The Tax Justice Coalition Ghana has urged the public to honour their tax obligations including Gift tax.
According to the Coalition, citizens and resident persons must endeavor to file returns and pay taxes on taxable gifts received during the yuletide.
The Internal Revenue Act 592 enjoins Ghanaians and resident persons to pay 15 per cent gift tax rate on any gift valued at GH¢50 and above.
Ghana is reported to be losing about GH¢8 billion annually due to the non-payment of taxes on gifts received by citizens, including government officials
Gifts tax is charged on monetary gifts, bonds, shares, goods, chattels, permanent structures and land presented as gifts with a market value above Ghc50.
Returns and Payment of Gift Tax by the receiver shall be done within thirty (30) days of receipt by furnishing the Commissioner with a return in writing containing the description and location of the taxable gift, total value of the gift, details of the donor among others.
Speaking to the Media at a Public Forum held by the Coalition in Koforidua on Tax Compliance and Responsibility in Ghana, the Tax Justice Coalition -Ghana’s Zonal Coordinator for Ashanti, Brong Ahafo and Eastern Regions, Christopher Dapaah said it is time Ghanaians pay all forms of taxes, adding, “Ghana Beyond Aid is about paying our taxes responsive enough to be able to go with the tax that, we will not be depending on donors”
He, therefore, reminded the citizenry of the existence of gift tax component which is mandatory by law but largely not being complied with.
“within the festive occasions like Christmas, a lot of people will be given gifts. If you are given a gift more than Gh50 you are supposed to pay your gift tax. We want to use this occasion to appeal to the citizens to be very adhesive to this policy. The time has come for us to go all out to pay all type of taxes”.
Speaking on the theme for the forum “Addressing Policy Challenges and Regulatory Loopholes to improve Tax compliance in Ghana”, the National Coordinator of Tax Justice Coalition -Ghana, Leonard Shang -Quartey said the Coalition’s aims is to help achieve tax transparency in Ghana to encourage many to honour their tax obligations.
He said, to achieve this, the Coalition has been embarking on a nationwide dialogue for stakeholders to share their challenges and concerns in paying the required taxes which will be shared with the GRA.
“the forum is to provide a platform where the GRA and Tax Payers will get to know which others challenges. Why is is that citizens or most small Businesses are not honoring their tax obligations as expected.some of them have genuine concerns .most of it has to do with
availability of information-what to pay, where are you to pay and how much are you to pay”
Some participants mostly small scale business owners mentioned to Starr News issues of lack of awareness on various forms of taxes, Lack of accountability and transparency on the part of the state, corruption, Inequalities in development and multiplicity of taxes imposed on their businesses as some of the common challenges.