(a)     Act 896 has specifically exempted certain payments from withholding taxes.

1. Insurance premium paid to a resident insurance company.
2. Payment for sale of goods which constitute trading stock of both the vendor/seller and the purchaser. A sale of goods constitutes a trading stock of both the vendor/seller and the purchaser if the goods are the same goods that are being sold by the purchaser.
3. The interest or dividend paid or credited to a holder or member on the investment in an approved unit trust scheme or mutual fund.
4. Interest paid to a resident financial institution.
5. Payments made to persons specifically exempted from Income Tax                                                                                                                                                                                                                                                                                                                                          (b)

   Appointed VAT agents are required to:

   1. Withhold from payment to a VAT registered supplier, 7% of the taxable output value of standard rated supplies.
   2. Issue a withholding VAT credit-certificate at the time of making payment for the standard rated supplies
   3. Submit to the Commissioner General returns relating to the VAT/NHIL withheld for each period not later than the 15th day of the month immediately following the month to which the returns relate
   4. Pay the amount withheld for each period to the Commissioner General.
   5. Discharge all other duties and obligations applicable to them under the VAT Act 2015, (Act 870).                                                                                                                                                                                                                                                                        (c)
   6. First, it improves efficiency by automating processes such as tax return filing, data collection, and taxpayer registration. This reduces administrative burdens and encourages compliance, leading to increased tax revenues.
   7. Second, it enhances accuracy in tax calculations and reduces the likelihood of errors or fraud.
   8. Third, it improves transparency by providing taxpayers with online access to information and services, making it easier for them to understand their tax obligations and comply with the law.
   9. Additionally, technology-enabled systems can leverage data analytics to identify potential tax evasion or non-compliance, enabling the export company to take appropriate actions to maximize revenue collection.                                                                                                                                                                                                                                                                 (ii)
   10. The greatest challenge is resistance to change.
   11. Lack of requisite skills. There should be training and sensitizing the staff and stakeholders and hiring new staff with the requisite skills. There should be political support and improved their project management style.