Businesses advised to honour tax obligations
By Isaac AIDOO, Accra
Tax expert and Deputy Managing partner at Ali-Nakyea & Associates Mr Ishmael Ibn Ibrahim has advised businesses, especially foreign owned businesses to strive to meet their tax obligations in order not have any brushes with the law.
Mr Ibrahim urged the businesses to ensure that they comply with the tax laws in-country, plan their taxes properly so they achieve tax efficiency.
The tax expert was speaking at a business seminar organized by OmniBSIC Bank for Chinese businesses in Accra.
The tax expert stressed the importance of navigating and complying with the tax laws, achieve tax efficiency but ensure businesses are not paying more taxes than they should, in the form of incurring penalties and interests.
Mr Ibrahim advised the Chinese businesses to keep proper records and take advantage of extensions to file their tax returns.
“It is important to keep proper records; if you don’t keep good records how do you justify your expenses ; then also you have an extension of time to file returns, you have an extension of time to pay taxes ,” Mr Ibrahim stressed.
He wondered , “if you find yourself in a position where you are unable to file your return on time or pay your tax on time why don’t you apply for an extension rather than sit and wait for the GRA to come after you ; if you find yourself in a profit-making position, and you have sitting assets you need in your business, why not use the money to buy the assets so that you are able to take capital allowance , reduce your chargeable income and pay minimum taxes rather than just sit and give all your money to the government.”
The tax expert maintained that at the end of the day it was a cycle that would benefit both government and the tax payer, since businesses are able to ply their trade, and are able to pay the right amount of taxes.
Touching on the rationale behind the seminar, Executive Director and Chief Operating Officer of OmniBSIC Bank, Dr Philip Oti-Mensah said the idea was to form a strong, long term relationship with Chinese businesses.
“China means business and for a country or an economy like ours, instead of seeing them as people are coming to take business away from us, we choose to see it differently, we see them as a people who have the potential to support our economy,” Dr Oti-Mensah stated.
