a)

The Commissioner-General (C-G) may refuse to register a person for VAT on the following grounds:

1. The person has no fixed place of abode or business (principal place of business unknown).
2. The person will not keep proper accounting records relating to any business activity carried on by that person.
3. The person will not submit regular and reliable tax returns as required by or under the Act.
4. The person is not a fit and proper person to be registered.

   b) Lay-away agreement and betting as supply of services Where a lay-away agreement is terminated or cancelled and the seller retains an amount paid by the purchaser or recovers an amount the purchaser owes under the agreement, the cancellation or termination is a supply of services by the seller in respect of the agreement. Lay-away agreement means a sale transaction whereby goods are reserved by payment of a deposit and subsequently made available on full payment for the goods.

   c) Section 48(12) of Act 2013, (Act 870), as amended, and Regulation 48 of L.I. 2243 provide that a taxable person can recover VAT on stock and capital goods purchased or imported before registration, under the following conditions:

   1. The goods must still be owned and possessed by the taxable person.
   2. For stock, the purchase or import must have occurred within four months before the registration date.
   3. For capital goods, the purchase or import must have occurred within six months before the registration date.
   4. The taxable person must have a tax invoice or relevant customs entries.
   5. The taxable person must provide an inventory of all goods on hand as of the effective date of registration.
   6. Claims for VAT recovery must be submitted using the prescribed form.                                                                                                                                                                                                                                                                                                                      d)

      Naa Pioluo

       

      Description	GH¢
      Cost (Note 1)	500,000
      NHIL (2.5% * 500,000)	12,500
      GETFL (2.5% * 500,000)	12,500
      Covid-19 L (1% * 500,000)	5,000
      CST (5% * 410,172)	25,000
      	555,000
      VAT (15% * 555,000)	83,250
      VAT Inclusive	638,250

      i) VAT: GH¢83,250 ii) National Health Insurance Levy (NHIL): GH¢12,500 iii) Ghana Education Trust Fund Levy (GETL): GH¢12,500 iv) Covid-19 Levy: GH¢5,000 v) Communication Service Tax (CST): GH¢25,000

      Note 1: Tax Exclusive amount = 100 / 127.65 × 638,250 = 500,000

      e) A close relative of yours is into a profitable business in Ghana. The business has had a tax decision made on it by the Commissioner-General. Your relative has objected to the tax decision and the matter has been referred to the Technical and Objection Committee of the Ghana Revenue Authority (GRA) for a determination. Your relative has invited you on the matter to represent him before the Technical and Objection Committee.

      Required: What steps will you follow to ensure proper representation and success in resolving the matter?

      The following steps will be taken:

      • Ask for appointment for that engagement.
      • Determine the appropriate reward.
      • Write to the Ghana Revenue Authority regarding my appointment to represent my relation (the taxpayer).
      • Acquaint myself with the facts to enable me to meet the committee.
      • Recuse myself if it will create problems for me.