IRS to go after churches

11.05.2009 LISTEN

The Internal Revenue Service (IRS) says it will get tough with religious bodies who do not comply with their tax obligations.

The Commissioner of IRS, Major Daniel Ablorh Quarcoo (Rtd.), told the Business & Financial Times in an interview that the decision was informed by the realisation that some religious bodies were abusing the tax exemptions offered them.

"Apart from the charitable work of some religious bodies which are considered to be public in character, some engage in profitable activities and incomes that accrue are taxable.

"Some religious organisations are taking advantage of the tax exemptions to cheat the nation."

Maj. Ablorh-Quarcoo said religious organisations engage in profitable business ventures like transport services, guest houses, farming activities and publishing businesses but are not paying tax and deprive the State of much-needed revenue.

This year the IRS will focus on religious organisations and their tax obligation; it has begun a comprehensive sensitisation programme to educate them on their tax obligation to the nation, he stated.

The Commissioner said the education will be replicated in all regions and major commercial cities and towns to assist the religious -bodies learn their tax obligation to the state.

"Religious bodies' compliance with their tax obligation will assist in the achievement of revenue mobilisation for the nation."

The Service will launch the rent income-tax next month, and all landlords and tenants have been directed to provide available information to ensure tax compliance.

This will enable the Service to develop a dedicated database for an effective monitoring system and enable the revenue agencies to perform their duties.

The IRS has targetted a revenue collection of close to GH¢2 billion for this year, 2009. "Enforcement of eight percent rent income tax and management of tax debtors will be intensified, these will be the strategic driving forces to be employed by the Service to achieve its revenue target for this year," Maj. Ablorh-Quarcoo stressed.