Know The Country’s Tax Laws
– Dr Kwakye advises entrepreneurs
Story by: Raphael Nii Trebi Hammond
A SENIOR Lecturer at the University of Ghana Business School, Dr. Teddy Ossei Kwakye has advised entrepreneurs to equip themselves with a thorough understanding of the country’s tax laws. He emphasized that such knowledge is vital for taking full advantage of tax reliefs and avoiding costly mistakes.
Speaking on Business Breakfast on ZED, Dr. Ossei highlighted the significant opportunities entrepreneurs miss due to a lack of awareness about tax benefits embedded in Ghana’s tax system. “There are so many tax reliefs in our laws—marriage reliefs, educational reliefs, dependency reliefs, disability reliefs — but people don’t take advantage of them because they don’t know about them,” he stated.
He noted that entrepreneurs often fail to consider the tax implications of major decisions, such as selling a business, which can attract a capital gains tax. “When you sell your business, any gains you make are taxable. If you understand this, you’ll know how to approach such transactions,” he explained.
Dr. Ossei stressed that the dynamic nature of tax regulations requires constant vigilance. “Every year, there are changes to tax laws based on what is presented to Parliament. Entrepreneurs need to stay updated on these changes to avoid missing out on important adjustments,” he advised.
He also emphasized the importance of consulting tax experts to navigate these complexities. “If you don’t have the knowledge, you need to talk to experts. They can guide you on the available reliefs and the implications of decisions you make,” he said.
Dr. Ossei pointed out that proper record-keeping is a critical aspect of managing tax obligations effectively. He observed that many entrepreneurs struggle with tax planning due to poor documentation, which hinders their ability to take advantage of reliefs or comply with tax regulations.
In conclusion, Dr. Ossei called on entrepreneurs to be proactive in seeking tax knowledge and consulting professionals. He reiterated that understanding the tax system could help businesses save money, avoid penalties, and improve overall efficiency. His remarks aim to encourage business owners to see tax education as a key investment in the growth and sustainability of their ventures.
