The idea for the identification cards was to give businesses TIN under the E-government project to make tax collecting and payment easy and also to prevent multiple registrations as well as to bring onboard individuals who avoid tax.
To achieve this, the exercise has been divided into three different categories, which clients could register or re-register with the 11 pilot sites of GRA or GRD head office, after which they would be given new Tax Identification Number (TIN) and new certificate.
The first phase of the exercise would concentrate on companies, business, partners and subsidiaries in the Greater Accra Region.
The new system, according to the Project Manager of GRA E-governance, Paul Kwakye, would enable individuals and organizations to register and re-register their businesses without any delays, whiles at the same time register for Tax.
Mr. Kwakye told participants at a seminar in Accra that tax agencies such as the Value Added Tax (VAT) Service, Internal Revenue Service (IRS) and Customs Excise and Preventive Service (CEPS) formerly give businesses tax identification numbers without asking for picture ID cards of the business owners, but that has created room for people to do multiple registrations in order to avoid paying tax.
He explained that the current system gives opportunity to individuals to use different names to represent separate businesses and acquire multiple TINs, and select the name and TIN to use based on the circumstances.
"Some of these businesses present very good books to the banks and financial institutions when they need loans, but when it comes to paying tax they present very bad books to the tax collection agencies, using a different name and TIN, while also having different TIN and names for clearing goods at the ports," he said.
The project manager added that the new system would totally seal all loopholes because local business owners would be required to use their identification, while foreigners would be required to present their passports, "the authenticity of those numbers could be verified at the issuing authorities through an automated system."
He noted that the new system would ensure that the top 20% of businesses which provided 80% of the National Tax Revenue paid the right level of taxes, adding that the non-formal sector businesses would also be roped in along the way, through very well structured strategies under the new system.
To make tax collection more effective and efficient, tax payers have been segmented into three categories, with those having a turnover of GH ¢5 million and above considered as Large taxpayer.
The Large taxpayers include upstream and midstream petroleum companies, Banking institutions, Insurance companies and mining companies, except quarries and so on, depending on their turnover.
The second category is Medium Taxpayers are those who falls above and between GH ¢90,000 and GH ¢5 million while those with a turnover lower than the VAT threshold of GH ¢90, 000 are in the lower class
Deputy Commissioner in charge of Modernisation at GRA, Mr. Samson A. Laryea Hammond noted that the GRA has successfully integrated the administration and operations of VAT Service, IRS and CEPS to create a one-stop-shop for tax payment for businesses.
He said the integration has one Commissioner-General who oversees the operations of the three organisations, while other divisions as been well structured for individuals to access all the three agencies at the same time.
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Autor(en)/Author(s): Bernice Bessey
Quelle/Source: AllAfrica, 29.11.2011
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