Features
Our lawyers must lead by example in fulfilment of their tax obligations
Income tax refers to a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. By law, taxpayers are required to file an income tax return annually to determine their tax obligations. Simply put, income taxes are sources of revenue for government to fund public services and provide goods for the citizens.
Personal income tax is a type of income tax that is levied on an individual’s wages, salaries and other types of income while business income tax applies to corporations, partnerships, small businesses and people who are self-employed.
GRA AND INCOME TAX COLLECTION
In accordance with the Income Tax Act 2015 (Act 896), the collection of these taxes falls within the jurisdiction of the Ghana Revenue Authority (GRA). It is the agency that is mandated by law to collect taxes on all forms of income such as wages, salaries, commissions, investments and business earnings. These personal income taxes can help fund government programmes and services such as national security, roads, schools, provision of water and electricity among others.
To facilitate the collection of these taxes, a Taxpayer Identification Number (TIN) has been designed by the GRA to determine people who are qualified and liable to register and pay taxes to the state.
PAYMENT OF TAXES WORLDWIDE
All over the world, paying your taxes is considered a civic duty, although doing so is also a requirement of the law. If you do not pay your taxes, the government agency that oversees taxes, will require you to pay, failure of which will attract penalties such as fines or imprisonment. Nobody irrespective of your status in society is above the law in this regard. Whether you are a lawyer, medical doctor, engineer, etc. you have to fulfil your civic obligation of paying tax.
Under the tax law, it is the employer’s responsibility to file a monthly tax returns on behalf of its employee. The employer is required to withhold the employee’s taxes to pay to the tax agency. Taxes withheld, must be filed and payment made by 15th of the month following the month in which these taxes are withheld. Additionally, the employer, shall not later than 30th April following the end of every year of assessment, furnish an Employer’s Annual Tax Deduction Schedule which shall specify tax withheld in respect of each employee. The return is required to outline salaries paid to each employee, exemptions, tax reliefs, chargeable income tax due and tax paid.
PROFESSIONAL BODIES AND THEIR TAX OBLIGATIONS
It is worthy to note that these obligations under the law apply to countries worldwide including our own country, Ghana, and our professional bodies are quite familiar with the provisions under the Act. It is, therefore, surprising to hear that about 6,000 lawyers in the country are not filing their income tax. Besides, many doctors and over 60, 000 business people have been evading tax of which the Ghana Revenue Authority (GRA) is fully aware and has a reliable data on them.
PRESIDENT LASHES AT LAWYERS FOR FAILURE TO PAY TAXES
This revelation came to light recently when the President, Nana Addo Dankwa Akufo-Addo, addressed the Ghana Bar Association’s 2021 conference at Bolgatanga in the Upper East Region. He described the failure of some lawyers in the country to pay their taxes as embarrassing.
“It is embarrassing that lawyers are often on top of the list of those who flout our tax laws and use their expertise to avoid paying taxes. They appear to think that being members of the learned profession puts them above compliance with everyday duties like paying taxes,” the President said, adding that “they will soon be receiving friendly calls from the tax authority. I sincerely hope that those involved will swiftly move to regularise their tax affairs before the GRA moves to crack the whip”.
It is a shame that lawyers who parade as learned professionals should abandon their civic responsibility of payment of taxes on their earnings. This unhealthy situation would have been kept under the carpet if the president had not highlighted the issue at the GBA conference.
APPLYING THE NECESSARY SANCTIONS AGAINST DEFAULTING LAWYERS
The GRA needs to calculate the amount involved on individual basis and apply the necessary sanctions, especially payment of interests on the amount to serve as a deterrent to others. Similarly, other professionals such as the doctors who have defaulted in the payment of their income taxes must also face similar consequences. If an ordinary worker defaults in the payment of income tax, the GRA will be on the neck of that fellow. Besides, officials from the GRA have been moving from shop to shop as well as other small scale businesses closing them for failure to honour their tax obligations and applying sanctions. What type of country is this, in which the laws are rigidly applied to certain group of people and individuals while others are let off the hook? That is interesting and amazing!
GRA OUGHT TO BE BLAMED FOR THESE INCOME TAX SHORTFALLS
The Ghana Revenue Authority must take the blame for its failure to act when it first discovered this anomaly in spite of all the facilities it has including the PIN numbers of the defaulters and to allow the numbers to increase to this magnitude. What then is the essence of acquiring these TIN numbers which people have to struggle to get from the GRA?
It is a fact that if we continue to behave in this way where those who are qualified to pay taxes that are ‘badly’ needed to develop this country are shying away from that obligation, our country will never witness any progress in its development. The question that many Ghanaians will be asking is that; Do these defaulting lawyers have the morality to defend people who have defaulted in their obligations, when they themselves, are the worst offenders? This negative behaviour on the part of these lawyers and other professionals can be one of the corrupt practices we have been experiencing in this country which we must deal with as a nation. It is not only when you dip your hands into state coffers and steal funds meant for development that makes you corrupt but also, the failure to fulfil your tax obligation as required by law.
LATE FORMER PRESIDENT PROFESSOR MILLS’ OBSERVATION
The situation as it stands now will make one to suspect that some officials within the tax collection agencies have been colluding with people in influential positions to evade taxes thereby denying the state money needed to carry out development projects in this country. The late former president John Evans Atta Mills of blessed memory, saw what happened years back when he paid an unannounced visit to the CEPS offices and spoke vehemently against the practice. He saw a situation in which young personnel who had gained employment to these tax collection institutions had become millionaires overnight and acquired huge mansions and expensive vehicles through some of these dubious and obnoxious practices at the expense of the state.
WE NEED THESE TAXES TO BUILD THE NATION
This country needs to develop to an appreciable level and it is some of these taxes that can be used to carry out this agenda. Therefore, we need to be stringent and meticulous in the collection of our legitimate taxes to prosecute this ambitious development. The IRS and other tax collection bodies in the country need to rise up to the challenge of raking in the needed revenue for the state. Our professional bodies must also encourage their members to pay their legitimate taxes to the state. Anything short of that is an affront to our democratic advancement.
Contact email/WhatsApp of author:
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By Charles Neequaye
Features
The Prophet part 2
“I can see in the spirit, that some of you have been trading for years without seeing any meaningful profits, some young women have been disappointed by men who have either abandoned them and left for foreign lands and forgotten about them, or stopped sending money for the upkeep of their wives and children.
I can see young men who are desperate for visas to travel abroad but have either been duped by visa contractors or refused at the embassies. From tomorrow, I assure you, the visas will be given.
Young women, I have news for you. You will receive telephone calls, and you will hear very good news. Handsome young men with money in their pockets will come and marry you, and take care of you. Traders, you will get big business and big profits from today. From today, you will see that I am a true prophet who has come to deliver you.”
Shouts of “Amen,” “thank you Prophet” and “I receive it” greeted his sermon. After a final prayer, he asked the congregation to come early the following day, and bring others, because there would be many testimonies.
There would also be “special anointing” for great miracles. Although he did not ask for an offering, most of the people came and dropped notes, and coins at the “pulpit.” When they left, Antobam counted the money.
“GH¢900!” he almost shouted, ‘and I did not even ask for an offering. This is fantabulous!’ Going to the Nana Kofi Broni shrine, he told himself, was a very wise move.
He started making plans……He had to choose a few assistants who would carry out his orders……. He had to hire some chairs as soon as possible……He had to find a suitable piece of land and, if possible, build his own church……. He had to start looking for a nice car, befitting the status of a popular preacher …… And, most importantly, he had to select two, three or four nice, young women to take care of his needs, apart from the servants who would cook, wash, iron and do other errands for him.
Abruptly, he told himself, this hungry, scruffy Kukurantumi boy was being transformed into a man of power and money, with some of the most beautiful women in town at his beck and call. Wow!
After a shower and supper, he shut the door to the very small room that served as his bedroom and dropped on the bed. Almost immediately, the shrill sounds, like whispers, began.
This time he did not express any fears. He realised to his great surprise that even though the sounds were not in the form of any language, he could understand them.
Tomorrow there will be testimonies……they will give money……. some rich people are being prepared …….they will bring big money ………. we will give them what they want, and they will bring money ……. big money …….big, big money……the women will also come, a number of them. ‘
He went to sleep smiling and whispering to himself, ‘big, big money, and women!’
He woke up at 5 and took a shower. After a breakfast of tea and several slices of bread he set off. On reaching the venue he saw to his great surprise that the place was full.
Very full, and quite a number of people rushed to embrace him and give him the wonderful news. The excited people narrated the testimonies about big sales, telephone calls from relatives directing them to go to Western Union, and impotent husbands who had miraculously rediscovered their magic powers.
He was truly glad that Nana Kofi Broni’s magic had already started working, but most of his attention was focused on the ladies in the congregation. He noticed to his great delight that some of them were really nice. I must start making my selection, he told himself. Today!
“Give a mighty clap offering to the great, mighty one for his wonders among us!” he started, and the response was very big.
“I said yesterday that you were going to see signs and wonders, and I am very happy that my word has been fulfilled. Even though we have taken allowed one hour for testimonies, many more of you would like to testify.
Tomorrow, I promise you that there will be ample time. I will only preach a short sermon. The rest of the time will be taken up by consultations, after which I will give directions on what to do to ensure that you defeat your enemies, secure your marriage and, most importantly, continue increasing your profits in your business.” His sermon was interspersed with ecstatic shouts of “Amen,” “it is true,” “God bless you” and “I receive it.”
His final word was emphatic; “Big miracles are coming your way. Keep attending church, and don’t forget to give thanks to God.”
By Ekow de Heer
Features
Full Gospel Businessmen Fellowship launches project to transform young lives
The Full Gospel Businessmen’s Fellowship International (FGBMFI) Ghana has launched the Senior High Schools and Colleges Project (SCP) aimed at empowering and transforming the lives of young people.
Speaking at the launch, Professor Mike Ocquaye, the former Speaker of Parliament, emphasised the need to catch them young and train them as the current times were challenging.
He lauded the project, calling on all to support it, saying “In fact, it’s very important to catch them young, train them, lead them, guide them, and mentor them because the times are indeed rough,” Prof. Ocquaye said.
Mr Ekow Egyir Dadson, the Director, Schools and Colleges Directorate, stated that since its inception in 2018, the SCP had reached over 70 educational institutions with countless testimonies of transformation.
“We began with the Presbyterian Boys Secondary School (PRESEC) Legon, and now in 2024, we have visited 74 schools and impacted the lives of over 100,000 students, some of whom were personally mentored and now have graduated from the universities.”
He explained that the SCP, a vision by FGBMFI Ghana, was a bold outreach programme designed to call young people to Christ, train and equip them for the future.
He cited testimony-sharing, mentorship, career guidance, entrepreneurship and counseling as some of the unique approaches to be used in reaching out to the targeted students.
Mr Emmanuel Baba Mahama, the National President of the FGBMFI Ghana, launched the SCP Manual, which would help the FGBMFI Zonal Family Chapters across Ghana in order to adopt schools and colleges within their catchment areas.
The Schools and Colleges project is making a great impact; we have had first-hand testimonies from school heads, teachers, and students (mentees) about the SCP. This project has come to stay, Mr Baba Mahama assured.
He, therefore, called for more volunteers and partners to help the SCP shape the next generation of leaders and citizens.
Findings by the FGBMFI revealed that Ghana’s senior high schools, colleges, and university students face growing challenges like addictions, indiscipline, poor academic performance, pornography, homosexuality, broken homes, and a lack of godly guidance.
That had been a concern to many parents and society, “but the FGBMFI believes there is hope to rescue and restore these young students,” Mr Mahama said. –GNA
