- 20 Marks
Question
a). You are a trainee in the office in Brown Green and Associates, a firm of Tax Practitioners. A gentleman, identified later as Mr Kwesi Sikasem walked in to the office fuming with anger saying that he had received a Notice of Assessment from the Ghana Revenue Authority demanding the payment of a total tax liability of 1.2 million Ghana cedis for 2017 and 2018 Years of Assessment. In the course of discussion you realised that he has been in business since October 2016.
Required:
Explain to Mr Kwesi Sikasem the rights of the Commissioner-General to issue a Notice of Assessment and state what is expected in a Notice of Assessment.
b). Mr Thomas Smith a retired employee of the US Border Security has approached you seek your advice on the possibility of forming a company as a Customs House Agent in Tema.
Required:
With reference to the Customs Act, 2015 (Act 891) as amended, advise Mr Thomas Smith on the categories of persons that can engage in the business of customs house agent
Answer
a). Section 40 of the Revenue Administration Act, 2016 (Act 915) requires that where the Commissioner-General makes assessment under a tax law, the CG shall serve a written notice of assessment on the taxpayer. The notice of assessment shall state:
a) The name of the taxpayer
b) The Taxpayer Identification number (TIN).
c) The assessment by the CG of the tax payable by the tax payer for the period, event or matter to which the assessment relates.
d) The amount of tax remaining to be paid after any relevant credits, reductions or pre-payments.
e) The matter in which the assessment is calculated.
f) The reason why the Commissioner-General has made the assessment.
g) The date by which the tax is to be paid
h) The time, place and manner of the objecting to the assessment.
b). Under section 43 of the Customs Act, 2015 the following are the category of persons that the Commissioner-General is permitted to grant licence to as customs house agent:
i. A company or partnership wholly owned by indigenous Ghanaian.
ii. In the case of a company, the company is authorised by the regulations of the company to carry on business of a customs house agent.
iii. At least one director or an employee of the company holds a certificate of proficiency in customs business. iv. In the case of partnership, the partnerships by virtue of its partnership agreement authorised to transact business as a customs house agent.
v. At least a partner or an employee of the partnership holds a certificate of proficiency in customs business.
vi. The Commissioner-General may grant a licence under to a statutory body, State institution, or other institutions to transact business as a customs house agent where an employee of that body or institution holds a certificate of proficiency in customs business.
vii. A person who is granted a licence to carry on business as a customs house agent shall pay the prescribed fees.
viii. A customs house agent licence is valid for one year and may be renewed on payment of the prescribed fees.
ix. The Commissioner-General may suspend or revoke the licence of a customs house agent where the licensee breaches:
a) The condition specified in the licence or
b) The provisions of the Customs Act.
- Tags: Act 891, Customs Act, Customs House Agent, Licensing
- Level: Level 2
- Topic: Indirect Taxes
- Series: AUG 2019
- Uploader: Samuel Duah