GRA reforms gain traction

Reforms at the Ghana Revenue Authority (GRA) have gained traction with the introduction of a new computerized system for administering domestic tax, the Total Revenue Integrated Processing System (TRIP), which will be rolled out in some piloted offices.

The TRIPS is an integrated revenue information system which will provide a platform for the administration of all domestic taxes under the e-Gov project.

As part of the reforms of the revenue administration, the GRA will be linked with the Registrar-General’s Department (RGD) electronically under the e-Gov. project to ensure that the GRA has access to the database of the RGD to access the details of registered businesses for easy tracking for tax purposes.

In connection with this, new Taxpayer Identification Numbers will be issued to registered businesses and individuals.

Anne Anipa, Public Relations Manager of the GRA speaking in Accra under the topic:

‘Enhancing Voluntary Compliance Through Rights and Obligations of Taxpayers’ said: “GRA’s integration is seriously on-course with the merger of the various revenue divisions.

“The key element of the reform process is the integration of the Domestic Tax Revenue Division (DTRD) offices, comprising the erstwhile Value Added Tax Service and the Internal Revenue Service (IRS), to enhance taxpayer convenience and also enable the staff to discharge their duties under the DTRD more effectively.

“This involves merging offices by co-locating staff of these erstwhile Revenue Agencies, movement of files of taxpayers, training of staff to perform on their schedules etc,” he said, adding that the Commission has identified nine offices within the Accra-Tema metropolis to serve as pilot sites for integration of DTRD offices.”

She said effective from the last quarter of 2011, the first pilot office on the Spintex road will be opened, while others at Adabraka, Tema, Agbogbloshie, among others will be opened towards the end of the year. The DTRD offices will also allow for the segmentation of taxpayers into large, medium and small.

Subsequently, other integrated offices will be rolled out in the Greater Accra region and countrywide.

She revealed that institutions with annual turnover of GH¢5 million and above as well as specialist industries, no matter the turnover, would be among the Large Taxpayers; with companies with turnover above GH¢90,000 but below GH¢5 million in the medium category, while the small taxpayers would include those with annual turnover of GH¢90,000 and below.

Meanwhile a staff team from the International Monetary Fund (IMF), led by Christina Daseking, commended the country’s tax reforms.

The team explained that the reforms which has impacted positively on the country’s fiscal performance during the first half of the year shows improvement in the tax revenue over the same period last year.

“A preliminary assessment of fiscal performance during the first half of the year shows strong improvements in tax revenues over the same period in 2010. It suggests that full-year fiscal targets are a chievable with continued control over expenditures.

The Authority recorded a 12.1 percent jump in half-year revenue for 2011 to GH¢3.9 billion, compared with GH¢3.5 billion for the same period last year.

The breakdown of the collection is as follows: Domestic Taxes (Direct Tax) recorded GH¢1.622.33 million, recording an excess of GH ¢150.17 million (10.2 percent). Indirect taxes recorded GH¢672.79 million, also showing an excess of ¢48.2million -- representing 7.7 percent.

Customs collection including petroleum also recorded GH¢ ¢1,633.93 million, an excess of GH¢ 224.56 -- representing 15.9 percent.