Francis Tomore Boi, a distinguished Tax Analyst, has voiced support for the government’s decision to impose taxes on the foreign incomes of resident Ghanaians as a strategic measure to counter the revenue deficit resulting from the discontinued VAT on electricity.
He hailed this as a savvy move by the government.
His endorsement comes in response to the government’s action to fill the revenue void left by the scrapped VAT on electricity through taxing the foreign incomes of resident Ghanaians. The government has expressed confidence that enforcing compliance with this tax will bridge the revenue gap.
In an interview with Eyewitness News on April 15, 2024, Mr. Tomore Boi underscored the potential efficacy of this tax policy, citing insights from the Commissioner General’s report issued in January.
The report revealed scrutiny of approximately 70,000 foreign accounts, amounting to nearly $3 billion.
“Yes, it is, because in January the Commissioner General announced that they have examined about 70,000 accounts and the amount in these foreign accounts is close to $3 billion and per their assessment, they have analyzed and they have raised about $1.6 billion on individuals who own those accounts. If they are able to collect these $1.6 billion, clearly it is going to be more than the projected revenue that was going to be raised from the VAT of household consumption,” he explained.
Addressing concerns regarding the implementation of this novel tax approach, Mr. Tomore Boi elucidated that the global exchange of financial information among over 160 tax authorities has made it increasingly challenging for individuals to evade taxes.
He cautioned that failure to disclose foreign income could result in severe penalties, including imprisonment, as tax evasion constitutes a criminal offense.
“Previously, accessing information was quite challenging, and individuals would often evade taxes when their activities couldn’t be detected. However, due to the exchange of financial information among over 160 tax authorities, if you fail to disclose your income and your information surfaces with any tax authority, such as the GRA, repercussions will follow. You cannot evade detection, and if found guilty of failing to disclose income, you will face sanctions, including imprisonment, as tax evasion is a criminal offense,” he emphasized.
