Tax Provisions Available to Challenge a Tax Assessment

Poyooyo LTD can leverage several legal provisions to challenge the tax liability imposed by the GRA:

1) Objection to a Tax Decision (Section 42 of Act 915)

• A taxpayer dissatisfied with a tax decision may lodge an objection with the Commissioner-General within 30 days of being notified.
• The objection must be in writing, clearly stating the grounds for the objection.
• The taxpayer may request an extension of time if they are unable to file within the stipulated period due to reasonable causes such as absence from Ghana or illness.
• The Commissioner-General may waive or suspend upfront payment of disputed tax amounts based on certain considerations.

2) Objection Decision (Section 43 of Act 915)

• The Commissioner-General must review and respond to the objection within 60 days of receipt.
• If no response is given within the timeframe, the taxpayer may treat the objection as disallowed and proceed to appeal.
• If the Commissioner-General varies the tax decision in favor of the taxpayer, the liability may be reduced or nullified.

3) Appeal Against the Commissioner-General’s Decision

• If the taxpayer is still dissatisfied, they may appeal the decision to the Independent Tax Appeals Board within 30 days of the objection decision.
• This board provides an alternative dispute resolution mechanism before escalating to the courts.

4) Judicial Review at the High Court

• If dissatisfied with the Appeals Board decision, Poyooyo LTD can further appeal to the High Court within 30 days.
• The High Court has the power to confirm, annul, reduce, or increase the assessment imposed by the GRA.
• If still dissatisfied, an appeal can be made to the Court of Appeal and ultimately to the Supreme Court if necessary.

5) Effects of Appeal on Tax Payment (Section 45 of Act 915)

• Filing an appeal does not suspend tax payment, but the taxpayer may apply for deferment of payment pending the final determination of the case.

Recommendations for Poyooyo LTD

• Immediately lodge a formal objection with the Commissioner-General, citing errors in the assessment.
• Request a waiver of upfront tax payments to avoid financial strain.
• Prepare comprehensive tax planning documentation to justify compliance.
• If the objection is rejected, escalate the matter to the Appeals Board and High Court if necessary.