• 4 Marks

AT – Nov 2018 – L3 – Q1d – Tax administration in Ghana

Explaining the term "class ruling" and its relevance in tax administration.

In line with best practices, the Ghana Revenue Authority is mandated to encourage voluntary tax compliance to shore up revenue. This, among others, includes responding to taxpayers’ requests promptly.
Required:
Explain the term class ruling and its relevance. (4 marks)

  • Class ruling: A class ruling is a tax ruling issued by the Commissioner-General to a specified class of taxpayers. It becomes applicable to persons within that class (e.g., real estate developers).

Relevance/Effects:

  • A class ruling provides the position of the Commissioner-General regarding the application of tax laws to an arrangement proposed or entered into by the class of taxpayers.
  • It binds the Commissioner-General, provided that the taxpayers in the class make full and true disclosure of all aspects of the arrangement.
  • However, it does not bind the taxpayers, meaning they are not obligated to follow the ruling.
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