The Chamber of Commerce and Industry France Ghana (CCIFG) in collaboration with KPMG, has organised Tax System Business Breakfast to update members of the Chamber on the country’s tax reforms in Accra.
The event attended by over seventy members of the Chamber was facilitated by a team from KPMG; a firm of Chartered Accountants.
The facilitators were Gordon Dardey; Deputy Manager, Michael Boateng; Manager, and Kofi Frempong-Kore; Partner, all in the Tax Unit of KPMG.
Mr. Kofi Frempong-Kore, Tax Unit, KPMG, Gordon Dardey, Deputy Manager and Michael Kofi Boateng, Manager all from KPMG enlightened participants on the principle of modified taxation as well as changes in the withholding tax laws and its impacts.
Participants were also updated in the personal income tax rates stating that the highest income tax rate has been increased from 25% to 35% on persons earning income above GHS10, 000 monthly or GHS120, 000 per annum.
Mr Dardey, further discussed taxation of business and investment income highlighting on current tax provisions on capital allowance under operating and finance lease, accelerated capital allowance benefits for taxpayers under excise duty, carry over of losses and repairs and improvement of depreciable assets among others. Tax exemption on interests was also addressed.
Mr Michael Boateng who spoke about the concept of Transfer Pricing, highlighted the key areas for compliance. In his presentation, he explained the need to take transfer pricing documentation seriously, as Ghana Revenue Authority (GRA) in recent times has increased its drive towards transfer pricing audits resulting in huge tax liabilities for non-compliance.
He referred to a 2016 report from the Tax Justice Network that estimated an annual approximate loss of US$2 billion to Africa due to abuses of Transfer Pricing Principles. The tax authorities of this conscious, will not relent on their efforts to rake in some revenues in this space.
Mr. Boateng further explained issues around technology transfer agreements and the need for their registration with the Ghana Investment Promotion Centre (GIPC)
Concluding the session, Mr Frempong-Kore presented results from a KPMG survey conducted on businesses on the impacts of changes in tax legislation on their businesses. He also touched on the new VAT regime and explained to taxpayers what they need to take into consideration in complying with the new updates.
The breakfast meeting was the second event organised by CCIFG with KPMG this year to help both its members and non-members become abreast of the changes in Ghana’s tax system.