Francis Tomore Boi, a renowned Tax Analyst, has endorsed the government’s initiative to tax the foreign incomes of resident Ghanaians as a strategic move to address the revenue shortfall resulting from the abandoned VAT on electricity.
He described this as a smart move by the government.
His comments are on the back of the government’s move to plug the revenue gap created as a result of the abandoned VAT on electricity with a tax on the foreign incomes of resident Ghanaians.
The government indicated that it is confident that ensuring compliance with the tax on foreign incomes will close the revenue gap.
In an interview with Eyewitness News on April 15, 2024, Mr Tomore Boi highlighted the potential of this tax policy by referencing the Commissioner General’s report from January.
The report disclosed the examination of approximately 70,000 foreign accounts, totalling nearly $3 billion.
“Yes, it is, because in January the Commissioner General announced that they have examined about 70,000 accounts and the amount in these foreign accounts is close to $3 billion and per their assessment, they have analysed and they have raised about $1.6billion on individuals who own those accounts. If they are able to collect these $1.6 billion, clearly it is going to be more than the projected revenue that was going to be raised from the VAT of household consumption,” he stated.
Addressing concerns about the implementation of this new tax approach, Mr Tomore Boi, explained that the global exchange of information among over 160 tax authorities has made it increasingly difficult for individuals to evade taxes.
He warned that failure to disclose foreign income could lead to severe penalties, including imprisonment, as tax evasion constitutes a criminal offence.
“Before, access to information was quite difficult and people would always evade tax when the activities cannot be found out. Now, because of the exchange of information where over 160 tax authorities are exchanging financial transactions about potential taxpayers, it looks like if you don’t come out and your information comes up to any of the tax authorities, in this case, GRA, they will invite you and the offence is going to go against you.
“You will not be able to evade and if they find out that you failed to disclose that income then you are going to impose those sanctions on you which will even include imprisonment because tax evasion is a crime,” he added.
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