tax

Overview of the Independent Tax Appeals Board (ITAP) Session

  • Introduction to the session:

    • Presenter welcomes participants and introduces key speakers: Executive Secretary of ITAP, Mr. Mohammed Naya, and Board Member, Mr. Theophilos Tamia.

  • Good news about ITAP:

    • ITAP established via an amendment to the Revenue Administration Act in 2020.

    • Purpose: Provide an appellate platform for taxpayers to appeal decisions made by the Commissioner General of the Ghana Revenue Authority (GRA).

Background Information on ITAP

  • Establishment and Functionality:

    • ITAP aims to create a fair and independent board to handle tax appeals.

    • Mr. Naya highlights that in 2025, ITAP was activated with published procedural rules.

    • Mandate under Section 43 of the act: to hear and determine taxpayer appeals against GRA decisions.

Current Status and Membership Composition of ITAP

  • Executive Secretary's update on ITAP's operations:

    • Procedural rules enacted: Necessary structures in place for ITAP to function.

    • ITAP to start accepting cases as of the current operational status.

  • Composition of the Board:

    • Chairperson: Must be a lawyer with at least ten years of tax practice.

    • Members: 2 representatives from the Institute of Chartered Accountants (IC Ghana), 2 women representatives from the private sector.

Process for Taxpayers - Making an Appeal

  • Key Steps for Taxpayers:

    1. Audit Decision: Taxpayer receives audit decision and has objected to it.

    2. Timing for Filing Appeal: Must file a notice of appeal within 30 days of receiving the decision.

    3. Filing Requirements:

    • Notice of appeal must include the objection decision and relevant documents.

    • Payment of any required fees (set by law).

    1. Notification Process:

    • After filing, ITAP is to notify the Commissioner General within 3 days, who then has 14 days to respond.

    • Upon receiving Commissioner’s response, ITAP will set a hearing date.

  • Importance of Adhering to Timelines:

    • To ensure cases are heard expeditiously, ITAP emphasizes the need for strict compliance with timelines.

  • Extension of Time Applications:

    • Taxpayers can apply for extensions to meet deadlines based on reasonable grounds.

    • Board's discretion to grant extensions based on individual circumstances.

Comparisons with Traditional Court Systems

  • Advantages of ITAP Over Court Systems:

    • ITAP is designed for efficiency, accessibility, and expertise in tax matters.

    • Legal expertise present on the board gives confidence to tax matters management.

    • ITAP operates with less formality, allowing taxpayers to represent themselves or use non-lawyer advocates.

Fee Structure and Payment Process

  • Payment Mechanisms:

    • Fees set by law; expected to be paid through bank transfers or electronically to avoid cash transactions at ITAP offices.

  • Previous Submissions by Companies:

    • Companies that submitted appeals before the enactment of new regulations are to refile in compliance with new LI.

    • Time limits for resubmission are frozen for these cases.

Alternative Dispute Resolution (ADR)

  • Section 41 of the Revenue Administration Act:

    • ITAP can adjourn cases for parties to attempt settlement, promoting an alternative resolution approach.

Summary of Key Regulatory Updates (VAT Reforms)

  • VAT Reforms Overview:

    • Changes in VAT legislation effective from January 2025, impacting rates and compliance obligations.

  • Important Highlights of Reforms:

    • Abolition of COVID Levy and address of cascading effects on VAT.

    • Introduction of substantial input tax deductions for businesses.

  • Changes in Registration Requirements:

    • Increased registration threshold for VAT from 200 to 750,000 Ghana Cedis for goods.

    • Services require immediate registration upon commencement (within 30 days).

Compliance and Reporting Responsibilities

  • Compliance aspects for taxpayers under the new VAT Act:

    • Returns to be filed monthly, compliance ensures that businesses do not incur penalties for late submission.

    • Ensured synchronization between VAT filings and timely communication with the Ghana Revenue Authority.

Final Thoughts and Recommendations

  • Importance of Understanding ITAP Procedures:

    • Taxpayers are encouraged to familiarize themselves with the rules to avoid procedural errors that may derail their appeals.

    • Suggested for taxpayers to seek professional tax advice to ensure compliance with ITAP processes and regulations.

  • Ongoing Developments:

    • Monitoring of the operational status and feedback from ITAP will continue as part of enhancing taxpayer engagement.

End of Session Remarks

  • Executive Secretary urges taxpayers to prepare adequately and utilize the ITAP system for tax disputes efficiently.

  • Session closes with acknowledgment of participants and expectations for continued engagement as ITAP operationalizes fully.