Ghana’s Crackdown on Financial Crimes: The Penalties for Tax Infractions

The Government of Ghana has taken a firm stance against financial crimes by imposing strict penalties for non-compliance with tax laws and regulations. In this article, we’ll explore the consequences of various tax offenses.

Consequences for Tax Offenses

Failing to Maintain Proper Documents

• Neglecting to keep proper documentation: 75% of the tax attributed to that period as a penalty
• Less deliberate cases: The lesser of 75% of the tax or 250 currency points as a fine

Omitted Tax Return

• Failure to submit a tax return: 500 currency points as a fine
• Continued oversight: 10 currency points per day as an additional penalty

Unpaid Communications Service Tax

• Neglecting to pay the Communications Service Tax: 2,000 currency points as a penalty
• Persisting failure: An additional 500 currency points per day

Late Submission of Tax Returns

• Failure to submit within four months: The Commissioner-General may bring legal action

Misleading Statements or Omissions

• Providing false information: Penalty equivalent to 100% of the tax shortfall without reasonable excuse
• Less severe cases: A fine ranging from five to 50 penalty units

Unauthorized Tax Collection

• Attempting to collect taxes without authorization: Double the amount collected or the attempt amount, depending on the circumstances

Aiding and Abetting Tax Offenses

• Knowingly assisting another person in committing a tax offense: 100% of the tax shortfall or the underpayment of tax

Failure to Comply with Tax Laws

• When a specific penalty is not established: A fine ranging from 1,000 to 2,500 penalty units or imprisonment for up to five years

Failure to Register

• Penalty for failing to register: Two times the tax payable and a fine of 1,000 penalty units
• Commissioner-General’s authority: Forfeiting any goods used for the business

Missed Tax Deadlines

• Failing to pay on time when owed is less than 2,000 currency points: 200 fine units or three months’ imprisonment
• Other cases: A fine ranging from 200 to 1,000 penalty units or up to one year in prison

Impeding Tax Administration

• Fraud or undue force: Fine equal to twice the attempted evasion or recovery and imprisonment up to four years
• Less severe infractions: A fine between 10 and 200 penalty units or one to three years in jail, forfeiting any goods used in the crime

Inflicting Harm on Tax Officers

• Intentional harm, such as shooting or causing bodily harm: Imprisonment up to twenty years

By understanding the consequences of these tax infractions, we can encourage tax compliance and contribute to Ghana’s economic development.