Connect with us

Business

GRA Offers Tax Incentives To Businesses

Published

on

GRA Offers Tax Incentives To Businesses

The Ghana Revenue Authority (GRA) has rolled out a tax incentive scheme for taxpayers to help cushion businesses and people against the coronavirus disease (COVID-19) pandemic.

The scheme involves waiving the penalty and the accrued interest on tax arrears for both corporate and individual taxpayers as a motivation for them to regularise their tax obligations during the crisis period.
The package from the authority took effect from April this year and allowed people and institutions that had either not registered with the GRA or breached the tax payment and the filing of returns schedules to apply to the authority for waivers.

It followed the passage of the Penalty and Interest Waiver Act, 2021 (Act 1065) that allowed the GRA to grant waivers to taxpayers for penalty and interest on accumulated tax arrears up to December 31, last year.

Interested people have between now and September 30 to apply for the waiver from the tax collection and administration body.

Prosecution

The authority was responding to a Daily Graphic enquiry about Act 1065, which in part says: “A person who takes advantage of this limited-time opportunity will not be liable to prosecution or face any other enforcement action with respect to the tax due for the relevant period.”

It explained that the waiver was applicable to taxpayers who had not previously registered with the GRA but now wanted to benefit from the waiver.

It said such people would have to apply for registration as taxpayers and “make full disclosure of the necessary information for assessment”.

“The waiver is also applicable to persons registered with the GRA but who have not submitted or filed the required tax returns or have defaulted in the submission of tax returns or are in arrears for the payment of taxes,” it said.

It noted further that the waiver was not applicable to “a person who has failed to comply with the provisions of any law administered by the Commissioner-General that relates to the furnishing of a tax return or payment of a tax due from January 1, 2021”.

“It is, however, important to note that the waiver does not apply to payments and returns due from January 1, 2021,” it explained.

Application

The GRA advised taxpayers and prospective ones to take advantage of the programme to regularise their tax obligations by applying for the waiver from any of the taxpayer service centres (TSCs) or Post Clearance Audit, Customs Division, nationwide.

It said applicants were required to submit returns or amended returns and make full disclosure of undisclosed liabilities relating to the period up to December 31, 2020.

It added that the application must also include the payment or payment arrangements to pay all resulting taxes, as well as the payment or payment arrangements to pay assessed and outstanding taxes.

Benefits to taxpayers

A policy by the government, the penalty and interest waiver was first announced in the 2021 Budget Statement as an incentive package to help revitalise businesses and help them back to conformity with tax laws after the COVID-19 pandemic affected their fortunes.

A Professor of Economics, Prof. Peter Quartey, told the Daily Graphic yesterday that the initiative was a booster to both taxpayers and the economy.

He said the COVID-19 had affected the cash flow of businesses so much that it made it difficult for some of them to be able to honour their tax obligations fully.

By granting taxpayers amnesty, he said, the government, through the GRA, was hand-holding them out of challenges to a point where they would be stronger again to continue to honour their tax obligations.

“When you visit some of these firms, you notice that because of the impact of the COVID-19, some of them struggle to even pay their workers. It means that their ability to pay taxes is limited and so giving them this temporary relief will give them additional income to continue to operate and be able to pay taxes in the long run,” he said.

The Director of the Institute for Statistical, Social and Economic Research (ISSER) of the University of Ghana, Legon added that the waiver programme would also reduce the cost of litigation between the GRA and defaulting taxpayers to the economy.

“Ultimately, this will benefit businesses and they will be able to create and sustain jobs and increase tax payments in the long run,” he added.

The GRA projects to collect GH¢57 billion in non-oil tax revenue this year, after collecting GH¢47 billion in 2020.

 

Source: graphiconline.com

Continue Reading
Advertisement

Business

Take Advantage Of Ghana’s Business-Friendly Climate  – President Akufo-Addo To Norwegian Business Community 

Published

on

Take Advantage Of Ghana’s Business-Friendly Climate  – President Akufo-Addo To Norwegian Business Community

The President of the Republic, Nana Addo Dankwa Akufo-Addo, has urged the business community from Norway to take advantage of the business-friendly climate currently existing in Ghana, and invest in the country.

According to President Akufo-Addo, “We will continue to create and maintain the conducive investment environment that not only guarantees the safety of investments, but good returns as well. We will continue to protect legitimate investments, and preserve the atmosphere of peace, stability and security that has been an important contributor to the increasing presence of Norwegian businesses in Ghana.”

Speaking at the Ghana-Norway Business Forum, held on Friday, 26th November 2021, at the Kempinski Hotel, the President stated his government has, over the last four (4) years, done a lot of work in correcting the fundamentals of the economy which were all pointing in the wrong direction when he took office in 2017.

“We have, over the period, put in place measures needed to reduce the cost of doing business, improve the business environment, and made the Ghanaian economy not only one of the most business-friendly economies in Africa, but also one of the fastest growing economies in the world between 2017 and 2020, averaging annual GDP growth rates of 7% for those years, up from the 3.4% GDP growth rate we inherited from the previous government in 2016,” he said.

With COVID-19 wreaking havoc on economies the world over, President Akufo-Addo reassured that Government is “working to grow the economy at a much faster rate this year, which will enhance the prospects of a win-win environment for both private sector and country; an environment where companies do not just survive, but actually thrive.”

The major programme driving the revival and revitalization of the Ghanaian economy, he said, is the one hundred-billion-cedi (GH¢100 billion) Ghana CARES ‘Obaatampa’ Programme, whose main elements include supporting commercial farming and attracting educated youth into commercial farming; building the country’s light manufacturing sector; developing engineering/machine tools and ICT/digital economy industries; amongst others.

“It continues to be an exciting time to be in Ghana, and to do business in the country. Already, global car manufacturing giants, Toyota and Nissan of Japan, Sinotruk of China, have established assembly plants in the country, as first steps towards the production of vehicles in Ghana,” he said.

President Akufo-Addo continued, “Twitter is establishing its African Headquarters in Ghana, and Google’s first African Artificial Intelligence Centre is located in Ghana. We are privileged to play host to the Secretariat of the African Continental Free Trade Area, which represents, currently, a market of some 1.2 billion people, spread over fifty-four (54) countries, with a combined GDP of $3 trillion. Trading in the emerging single market began on 1st January this year”.

With Ghana witnessing a significant rise in interest from Norwegian investors, in several sectors of the economy, including agriculture, building and construction, general trading, manufacturing, oil and gas, and tourism, President Akufo-Addo commended some of his government’s flagship policies to them.

“Government is also embarking on an aggressive public private partnership programme to attract investment in the development of both our road and railway infrastructure. We are hopeful that, with solid private sector participation, we can develop a modern railway network with strong production centre linkages and with the potential to connect us to our neighbours,” he said.

Continue Reading

Business

KGL Group Fully Committed to Delivering Value in Excess of GHc100Milllion Per Annum to the National Economy and Government

Published

on

KGL Group Fully Committed to Delivering Value in Excess of GHc100Milllion Per Annum to the National Economy and Government

The successful operations of KGL Group and its subsidiary companies, KGL Technology Limited, KEED and KGL Foundation, are set to contribute significantly to the national economy and Government of Ghana at an expected cumulative value in excess of 100 million Ghana Cedis per annum.

KGL Group has contributed significantly to revenue growth and capacity development across its operations in the lottery industry, collaborations with the Ministry of Youth and Sports, Ghana Football Association and social intervention programs under its CSR wing, the KGL Foundation.

The Group is set to continue its value creation drive across its ecosystem of strategic partners and envisages a total value of 100million Ghana Cedis per annum to be committed.

The key levers to guide the allocation of funds by KGL Group in concert with strategic partners and to the national economy are as follows:

1. Growth in the contribution of Corporate Taxes and other taxes to the Ghana Revenue Authority (GRA) and the Government of Ghana.

2. Value within the lottery industry from:

a. Digital lotto marketer licensing and operational fees to the National Lottery Authority (NLA) in accordance with the ongoing review of license and operational terms and conditions for KGL Technology Limited.

b. Payments to the Stabilization Fund that seeks to provide support to revenue shortfalls of the Lotto Marketing Companies as a result of the digitalization policy of NLA-KGL Technology Limited.

c. Seed capital to set up a Pension Scheme for the Lotto Marketing Companies which is currently non-existent.

3. Undertaking of Corporate Social Responsibility activities in the areas of Education, Healthcare Delivery, Sports Development, Culture, and Tourism.

4. Growing investments in the media ecosystem and the entire value chain of marketing and advertising.

In the case of the lottery industry, this announcement is singularly one of the most profitable agreements the National Lottery Authority (NLA) has brokered considering zero investment made by the Authority towards infrastructure set up and operations of KGL Technology encompassing setting up the entire architecture to run digital lottery operations on the *959# Short Code and 5/90 mobile App under consumer brand name 590Mobile by KGL’s KEED subsidiary.

To put this in context, NLA would need to generate over GHc450 million volume of gross sales at Point-of-Sale Terminals per annum for the Authority to be able to accumulate a net profit of GHc50 million which will now be delivered at no cost by KGL Technology to the Authority pursuant to reviewed agreement.

This makes the current terms of the agreement between KGL Technology Limited and the National Lottery Authority (NLA) under review by the current Board definitely a game-changer for the revenue mobilization efforts of the National Lottery Authority (NLA), Lotto Marketing Companies, and the Government of Ghana as a whole.

KGL Technology Limited since its inception has contributed significantly to the fortunes of the National Lottery Authority (NLA) and the national economy.

In the area of sports development, the KGL Group has also partnered with the Ministry of Youth and Sports, the Ghana Football Association, and the Senior National Team, the Black Stars ahead of the AFCON and 2022 World Cup Campaigns. Besides this collaborative project, KGL Group recently also committed significant financial resources to the Ghana Football Association for the development of Juvenile Football for a strategic period of 5 years.

KGL Group through its KGL Foundation has equally supported several Charity Organizations, Cultural and social-economic activities across the Country.

KGL Technology Limited has at all material times honored its tax obligations to the Ghana Revenue Authority (GRA) and Government of Ghana and as a responsible corporate citizen, KGL Technology Limited reiterates its full commitment to the revenue mobilization efforts of the National Lottery Authority (NLA) and Government of Ghana, thereby contributing significantly to the Nation’s development agenda.

Issued by: Management of KGL Group

Continue Reading

Business

CODA Hands Over Two Projects At Breman Essiam in Ajumako Enyan Essiam District 

Published

on

CODA Hands Over Two Projects At Breman Essiam in Ajumako Enyan Essiam District

The Coastal Development Authority (CODA) has handed over a Lorry Park and a modern Community Library to the chiefs and people of Breman Essiam in the Ajumako-Enyan-Essiam District.

Community Library at Breman Essiam

Community Library at Breman Essiam

The ceremony was graced by traditional leaders led by the paramount Queen mother of Breman Essiam, Nana Efua Esiwa II, the DCE of Ajumako Enyan Essiam, Hon. Ransford Kwesi Nyarko and the DCD, Mr. Abdul Mohammed K. Also in attendance was the Assembly Member of the area, Hon. Ibrahim Issakah, Staff of the AEEDA, Representatives of GPRTU and the general public.

The DCE recounted the deplorable state of the Lorry Park and the Library in the past and commended the efforts made by the Omanhene of the Breman Essiam Traditional Area, Odefour Afankwa III in getting these projects.
Hon. Ransford Nyarko, stated that the projects are a dream come true for the community and the District at large.

The CEO of CODA Jerry Ahmed Shaib ESQ expressed the delight of CODA for the achievement. He was glad that the projects were not imposed by the Authority but rather ones that met the needs and aspirations of the people based on proper consultation with all stakeholders.

He again revealed that the projects being handed over and many others ongoing in the District run under the Infrastructure for Poverty Eradication Programme (IPEP). He commended President Akufo-Addo for fulfilling his “one million dollars per constituency” promise to the people of Ghana especially, rural folks. The CODA boss also took the opportunity to outline other projects which were being executed within District.

The gathering was assured of ongoing collaborations with institutions like the Ghana Library Authority to stock the Library as well as GIFEC to provide ICT equipment for the E-Learning wing of the Library.

Continue Reading

Trending