Other related matters – Provision of TCC

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Act 1029 requires a tax clearance certificate from each member of a consortium or joint venture, and sub-contractors that submits a tender or applies for a contract including a contract to supply goods, works and services to a Government Ministries, Government Agencies, Local Government Authorities and other bodies in which public funds are vested.

Revenue Administration (Amendment) Act 2020

In a bid to increase the effectiveness of tax administration and the collection of taxes in Ghana, the Parliament of Ghana has passed into law an amendment called Revenue Administration (Amendment) Act, 2020 (Act 1029) which was gazetted on 6 October 2020. Act 1029 seeks to amend some Sections in the Revenue Administration Act, 2016 (Act 915), which is the principal enactment for the administration and collection of revenue by the Ghana Revenue Authority and for related matters.

The amendment basically makes the underlisted changes to Act 915:

  • Tax objection process
  • Establishment of an independent tax appeals board
  • Waiver of penalties on voluntary disclosure for making false or misleading statements

This tax alert intends to provide an overview of the above changes.

Tax Objection Process

Act 1029 makes provision for a 2-tier process;

  •  Taxpayers who are dissatisfied with a tax decision to appeal against a tax decision made by the Commissioner-General (C-G) of the Ghana Revenue Authority (GRA) within thirty (30) days to the Independent Tax Appeals Board herein referred to as “the Appeals Board”.
  • Secondly, a taxpayer who is dissatisfied with the decision made by the Appeals Board may within thirty (30) days from the date the decision was served seek redress in High Court.

Prior to this provision, taxpayers only had the option to appeal against a tax decision made by the C-G at the High Court within 30 days of the decision. 

Establishment of an Independent Tax Appeals Board

Act 1029 has now introduced an Independent Tax Appeals Board to the Revenue Administration process in Ghana. The Independent Tax Appeals Board will act as an Independent Board setup to hear and determine appeals against tax decisions made by the C-G.

The Board, therefore, provides a platform for taxpayers and the Revenue Authority to resolve tax disputes amicably.

Decisions made by the Appeals Board remains binding on all parties (such as the taxpayer and the GRA) to the case under consideration unless a High Court says otherwise.

The Appeals Board’s membership composition, tenure of office, sources of funding for its operations, proceedings and process for hearing appeals have all been spelt out in the newly introduced Fourth Schedule of the Revenue Administration Act. 

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