The Attorney-General (A-G) and Minister of Justice, Godfred Yeboah Dame, has cautioned that businesses that understate their profits and use other questionable tactics to dodge taxes would be subject to the full force of the law.
He said last Tuesday in an exclusive interview with the Daily Graphic that tax avoidance, evasion, and under-declaration of income were widespread throughout the nation and were depriving the government of vital funds for development.
"I believe that as a nation, we have a tax evasion issue. Tax evasion is a direct result of our system of oversight, as well as how accounting is carried out and how enterprises escape the tax net, according to Mr. Dame.
The legal sector was cited as one that was notorious for tax avoidance, and he said that some attorneys took in a variety of fees without paying taxes on them.
The A-G stated that his office will not hesitate to prosecute any attorneys found wanting for tax evasion while also urging them to be decent citizens and pay taxes in accordance with their oath.
Collaboration
According to Mr. Dame, his organisation is working with the Ghana Revenue Authority (GRA) and other organisations to guarantee that businesses that underpaid taxes to the nation were forced by law to fulfil their tax commitments.
The A-Department G's reviewed and looked into tax cases from the GRA as part of the partnership, he said, and also provided legal assistance to assist the GRA.
According to the Attorney General, it was because of this cross-sectoral cooperation that the Chief Justice established a special tax court to aid in the swift resolution of tax matters.
Such partnerships, he claimed, have already helped recover hundreds of millions of dollars in unpaid taxes from businesses, particularly those in the extractive industry.
"We are now prosecuting such firms, and very soon, we will also be prosecuting other businesses, regardless of how large they are. The decision to pay or be prosecuted rests with the corporations, he added.
Mr. Dame stated that when tax assessments were made, businesses were often given a payment deadline.
The A-G stated, "If they do not pay, we will have action under the country's tax and criminal laws to secure recovery of the money."
fight about taxes
The main legal adviser to the government made the remarks in response to a recent argument between the GRA and a few multinational corporations about the payment of taxes.
The GRA assessed a GH8.21 billion tax obligation on MTN on January 11 of this year. Penalties and interest costs are included in the assessment.
Following an examination by GRA employing a third-party consultant and a new methodology based on call data records (CDR), recharges, and other data on MTN Ghana for the years 2014–2018, the tax assessment was made.
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