Question Tag: GRA Regulations

(a). Hi Yaw,
We need your advice on a new development in our outfit concerning the payment of salary to one of our employee who has been assigned to our project in Guinea. We shall be paying him physically from here (Ghana) and surcharge this cost to our Guinea Office as that is where we want his cost to settle in.

Please kindly advise us on the tax implications as we do not want to pay double tax on this both in Ghana and in Guinea.

The employee is in the books (payroll) of the Ghana Office currently and is living in a house rented by the Ghana office. He has paid his tax up to date of his transfer.

Required:
Please advise as appropriate.

(b). A VAT validation team visited Otere Company Ltd., a VAT registered entity for a routine audit. The validating team found no significant VAT records to support Otere’s business activities and the monthly VAT return. The MD of Otere responded to questions posed by the VAT team leader that it is not his business to keep records for the VAT office at his own cost.
The MD further said that he keeps records as he finds useful for his business interests. ‘It is the business of the VAT office to keep records for VAT registered persons. Why should I pay the salaries of staff only to keep records for the VAT office?’ he opined

Required:
As leader of the VAT team, kindly discuss the position of the VAT Act with respect to the keeping of records for purposes of the VAT.