Prior to the recent implementation of a 10 percent tax on winnings derived from lotteries, casinos, betting, and other games of chance, a comprehensive set of regulations were outlined.
The chairman of the GRA Gaming Committee, ?Thomas T. K. Agorsor, elucidated the procedure for calculating the withholding tax based on gross winnings from lotteries. The calculation involved subtracting the stake or bet amount along with the winnings from the payout at the end of each gambling event.
Exceptions were detailed; if a game was canceled and the player's stake was refunded, or if the payout equaled or was less than the stake value, withholding tax would not be applicable. In cases where a negative gross gaming revenue occurred in a given month, operators were permitted to offset this negative balance against subsequent months' positive gross gaming revenues.
Mr. Agorsor clarified that no tax would be levied on gross gaming revenue for the month during which a negative balance was recorded. The tax on gross gaming revenue was required to be paid alongside the filing of returns, due on the 15th day of the month following the transaction return month.
Annual tax returns for gross gaming revenue were also mandated, with payments due within four months after the basis period's conclusion.
In situations where the GRA determined that the annual GGR tax payment was less than the monthly tax liability, the GRA would issue an assessment notice, encompassing applicable interest and penalties, to the lottery operator.
Conversely, if the payment exceeded the GGR tax liability, the operator could carry forward the excess to the following month.
In cases where no withholding tax was payable for a specific month, the lottery operator had to submit a "nil" return within 15 days of the month's end. To ensure accurate tax assessment, the Commissioner-General had the authority to establish a revenue monitoring system to verify the actual revenue accruing to lottery operators. Physical assessments of an operator's infrastructure or system could also be conducted.
These detailed guidelines aimed to create a transparent and regulated environment for tax assessment and payment related to gambling activities, ensuring that operators complied with their tax obligations.?
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