The Ghana Revenue Authority (GRA) is advising multinational companies contesting the imposition of the ‘back tax’ penalties to use internal systems designed to address the issues of tax dispute.
The authority in recent exercise imposed ‘back tax’ penalties on MTN, Tullow, Goldfields and Kosmos Energy. The companies have all indicated their positions to contest the claims by the GRA.
But answering some questions sent to the GRA by Joy Business, the authority said the companies have the right under the GRA Law to object to the tax imposition, after which the GRA will determine the case in 30 days.
If not satisfied, the authority insists the companies can appeal to the Independent Tax Appeals Board after making 30 percent payment of the surcharged back tax.
“We at the GRA welcome the decisions by some of the multinational companies to contest the back-tax penalties imposed on them. The law allows such remedies through layers of appeal to the GRA”, a source at the GRA told Joy Business.
Per the law, companies that appeal to the Independent Tax Appeals Board are required to make 30 percent payment of the taxes imposed on them.
Background
The GRA in a special auditing exercise has asked some multinational companies to pay millions of dollars in back taxes.
Gold Fields Ltd., Kosmos Energy Ltd. Tullow Oil and MTN Group Ltd were directed to pay back taxes. MTN was asked to pay $773 million while Tullow as ordered to pay $300 million.
It is not clear the fines imposed on Gold Fields and Kosmos.
Source: Joy Business