Accra: The Ghana Revenue Authority (GRA) has repeatedly highlighted revenue shortfalls caused by individuals and businesses failing to meet their tax obligations. This challenge, known as tax non-compliance, undermines the government's ability to mobilise funds for infrastructure, social services, and national development.
According to Ghana Web, tax compliance means filing returns and paying taxes accurately and on time, in line with Ghana's tax laws. Any activity carried out in Ghana, or partly in Ghana, that involves supplying goods or services for value is considered taxable. In simple terms, every Ghanaian has a responsibility to pay taxes. While the system used to be rigid and inconvenient in the past, the GRA has introduced reforms that make tax payments easier, including digital platforms and mobile money integration.
Failure to file returns, report earnings, calculate taxes correctly, or pay on time constitutes non-compliance. This is an offence under Ghanaian law and can attract fines, penalties, or even prosecution. One of the biggest challenges is Ghana's large informal sector, where many businesses and individuals operate outside the tax net. To address this, the GRA is expanding its systems, strengthening enforcement, and broadening the tax base.
Practical steps to ensure tax compliance include registering businesses with the GRA to obtain a Tax Identification Number (TIN), filing returns on time, maintaining accurate records, and preparing for audits. VAT compliance remains a significant issue, with Ghana facing a 60% VAT gap, meaning only 40% of potential VAT revenue is collected.
The GRA has introduced new measures to enhance compliance, including the e-invoicing system, mobile money integration for convenient tax payments, and plans to monitor digital transactions like cryptocurrency to prevent tax evasion. The authority is also broadening enforcement efforts to capture more businesses in the informal sector.
Tax compliance is not just a legal obligation; it is a civic duty. Taxes fund roads, schools, hospitals, and other essential services. By paying taxes, individuals and businesses contribute to national development and help build the Ghana they want to see. Insights were drawn from a speech by the Acting Commissioner of the Domestic Tax Revenue Division at the Ghana Revenue Authority, Dr Martin Kobil Yamborigya, at the M¶venpick Accra Business Forum.