiple tax laws.
(3) A person who fails to comply with a Regulation
made under subsection (1) contravenes this Act and
section 70 to 95 shall apply to that person.
(4) Where
(a)
a law is only partly administered by the Authority,
and
(b)
a minister, authority or body other than the
Minister is
empowered to make Regulations under that law,
Regulations with respect to the administration by
the Authority, may only be made by the Minister and
in consultation with the other minister, authority
or body.
Interpretation
108.
In this Act, unless the context otherwise requires
"adjusted assessment" means an assessment adjusted
under section 39;
"assessment" means a determination of the amount of
tax liability made under a tax law, whether by the
Commissioner-General or by way of self-assessment,
and includes
the matters identified in the Second Schedule;
"arrangement" means
(a)
an action, agreement, course of conduct, dealing,
promise, transaction, understanding or undertaking,
whether express or implied, whether or not enforce-
able by legal proceedings and whether unilateral or
involving more than one person; or
(b)
a part of an item described in paragraph (a);
"authorised economic operator" means an
internationally certified person whose role in the
international supply chain is secure and is in
compliance with customs controls and
other procedures;
"Authority" means the Ghana Revenue Authority
established under the Ghana Revenue Authority Act,
2009 (Act 791);
"Board" means the governing body of the Ghana
Revenue Authority;
"business" includes a trade, profession or vocation,
but does not include employment;
"Commissioner-General" means the
Commissioner-General appointed under section 13 of
the Ghana Revenue Authority Act, 2009 (Act 791);
"cost of charge and sale" with respect to charged
assets means expenditure incurred or to be incurred
by the Commissioner-General or an authorised agent
(a)
under section 52 or 55 with respect to creating or
releasing the charge; or
(b)
under section 53 or 54 with respect to taking
possession of, holding or' selling the charged
assets;
"Court" means High Court;
"conveyance" includes a ship, aircraft or vehicle;
"currency point" is equivalent to one Cedi;
"document" means an account, assessment, book,
certificate, claim, declaration, note, notice,
order, record, return, ruling, or other statement in
writing, whether in electronic or other form;
"entity" means a company or other corporation,
partnership, trust, government agency or, to the
extent recognised as a person or taxable person by
another tax law, any other
entity but excludes an individual;
"file", in relation to a document, includes lodging
or furnishing the document including by electronic
means;
"Gazette"
means the Government Gazette;
"Government" means Government of Ghana;
"international arrangement" means a treaty or
agreement between the Government of Ghana and a
foreign government providing for
(a)
relief of international double taxation and the
prevention of fiscal evasion;
(b)
reciprocal assistance for the administration or
enforcement of tax laws; or
(c)
reciprocal concessions in respect of goods grown,
produced or manufactured in or imported from a
contracting State;
"manager", in relation to an entity means a
councillor, director, manager, member, officer or
other person who participates or may participate,
whether alone or jointly with other persons, in
making senior management decisions on behalf of the
entity and includes
(a)
a partner of a partnership and a trustee of a trust;
(b)
a person treated as a manager of an entity by
another tax law; and
(c)
a person in accordance with whose directions and
instructions the entity or a person described in the
rest of this definition is required or accustomed to
act;
"membership interest in an entity" means a right,
whether of a legal or equitable nature, including a
contingent right, to participate in income or
capital of the entity and includes the interest of a
partner in a partnership, the interest of a
beneficiary in a trust and shares in a corporation;
"Minister" means the Minister responsible for
Finance;
"original assessment" means an assessment that is
not an adjusted assessment;
"person" means an individual or an entity;
"possessor" of an asset includes
(a)
in relation to premises or a place, the owner,
manager or any other person on the premises or
place; and
(b)
in relation to any other asset, including a
document, \a person from whom the asset is seized or
taken;
"pre-emptive assessment" means an assessment raised
by the Commissioner General under circumstances
specified under Section 28(3);
"professional body" means a professional body
registered under the Professional Bodies
Registration Act, 1973 (NRCD 143);
"publicly available", in relation to a note, ruling
or other notice issued by the Commissioner-General,
means making the note, ruling or notice available to
the public at offices of the Ghana Revenue Authority
and at such other locations or by such other medium
as the Commissioner-General may
determine;
"reduction", with respect to tax, means an
exemption, mitigation, deferment or remission that
is in the nature of a concession or tax expenditure;
"restrain" includes detaining, locking up, marking,
sealing, seizing, stopping, taking away or otherwise
securing;
"security" for an obligation under a tax law is
interpreted in light of section 8 and includes a
charge created under section 52;
"self-assessment" means an original. assessment
under a tax law that is occasioned by a person
filing a tax return rather than by the
Commissioner-General making an assessment and
includes the matters identified in the Second
Schedule;
"statutory rate" means the Bank of Ghana monetary
policy rate;
"tax affairs", in relation to a person, includes all
manners in which any provision of a tax law may
apply to that person or the activities, assets or
personal circumstances of that
person;
"tax law" means
(a)
to the extent that it is to be administered by the
Authority, a law listed in the First Schedule to the
Ghana Revenue Authority Act, 2009 (Act 791); and
(b)
an international arrangement.
"tax officer" means an officer of the Authority;
"tax return" includes the matters identified in the
Second Schedule;
"trust" means an arrangement under which a trustee
holds assets but excludes a partnership and a
company;
"trustee"
(a)
means an individual or body corporate holding assets
in a fiduciary capacity for the benefit of
identifiable . persons or for some object permitted
by law and whether or not
(i) the assets are held alone or jointly with other
individuals or bodies corporate;
or
(ii) the individual or body corporate is appointed
or constituted trustee by personal acts, by will, by
order or declaration of a court or by other
operation of law; and
(b)
includes
(i) an executor, administrator, tutor or curator;
(ii) a liquidator, receiver, trustee in bankruptcy
or judicial manager;
(iii) a person having the administration or control
of assets subject to a usufruct,
fideicommissum or other limited interest;
(iv) a person who manages the assets of an
incapacitated individual; and
(v) a person who manages assets under a private
foundation or other similar
arrangement;
"withholding agent" means a person obliged to
withhold tax from a payment; and
"withholding tax" means income tax that a
withholding agent is required to withhold from a
payment under the Income Tax Act, 2015 (Act 896).
Consequential amendments and repeals
109. (1) The Provisions of the laws set out in the
Third Schedule referred to as the "prior law" are
repealed, enacted, replaced or amended as provided
in that Schedule to conform to the introduction of
this Act.
(2) Regulations made under the prior law and in
force at the commencement of this Act continue in
force as if they were made under this Act
(a)
until the Regulations are amended or revoked by
Regulations made under this Act; and
(b)
except to the extent that they are inconsistent with
this Act.
(3) In this section, "Regulations" includes rules,
rulings, orders and notices.
Transitional provisions
110.
(1) Subject to this section, the prior law continues
to apply for periods and events occurring before the
date' on which this Act comes into operation.
(2) All appointments made under the prior law and
subsisting at the date this Act comes into effect
are deemed to be appointments made under this Act.
(3) An International arrangement made by the
Government of Ghana that is effective under the
prior law at the time this Act comes into effect
continues to have effect under this Act.
(4) Forms and other documents used in relation to
the prior law may continue to be used under this Act
and references in those forms and documents to
provisions of and expressions appropriate to the
prior law are taken to refer to the corresponding
provisions and expressions of this Act.
(5) An appeal, prosecution or other proceeding
commenced before the commencement of this Act shall
continue and be disposed of as if this Act had not
come into force.
(6) A tax liability that arose before the
commencement of this Act may be recovered by fresh
proceedings under this Act, but without prejudice to
any action already taken for the recovery of the
tax.
(7) A reference in this Act to "this Act" or to "a
provision of this Act" includes, where the context
requires, a reference to the prior law or to a
corresponding provision of the prior law,
respectively.
Commencement
111.
This Act shall come into force on the 1st day of
January, 2017.
FIRST SCHEDULE
(Sections 11 and 108)
Transactions for which Taxpayer Identification
Number or Tax Clearance Certificate is required
PART I
The Taxpayer Identification Number System
1. The Taxpayer Identification Number System applies
to the following:
(1) the Ghana Revenue Authority;
(2) the Controller and Accountant General's
Department;
(3) the Registrar General's Department;
(4) the Registrar of Co-operatives;
(5) the Lands Commission;
(6) the Immigration Service
(7) the Passport Office
(8) the Driver and Vehicle Licensing Authority
(9) the Courts;
(10) Ministries, Departments and Agencies;
(11) Metropolitan, Municipal and District
Assemblies;
(12) Government, Sub-divisions of Government and
Public Institutions not listed above;
(13) Persons required to withhold tax under the
Income Tax Act, 2015 (Act 896);
(14) Banks, Insurance Companies and other Financial
Institutions;
(15) Manufacturing companies; and
(16) Any other institution or person which the
Minister may by Regulations prescribe.
Use of Taxpayer Identification Number for specified
transactions
2. A person shall not be permitted
(1) to clear any goods from any port or factory,
(2) to register any title to land, interest in land
or any document affecting land,
(3) to obtain any Tax Clearance Certificate from the
Ghana Revenue Authority,
(4) to obtain a certificate to commence business or
a business permit issued by the Registrar-General or
a Local authority,
(5) to register a co-operative,
(6) to receive payment from the Controller and
Accountant- General or a Local Government Authority
in respect of a contract for the supply of any
goods, works or provision of any services,
(7) to receive a payment subject to withholding
under the Income Tax Act, 2015, (Act 896)
(8) to file a case with the Courts, or
(9) conduct any official business with the
institutions and persons specified in paragraph 1
unless that person quotes the Taxpayer
Identification Number issued in respect of that
person under the System.
Part ll
Tax Clearance Certificate required
INSTITUTION PURPOSE
OF TRANSACTION
|
|
|
|
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Ghana Revenue Authority |
Importation of goods in commercial
|
|
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quantities; customs clearing and
|
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forwarding, application for licence
|
|
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under the Customs Act, 2015, |
|
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(Act 891) |
application for Licence |
|
|
under the Excise Act 2014, (Act 878)
|
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Lands Commission |
Title registrations and transactions
|
|
Government Ministries, Government -
|
Contracts, including contracts of
|
|
Agencies, Local Government |
supply of goods, works and services
|
|
Authorities and other bodies in |
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which public funds are vested |
Submission of tenders for supply of
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|
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goods, works and services |
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Professional bodies |
Renewal of practising licence |
| |
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SECOND SCHEDULE
(section 108)
Tax Returns and Assessments
Tax Returns
1. The tax returns for the purpose of this Act
are as follows:
(a)
in relation to income tax
(i) a return of income filed under section 124 of
the Income Tax Act, 2015 (Act 896) and
(ii) a statement of tax withheld filed under section
117 of Income Tax Act, 2015 (Act 896);
(b)
in relation to petroleum income tax
(i) a return filed under section 73(1) of the Income
Tax Act, 2015 (Act 896);
(ii) a fresh return filed under section 73 (4) of
the Income Tax Act, 2015 (Act 896); and
(iii) a quarterly return filed under section 72 of
the Income Tax Act, 2015 (Act 896);
(c)
in relation to value added tax, national health
insurance levy and special petroleum tax, a return
filed under section 52 of the Value Added Tax Act,
2013 (Act 870);
(d)
in relation to excise duty, a return filed under
section 9 of the Excise Duty Act, 2014 (Act 878);
(e)
in relation to taxes on imports, an import
declaration form filed under section 49 of the
Customs Act, 2015 (Act 891);
(f)
in relation to stamp duty, particulars submitted
under section 13 of the Stamp Duty Act, 2005 (Act
689);
(g)
in relation to airport tax, a return required under
section 3 of the Airport Tax Act, 1963 (Act 209);
(h)
in relation to communication service tax, a return
required under section 6 of the Communication
Service Tax Act, 2008 (Act 754);
(i)
in relation to casino revenue tax, a return required
under section 5 of the Casino Revenue Tax Act, 1973
(N.R. CD. 200);
(j) in relation to mineral royalties, a return
required under the Minerals and Mining Act, 2006
(Act 703); and
(k)
in the case of any other law administered by the
Commissioner-General, as specified in the relevant
legislation.
Assessments
2.
(1) For the purpose of this Act, "assessment"
includes
(a)
in relation to income tax an assessment made or
treated as made under section 122, 123 or 126 of the
Income Tax Act, 2015 (Act 896);
(b)
in relation to petroleum income tax, a return filed
under paragraph 1 (b);
(c)
in relation to taxes on imports, entry of goods
under the Customs Act, 2015 (Act 891);
(d)
in relation to stamp duty, an assessment made under
section 3 of the Stamp Duty Act, 2005 (Act 689);
(e)
in relation to the obligations referred to in
paragraph l(a)(ii), 1 (e), 1 (d), 1
(.g), 1 (h), 1 (i), 1(1) and l(k),
an assessment made under paragraph 3 in respect of
the obligation to file a tax return; and
(f) in relation to this Act, an assessment made
under section 37, 38, 39 or 77.
(2) The Commissioner-General may exercise all powers
under this Act with respect to an assessment
including powers under section 37 to 40.
Self-Assessment
3.
(1) Where a person files a relevant tax return, the
assessment is, unless otherwise indicated, treated
as made on the due date for filing the tax return.
(2) The assessment is in an amount equal to the net
amount of tax due as shown in the tax return.
(3) A "relevant tax return" means a tax return filed
in accordance with paragraph 1.
Enactment
Date of Gazette notification:
87
10th August, 2016.
GPCL, ASSEMBLY PRESS, ACCRA.
GPCLlA6061l,500108/2016
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