As tax season approaches, businesses and individuals alike are reminded of the importance of filing their tax returns on time. Failing to do so can lead to penalties and interest charges. This month is a crucial time for filing tax returns in Ghana.
The Importance of Filing Tax Returns
According to Mr. Victor Akogo, Chief Revenue Officer-Domestic Tax Revenue Division, GRA, filing tax returns on time is a fundamental duty. This helps individuals and businesses avoid penalties and unnecessary interest charges. By doing so, they also gain access to personal reliefs such as marriage relief and child education reliefs, which are available to those who file their returns correctly and on time.
The Consequences of Not Filing Tax Returns
- Missing out on benefits of tax filing, such as personal reliefs like marriage relief and child education reliefs
- Paying penalties and interest charges
- Facing strict enforcement and penalties, particularly for online businesses that fail to register, file returns, and pay taxes
GRA has been running the ‘Tax and Good Governance Month’ initiative to remind taxpayers of their obligations and encourage them to file their tax returns on time. This month is chosen for the campaign because it is a crucial time when all individuals and entities that have earned income must submit their tax returns. By law, all taxpayers are required to file their tax returns on or before April 30th every year.
Benefits of Proper Tax Filing
Some of the benefits of proper tax filing include:
- Access to personal reliefs such as marriage relief and child education reliefs
- Ability to pay taxes owed on time
- Reduction in penalties and interest charges
- Potential refund for overpaid taxes
According to Mr. Akogo, the company is not only enforcing the law but also seeking to educate taxpayers on the importance of proper tax filing. He advised that many people misunderstand the filing deadlines, especially when due dates fall on weekends or holidays. He encouraged them to always file before these dates.
The Online Self-Service System
The GRA has moved to an online self-service system via the www.taxpayerportal.com platform, allowing people to file their returns from anywhere without visiting its offices physically. With this system, taxpayers can file their tax returns and access their tax statements online.
“Today, by the click of a button, you can file your tax return online. Whether you earned income from employment, business or investment, you must file,” said Mr. Akogo. He emphasized that anyone who has received income is required to report it to the company.
The E-commerce Department
The GRA has an e-commerce department that monitors businesses operating online. Those who fail to register, file their returns, and pay taxes will face strict enforcement and penalties. Mr. Akogo warned that those who have not filed their taxes in past years are encouraged to use the Special Voluntary Disclosure Programme to regularise their status and potentially have penalties waived.
The GRA is running several activities across the country as part of the Tax and Good Governance Month. These include tax clinics, stakeholder engagements, webinars and education campaigns at regional offices, malls such as the Accra Mall and Teshie Mall, and other public places. These events aim to educate people about their tax obligations and assist them in filing correctly.
The Duty to Disclose Income
“It is a taxpayer’s duty under Article 41J of the 1992 Constitution to honestly disclose their income to the appropriate authority, which is the GRA, and pay the taxes due,” said Mr. Akogo. This duty is a fundamental aspect of tax filing and helps to ensure that individuals and businesses contribute to the nation’s economy.
A Taxpayer’s Responsibility
Mr. Akogo explained that a tax return is simply a declaration of income earned, whether from employment, business or investment. Anyone who has received income is required to report it to the company. He encouraged taxpayers who have overpaid their taxes to apply for refunds, emphasizing that refunds can be obtained within 90 days after proper assessment.
The GRA’s Online Platform
The GRA has developed an online platform that allows taxpayers to file their returns and access their tax statements online. The platform is accessible from anywhere and allows taxpayers to file their returns from the comfort of their own homes.
Special Voluntary Disclosure Programme
“Those who have not filed their taxes in past years are encouraged to use the Special Voluntary Disclosure Programme to regularise their status and potentially have penalties waived,” said Mr. Akogo. This programme allows taxpayers to voluntarily disclose their unfiled tax returns and may be eligible for a waiver of penalties.
Taxes as the Lifeblood of the Nation
Taxes are the lifeblood of the nation. By filing your tax returns honestly and on time, you are helping build a better Ghana for us all,” said Mr. Akogo.