egal Requirement for Payment of 30% Before an Objection is Determined:

Under the Income Tax Act, 2015 (Act 896) and the Revenue Administration Act, 2016 (Act 915), taxpayers have the right to object to assessments made by the Commissioner-General of the Ghana Revenue Authority (GRA). However, the law imposes certain conditions that must be met before an objection can be entertained, one of which is the payment of 30% of the tax assessed or a portion of the assessed tax that is not in dispute.

Here is the detailed legal position:

1. Section 42 of Act 915 – Objection Process:
   • A taxpayer who disagrees with an assessment by the Commissioner-General can file an objection within 30 days from the date of the notice of assessment. The objection must be in writing and should clearly state the grounds for disputing the assessment.
   • The Commissioner-General is required to review the objection and make a decision based on the merits of the case. However, before the objection can be considered, the taxpayer is required to pay 30% of the assessed tax or the undisputed amount.
2. Purpose of the 30% Payment Requirement:
   • The 30% payment serves as a form of security to ensure that the taxpayer has some financial commitment while the dispute is being resolved. It prevents frivolous objections and ensures that taxpayers who genuinely disagree with the assessment are still making some contribution toward the assessed tax liability.
   • This payment also protects the GRA’s revenue interests, ensuring that the government receives part of the tax liability while the objection process is ongoing.
3. Disputed vs. Undisputed Amounts:
   • If the taxpayer only disputes part of the assessment, the law allows them to pay the undisputed amount in full rather than the 30% of the total disputed assessment. This flexibility is designed to accommodate taxpayers who have legitimate disputes over only part of their tax liability.
4. Consequences of Non-Payment:
   • If the taxpayer fails to make the required 30% payment (or the undisputed amount) before filing an objection, the GRA is legally entitled to dismiss the objection without further consideration. The taxpayer will then be required to pay the full assessed amount, along with any applicable penalties and interest.
5. Appeal Process After Objection:
   • If the taxpayer is dissatisfied with the Commissioner-General’s decision on the objection, they may further appeal the decision to the Tax Appeals Board or the High Court. However, this appeal process does not absolve the taxpayer from the initial requirement of paying 30% of the disputed tax.

Key Points to Consider:

• The 30% payment requirement applies regardless of the taxpayer’s financial condition unless the taxpayer can prove financial hardship and negotiate a different arrangement with the GRA.
• The law is intended to balance the interests of taxpayers and the revenue authority by ensuring that objections are handled in good faith and that the government’s revenue is not unduly delayed by disputes.

Conclusion:
The Ghana Revenue Authority’s insistence on the payment of 30% before an objection is determined is consistent with the provisions of the tax law, specifically the Revenue Administration Act, 2016 (Act 915). The 30% payment serves as a security deposit to ensure that taxpayers are committed to resolving their disputes while still contributing to the revenue base.