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14.05.2008 Business & Finance

IRA says extra classes’ money is taxable

By GNA
IRA says extra classes’ money is taxable
Ho, May 14, GNA - Income earned by teachers in both private and public schools from extra classes are liable to taxation, Mr William Charles Sefah-Agyebeng, Assistant Commissioner (Training) of the Internal Revenue Service (IRS), has said.
He said it was the responsibility of heads of schools under whose aegis the extra-tuition-for-fees were held to file tax returns on such extra incomes for tax assessment by the IRS.
Mr Sefah-Agyebeng was delivering a paper on "Your Tax Returns- A Fair Way of Assessing Your Income Tax'' at a seminar attended by about 130 proprietors of private basic and second cycle schools in the Volta Region in Ho on Tuesday.
He said public sector teachers and other public sector workers were not exempt from paying taxes on incomes earned from other jobs besides what they were paid from the consolidated fund.
The seminar was part of a series being held across the country to educate private school owners on procedures for filing tax returns, their obligations to the state and tax administration as it affected them.
Mr Sefah-Agyebeng said private schools as all other businesses were enjoined by statutory laws and the constitution to file accurate returns of transactions within stipulated time frames.
He said development levies, bookshops, extra classes, canteen and transportation services, rent from structures, Parent Teacher Association (PTA) dues and other cash and physical donations were also incomes that must be included in returns and not school fees alone.
Mr Sefah-Agyebeng said filing tax returns enabled the taxpayer to be fairly assessed for corporate and individual relief and also helped widen the tax net.
He said employers were required to furnish the Commissioner of the IRS with returns of their employees on specified Income Tax Forms on specified dates.
Mr Sefah-Agyebeng said these include notice of employee engagements and exits.
He said presenting false and misleading declarations, intentional deceptions, aiding and abetment attracted sanctions.
Mr Kwasi Oppong-Damoah, Volta Regional Director of the IRS, said taxes were paid only on profits and not when returns showed that losses were incurred.
The thrust of opinions, questions and suggestions during an open forum was that government should help private schools to grow into stronger businesses.
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