The Ghana Revenue Authority (GRA) on Wednesday organized a tax education seminar for professionals, namely, medical practitioners, lawyers and accountants advising them to file regular tax returns to enable them to enjoy personal tax relief.
A tax return is an official statement of information from any person chargeable of tax to enable the Commissioner of tax to assess the individual rightly.
Mr James Anaman, acting Head of Operations in-charge of Domestic Tax Revenue Division of GRA, addressing the participants announced that,
Parliament through Legislative Instrument (LI) 1965, had introduced new personal tax rates to replace those which had been in existence since 2006.
The new rates, which took effect in June this year, seeks to increase the earnings of the taxpayers especially low income earners to enhance
living conditions because it had reduced the tax payable by individuals.
Under the old income tax rate, an individual had GH�240 of annual income tax free, now an individual has GH�1,008 of annual income as tax
free, this means that persons earning under GH�1,008 a year, who file their tax returns annually, would be exempted from paying tax.
Mr Anaman said: �The new tax rates would also bring respite to taxpayers, especially workers whose salaries have fallen within the higher tax brackets in the old regime.�
He mentioned that an important component of complying with the tax laws was complying with the provisions on withholding taxes and submission of Value Added Tax (VAT) returns.
Mr Anaman advised employers saying, �It is your responsibility as employers to withhold tax on all payment to your employees be it salaries,
allowances, bonuses, benefits in kind and pay same to the tax authorities.�
He said the Domestic Tax Revenue Division of GRA would ensure that all withholding tax agents and all VAT registered persons lived up to their
responsibilities and would apply the law fairly to all manner of persons.
Mr Francis Akoto, Chief Inspector of Taxes in-charge of Training at the Division emphasized the need for filing tax returns, stressing that it was a statutory obligation, which when ignored was punishable by law.
He stressed that taxes were not voluntary payments, rather they were enforced contributions from citizens and all deemed fit to pay
The GRA was established in 2009 by an Act of Parliament and has integrated Customs Excise and Preventive Service (CEPS), Internal Revenue
Service (IRS) and Value Added Tax as well as organisations that support services of the three revenue agencies.
Its activities include paying revenue collected from the public into the Consolidated Fund, help combat fraud and tax evasion as well as advice government on tax policies.