The Act also makes it more user-friendly, retains provisions that are peculiar to income tax administration.
The Revenue Administrative Bill, which will ensure tax compliance and improve revenue administration, is expected to be laid before parliament when Members of Parliament resume from break.
These measures will include the following: moving all processes to an electronic platform and accelerating the shift to a functional form of administration in all tax offices; review the current thresholds for the classification of firms as large, medium or small to reflect current trends; establish joint audit/investigation teams to conduct audits and investigations; intensify the monitoring of Free Zones Enterprises by rolling-out the Integrated Free Zones Unit in line with the 2nd GRA Strategic Plan 2015 -2017.
The Act also makes it more user-friendly, retains provisions that are peculiar to income tax administration, and also enhances efficiency and facilitates compliance while broadening the tax base -- removing the narrow and distorted tax base of the Internal Revenue Act 2000 (Act 592); thus rationalising, streamlining and restricting tax concessions in the country.
“Ghana’s problems seem to have been compounded by a direct tax act, the Internal Revenue Act 2000 Act, Act which was complex and nor user friendly. There is therefore the need to replace it with a new Act which takes into consideration international best practice.” Mrs. Mona Quartey said this at the official launching of the new Income Tax Act 2015, Act (896) which seeks to revise and consolidate the law relating to income tax and simplify provisions of the Act in December 2015.
“To be able to raise the required revenue, government must be able to enhance the main mission of tax administration, which is to collect the tax revenue due from taxpayers under the country’s tax laws without hindering private sector development,” she added.
“ It is in this light that l see the launch today as another means of letting our country men/women know the law that regulates the payment of tax from their hard income and need to honour their tax obligations. “
The measures will implement the Electronic Point of Sale project, and roll-out fully the excise tax stamp project.
The main responsibilities of the tax administration, Mrs Quartey explained, is to administer tax laws fairly and impartially and also minimise the cost and burden on taxpayers in complying with their tax obligations.
According to the 2016 budget statements, the new policy will focus on measures that will ensure tax compliance and improve revenue administration, rather than introduce new taxes.