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Deputy Managing Partner for Ali-Nakyea and Associates, Ismail Ibn Ibrahim shared tips on how SMEs can manage their tax liabilities in a presentation on the\u00a0Citi Business Festival<\/strong> on-air series on Wednesday, June 8, 2022.<\/p>\n Ismail Ibrahim noted that\u00a0the tax conversation is a critical component of every business.<\/p>\n \u201cThis is because the GRA or the state is a de facto shareholder of the company, whether or not you make profits.\u201d<\/p>\n \u201cIt is therefore imperative for every business, no matter the size, to take tax issues seriously.\u201d<\/p>\n He shared the following tips on managing tax liabilities;<\/p>\n Ismail Ibrahim explained this as \u201cthe situation where you tell the GRA how much you anticipate in a year and how much tax you are supposed to pay.\u201d<\/p>\n \u201cFor example, if you anticipate a GH\u20b51,000 in a year and your tax liability is around GH\u20b5200, you could reduce your estimation because you need time value of money to say GH\u20b5150. That way, you will have an extra GH\u20b550.\u201d<\/p>\n He clarified that the point of this is not to overly underestimate \u201cbecause there is a penalty for underestimating tax to less than 90%. So you have to make sure you review it correctly.\u201d<\/p>\n \u201cYou are supposed to file your returns and pay your taxes at the time of return. If you anticipate you will not be able to have the money to pay the taxes, you can apply to the Commissioner for an extension of time within which to pay your tax or to file your return.\u201d<\/p>\n He noted that this opportunity is only offered to taxpayers who have proven to be compliant.<\/p>\n \u201cThe withholding tax is when you are paying for a service and your tax is withheld in advance for you. If you do not want to suffer this, you can apply for this tax. If you are a very compliant taxpayer, there is an opportunity for you to apply for an exemption from withholding tax that will allow you some cash flow,\u201d he added.<\/p>\n He noted that the first step in planning your taxes is tax compliance.<\/p>\n \u201cYou do not want to be mopped with interests and penalties for failing to pay your taxes.\u201d<\/p>\n \u201cYou need to arrange your affairs in such a way that you do not overly pay taxes. It is your responsibility to pay tax, but you are not obliged to pay tips on taxes.\u201d<\/p>\nMake self-estimate assessments<\/strong><\/h4>\n
Take advantage of the opportunity to apply for extensions\u00a0<\/strong><\/h4>\n
Take advantage of opportunity to apply for exemption from withholding tax<\/strong><\/h4>\n
Plan your taxes<\/strong><\/h4>\n