GRA to audit lawyer's firm after suing AG and GRA over passenger baggage duty exemptions

The Ghana Revenue Authority (GRA) has notified the law firm of legal practitioner Jonathan A. Alua of a tax audit covering the period 2023 to 2025, days after he initiated a legal challenge against the authority and the Attorney-General at the Supreme Court.

The audit notice, contained in a September 9 letter from the GRA, comes against the backdrop of Mr Alua’s challenge to the powers of the GRA Commissioner-General under the Exemptions Regulations, 2025 (L.I. 2514).

Mr Alua’s case before the Supreme Court questions the constitutional validity of Regulation 18(2)(b) of L.I. 2514, particularly the authority it gives the Commissioner-General in matters concerning the waiver or variation of taxes.

The legal practitioner argues that the provision permits the Commissioner-General to waive or vary taxes without obtaining prior approval from Parliament.

The timing of the GRA’s audit notice has attracted attention because it was issued approximately one week after Mr Alua filed the case at the Supreme Court.

In its letter, however, the GRA said the selection of the law firm for the audit was made pursuant to its mandate under the tax laws and cautioned against interpreting the exercise as evidence of any wrongdoing.

“This is to inform you that your company has been selected for audit under the provisions of the Tax Laws for the periods 2023-2025. We would like to assure you that this exercise does not suggest you have done anything wrong,” the letter read in part.

The Supreme Court case centres on a broader constitutional issue concerning the exercise of taxation and exemption-related powers by administrative authorities.

Mr Alua is seeking a declaration that Regulation 18(2)(b) of the Exemptions Regulations, 2025 (L.I. 2514) is unconstitutional, arguing that the powers conferred on the Commissioner-General encroach on Parliament’s authority over taxation.

The case therefore places before the Supreme Court the question of whether an administrative authority can exercise powers to waive or vary taxes and grant exemptions without parliamentary approval.