Business News of Friday, 22 December 2017
Ghana risks being suspended from the Extractive Industries Transparency Initiative (EITI), an international organization which tracks countries’ management of revenues from the extractive industry.
Ghana, from 2015, has failed to submit to the international body its annual report on commitments, and the fight against corruption in the country’s gold, oil and gas sectors.
Information available to citifmonline.com suggests that government is pleading for a three-month extension to enable it put the reports together. The information also suggests that, Ghana has been struggling to access the necessary funding from the World Bank for the production of the reports, hence the delay.
According to the information, several assurances from the World Bank to release funding for the report have not yielded any positive results.
Government is also reportedly praying the EITI to allow it submit the report by March 2018.
The Extractive Industries Transparency Initiative is a global benchmark for the transparent and accountable management of extractive resources. It was launched in 2002 at the World Summit on Sustainable Development in Johannesburg, South Africa.
Ghana was among the initial wave of countries that acceded to the initiative, having signed on in 2003.
In 2010, Ghana went through an international validation and was adjudged EITI compliant.
In 2016, at the EITI Global Conference in Peru, Ghana was adjudged an exemplary country for using the EITI for wide ranging reforms in the mining, oil and gas sectors.
Ghana losing tax revenue to extractive sector over lack of data
The Ghana Revenue Authority in 2016 complained that, lack of adequate data on the operations of businesses in the extractive sector continues to impede the implementation of Ghana’s transfer pricing policy.
The Deputy Commissioner in charge of Policy Programs at the GRA at the time, Edward Gyamerah, said the issue made it difficult for GRA to fully assess operational costs quoted by the various companies for purposes of taxation.
“One of the major challenges facing the department has to do with data… we ask ourselves which data should taxpayers use in arriving at their arms-length prices. I do not think we have a data that the GRA is using or expects that once you do it within this; it will be an acceptable arms length price,” he stated.