IRS targets GH ¢ 2.23b this year

The Internal Revenue Service (IRS) is projecting revenue collection of over GH¢2.235 billion for this year, 2010.

The Service exceeded its targetted revenue collection of GH¢1,554,542,500 for the 2009, representing an increase of 14.4 percent.

“If the trend continues the revenue gap of 14 percent will close up to manageable levels. Though the global credit crunch threatened low revenues, 2009 was a reasonably good year for the IRS,” explained, Major (rtd) Daniel Sowah Ablorh-Quarcoo, Commissioner of IRS, at a media briefing in Accra.

He emphasised that the projection for 2010 is ambitious, but with the automation exercise set for the year and the 10 percent rent tax to boost revenue mobilisation, the 2010 tax target is attainable.

“The Rent Tax which was introduced last year operated in Tema, Teshie, Nungua and Legon and is expected to be extended to other areas in the Accra Metropolis this year, targetting commercial property and all estates in future.”

Maj. (rtd) Ablorh-Quarcoo disclosed that government is partnering with a private company to undertake the automation exercise, which is expected to be completed within three years.

It will computerise the major business processes of registration, assessment, collection and accounts and will also network Greater Accra on Wide Area Network.

Available checks at the Registrar-Generals’ Department show that as at 2009 there are 226,760 self-employeds registered in the informal sector, but only 53,352 are registered with the IRS and are being assessed to tax.

With the completion of the automation system, it will help IRS expand the tax net to reach more people and will also improve efficiency in tax administration and enhance transparency.

Tax experts have opined that the national revenue agency has failed to achieve success in its revenue mobilisation efforts due to its manual system of operation.

The automated regime will trigger the ability to access information, release staff from desk-work to increase field audit capacity, increase in-house communication, avail information to the public, eliminate duplication and offer transparency.

It will as well improve data availability for efficient revenue forecast, impose standards across the service, intensify and make taxpayer education easy and accessible.

Maj. (rtd) Ablorh-Quarcoo urged taxpayers to comply with tax laws and cooperate with tax authorities for a good relationship between taxpayers and tax administrators.

“Private organisations must endeavour to fulfil their tax obligations, without which the tax burden will be on salaried workers alone,” he stressed.