Assessing Ghana’s tax amnesty policy

The Ghana Revenue Authority recently expressed disappointment regarding the low participation of taxpayers in the country's tax amnesty policy. The authority described it as a missed opportunity for taxpayers to fulfil their tax obligations. William Demitia, a Senior Associate Consultant at Ali-Nakyea and Associates, shared his insights on the matter during a CNBC Africa interview. Demitia highlighted several key challenges faced by the tax amnesty policy and recommended potential solutions moving forward. One of the major issues raised by Demitia was the short nine-month period allocated for the tax amnesty. He suggested that the timeline was insufficient for proper education and awareness among taxpayers, leading to low participation rates. Demitia emphasized the need for a more extended deadline and ongoing education initiatives to enhance voluntary compliance. Additionally, concerns were raised regarding the apprehensions of taxpayers towards the legitimacy of the amnesty deal provided by the Ghana Revenue Authority. Demitia pointed out cases where taxpayers who applied for the amnesty were not granted the promised benefits, resulting in a lack of trust and reluctance to participate. He stressed the importance of transparency and clear communication to address taxpayer concerns and build confidence in the tax amnesty program. Despite the challenges faced by the tax authorities, Demitia cautioned against immediate enforcement actions and emphasized the need for targeted identification of non-compliant taxpayers. He underscored the significance of ongoing education and outreach efforts to encourage voluntary compliance rather than resorting to punitive measures. Demitia proposed a voluntary disclosure exercise without a strict deadline to allow taxpayers to regularize their tax affairs without fear of penalties or interests. By focusing on education, transparency, and extended timelines, Demitia believes that Ghana can improve its tax collection efforts and foster a culture of compliance. In conclusion, Demitia called for a strategic shift towards proactive education and an extended deadline for the tax amnesty policy to enhance taxpayer engagement and support voluntary compliance in the long run.