Tax Amnesty: Policy a conduit for ‘political funding’ from taxpayers to finance elections – Prof Gatsi

The Vice President criticized the current tax structure as inadequate and proposed adopting a flat tax system, similar to Estonia’s simplified tax regime. “We are going to wipe the slate clean for every individual and every business and start a new tax system,” he declared speaking at an engagement with the Ghana National Chamber of Commerce and Industry.

Dean of the University of Cape Coast (UCC) Business School, Professor John Gatsi, has said tax amnesty granted to businesses and individuals by the Government does not change tax evasion and tax non-payment behaviour of taxpayers.

Making the assertion in a Facebook post, Prof. Gatsi averred data from the Ghana Revenue Authority (GRA) indicate that tax amnesty granted to taxpayers does not yield the expected results.

The Ghana Revenue Authority in 2019 revealed that its Tax Amnesty policy which was introduced to get taxpayers to clear all outstanding arrears was unsuccessful.

The policy, introduced in 2018 became apparent after the Authority failed to meet its target for the previous year. The Tax Amnesty spanned from February to September 2018 and it was to allow taxpayers whose taxes have been in arrears the opportunity to clear their debts without any penalties.

Prof Gatsi in his post on Facebook noted further that the Tax Amnesty policy could be politically abused and used to solicit funding from known taxpayers to finance elections.

“Tax amnesty is not a new strategy by government. This is a normal tax measure to allow tax payers laden with liabilities to start afresh. Politically it maybe abused by allowing recalcitrant businesses tilted towards a party in government to be free from tax misconduct,” he remarked.
“It could also be used to solicit political funding from known taxpayers to finance elections. Though the strategy has been with us for long, data from GRA shows it doesn’t change taxpayers’ bad behavior,” he added.
His assertion follows the promise by the Vice President, Dr Mahamudu Bawumia, to grant tax amnesty to businesses and individuals in 2025 if he wins the December 2024 presidential elections.
The Vice President criticized the current tax structure as inadequate and proposed adopting a flat tax system, similar to Estonia’s simplified tax regime.

“We are going to wipe the slate clean for every individual and every business and start a new tax system,” he declared speaking at an engagement with the Ghana National Chamber of Commerce and Industry.

 

Source:norvanreports

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