- 6 Marks
Question
Ghana Union Traders Association (GUTA) has expressed their dissatisfaction with the government and the Ghana Revenue Authority (GRA) on handling activities of non- Ghanaians who choose to engage in business reserved for only Ghanaians. They have consequently threatened not to honour their tax obligation until their concerns are addressed.
Required:
Write to the Commissioner-General indicating the areas of activities that are preserved for only Ghanaians and why you think the Commissioner-General is right in taxing all businesses irrespective of their ownership except as exempt by law. (6 marks)
Answer
Section 27 of GIPC Act 2013, (Act 865), provides that, a person who is not a citizen or an enterprise which is not wholly owned by citizen shall not invest or participate in the following:
- the sale of goods or provision of services in a market, petty trading or hawking or selling of goods in a stall at any place;
- the operation of taxi or car hire service in an enterprise that has a fleet of less than twenty-five (25) vehicles;
- the operation of a beauty salon or a barbershop;
- the printing of recharge scratch cards for the use of subscribers of telecommunication services;
- the production of exercise books and other basic stationery;
- the retail of finished pharmaceutical products;
- the production, supply and retail of sachet water;
- all aspects of the pool betting business and lotteries, except football pool.
GRA is right because it has an obligation to assess and collect taxes from persons who engage in business activities. GRA administers taxes and does not regulate business activities.
GUTA may engage Government on its assertions and allow GRA to administer taxes in accordance with its laws.
- Tags: GRA, GUTA, Non-Ghanaian businesses, Reserved Activities, Tax Administration
- Level: Level 3
- Topic: Tax administration in Ghana
- Series: NOV 2021
- Uploader: Kwame Aikins