Hon. Patrick Boamah, the Member of Parliament for Okaikwei Central, is calling for an urgent review of Ghana’s tax audit and penalty systems to prevent businesses from collapsing under “disproportionately burdensome” liabilities.
Mr. Boamah has specifically petitioned the Minister of Finance to reform the Revenue Administration Act, 2016 (Act 915) to address what he describes as a “Revenue-Penalty Trap”.
According to him Interest rates can reach up to 125% of the Bank of Ghana’s Monetary Policy Rate with monthly compounding interest and its retrospective application from the original tax due date often leading to liabilities that far exceed the principal tax owed.
Mr. Boamah highlighted reports of some tax enforcement officers harassing firms and discreetly extorting money from struggling companies.
He advocated for urgent policy and legislative changes to Act 915 to ensure the system is fair and sustainable.
He also argued that implementing technology-driven “faceless audits” will reduce human contact and potential for extortion.
He urged the Tax Administrator to promote regular, proactive audits to detect errors early, which would naturally reduce penalties and encourage compliance as well as abolishing the practice of Ghana Revenue Authority (GRA) officers sitting in shops for months to observe sales, which is seen as disruptive to trade.
