Telecommunication Companies In The Country Must Meet Their Tax Obligations

A tax expert and President of the West Africa Union of Tax Institutes, Mike Kofi Afflu has called on telecommunications companies in the country to meet their tax obligations to the Ghana Revenue Authority(GRA).

He urged the telecommunications networks to pay taxes on the promotions they make in the country.

Explaining the tax responsibilities of the mobile service providers, he noted that the internal revenue law mandates the networks to pay tax whenever they make promotional offers to customers and so, called on the GRA to impel them to obey tax regulations.

Speaking to Radio Gold on Wednesday, he explained that “the winner is supposed to pay the tax. But where the promoter fails to ensure that the winner pays the tax on it, then the promoter will have to pay the tax.”

He also said religious entities in the country are also mandated by law to pay tax on the gifts they receive.

Though admitting that religious bodies such as churches may be non-profit making organizations, he however emphasized that it behooves them to pay 15% tax on any gift they receive, valued at GHC500.

“The law says that where an individual receives a taxable gift with the value in excess of 50 currency points, that is GHC500 because 1 currency point is GHC10 and so 50 currency points will give us 500 which is the old 5 million. So, if you receive a gift with value in excess of GHC 500, you are supposed to pay 15% tax on it as gift tax.”