GRA To Ensure Tax Compliance With TIN Law Enforcement

By January next year, the Ghana Revenue Authority (GRA) has announced it will begin rolling out a new policy which will see Ghanaian tax evaders denied access to passports, driver’s licenses and visas.

The introduction of the new policy follows the implementation of the revised tax law – 2015 tax Act.

Ghanaians are therefore advised to get a tax-payer identification number (TIN) so as to be able to renew or acquire new passports, drivers’ licenses or even secure visas.

The announcement of this new tax policy has angered many citizens. Some taxpayers have described the move as a misplaced one.

The introduction of the new tax policy is in a quest to widen the tax bracket as a way of raking in more revenues for infrastructure development, several Ghanaians have expressed mixed reactions over a number of these new policies in the country.

The Taxpayer Identification Numbering System (TIN) under the (TIN ACT) is described as a unique Identification Number issued to taxpayers for official transactions with the under listed public institutions. These are: the Domestic Tax Revenue Division, the Customs Division the Controller and Accountant General's Department of the Ghana Revenue Authority; the Registrar General's Department; District Assemblies and any Public Institution which the Minister may by legislative Instrument prescribe.

All persons liable to pay tax, or from whom taxes are withheld at source by employers or agents through payroll deductions and /or other business transactions under any enactment are required to register for a TIN.

All person transacting a business with any of the listed public institutions specified above are obliged to quote their taxpayers identification number for purposes of identification on all official documents.

According to TIN Act, a person shall not be permitted to undertake the under listed activities without use of a TIN. They include: to clear any goods in commercial quantities from any port or factory; to register any title to land, interest in land or any document affecting land; and to obtain any Tax Clearance Certificate from the internal Revenue Service, Customs Excise and Preventive Service or the Value Added Tax Service.

The rest are: to obtain a Certificate to commence business or a business permit issued by the Registrar-General or a District Assembly; and to receive payment from the Controller and Accountant General or a District Assembly in respect of a contract for the supply of any goods or provision of any services.

One of the following documents are as well needed to be able to register for a TIN: Certificate or Letter of Business Registration; Copy of Valid Driver’s License; Copy of Valid Passport; Copy of Valid Voters ID; and Copy of Valid National ID. Meanwhile, the pending law enforce that without the TIN, a person cannot obtain the above stated documents.

The soon to be rolled tax policy makes every tax payer identified and captured on the GRA database and as well for ensuring effective and universal tax compliance in the country.