For many reasons, individuals might find themselves in a situation where they cannot provide the funds to make a diligent payment. Tax services will get a notification that some payment needs to be made.
Luckily, there are situations where tax debt relief might come into play. When you think about tax debt relief, don’t think paying your taxes can be avoided. It’s more of a strategy to be used to pay less or to delay payment.
There are a great number of tax debt relief companies on the market. Their goal is to help you pay your taxes accordingly, whether your situation could be regarded as an emergency or a mistake on your part.
When Is Tax Debt Relief Necessary?
Tax debt relief intervenes when an individual claims they cannot pay their taxes. People can be late in payment or can’t provide financially for various reasons, but being late for tax payments can come at a high cost. According to the Ghana Revenue Authority (GRA), consequences for default on tax payments vary according to the amount you owe and how you came to find yourself in that situation.
Indeed, there’s a great difference between someone actively trying to hide his assets and someone who didn’t manage to pay his tax payments on time. Every situation should be regarded as an individual case. That’s why professionals in tax debt relief can assist people according to their situation.
However, there are a fair amount of warning signs before your situation could get out of hand. You will often receive a letter from your government asking you to take action regarding your taxes. Sometimes, a representative of the GRA might come to your place if previous communication needs to be answered.
Remember, you still have a chance to make it right, especially if you find yourself in a situation where you can only provide for your basic needs. It’s also important to note that you must pay taxes, regardless of the work provided by a tax debt relief agency.
Who Can Benefit From Tax Relief in Ghana?
Personal tax relief is a gesture made by the government to reduce a person's tax burden due to their family or financial situation. This aims to reduce the bill, but not make it disappear. The relief represents a certain sum deducted from the final tax payment bill.
A few selected categories can file for personal tax relief: Marriage/ responsibility relief, child education relief, disability relief, old age relief and aged-dependent relative relief.
Other forms of relief apply, such as educational relief (if you find yourself back in training and cannot provide financially for the duration of your training). Mortgage relief applies only to one building, considered your private residence.
How to Apply for Personal Tax Relief as a Ghana Resident?
You can freely apply for Personal Tax Relief by filling out this unique form on the GRA website. Please note that Personal Tax Relief differs from Tax Debt Relief, as it’s open to every citizen interested in paying less taxes due to their current situation. Your employer needs to fill out this form. Therefore, you need to have a job or any training when you fill it out.
Companies Specialised in Tax Debt Relief
A tax debt relief agency is usually one of your last resorts if you’re late on your tax payment or if you have filled your taxes incorrectly so that the amount of taxes you owe doesn’t reflect the reality of your asset.
A tax debt relief agency will study your case, considering every aspect of your situation, and will work with your local Revenue Bureau to come to a fair conclusion of your case. This kind of service comes with a fee for their services, depending on your liabilities.
While it represents an investment, seeking service from a debt relief agency might give you the edge as they will study your case without prejudice and find a way to get you out of a bad tax situation. It’s also useful, as doing so will avoid a legal case that could linger on for years and potentially harm your financial health.
What Can a Tax Debt Relief Agency Do for You?
A tax debt relief agency will work closely with the Ghana Revenue Authority to examine your case and determine how much and how you will have to pay. There are three main kinds of settlements when dealing with a tax payment.
You might have to go through an instalment plan that will schedule your debt in separate monthly instalments. Penalty waivers can also help so you don't have to pay for interest charges and penalties.
Finally, a debt compromise might be pronounced if you face an obvious impossibility to provide for yourself. However, debt compromise is the last resort in this kind of case.
#FeaturedBy: Bazoom Publication.