New bill to improve tax collection laid before parliament
Government is seeking to pass a bill that will allow for exchange of information on tax activities of business owners who work abroad and also operate in Ghana.
The bill which is known as the Standard for Automatic Exchange of Financial Account Information has been laid before parliament.
Speaking to Citi Business News, the Chairman of the Finance Committee of parliament Dr. Mark Assibey-Yeboah explained that the law when passed will improve revenue collection through tax compliance.
He explained that “It is an act to implement the common reporting standard approved by the council of the Organization for Economic Co-operation and Development (OECD) to designate the Commissioner General as the competent authority to ensure an improved international tax compliance by imposing on financial institution an obligation to report information regarding certain financial accounts of an individual or an entity to the GRA”. Dr. Assibey-Yeboah stated that the exchange of information will also help check issues of tax evasion.
“So if I hold an account in the US by passing this law, we can write to the tax authorities in the US to furnish us with the account details of a Ghanaian.
In the same way by passing this, if there is a foreigner who has an account here and foreign authorities want to find out, they can also write to us and we will furnish them with the information,” he said.
He maintained that the law is crucial in blocking any efforts to conceal information that may enable the Ghana Revenue Authority (GRA) collect the right taxes.