Source: newsthemegh.com
The Ghana Revenue Authority (GRA) is putting up a spirited defense, according to the Chamber for Local Governance (ChaLoG), purportedly to justify using a state entity as a ruse to conceal a private company’s illegal takeover of the collection of property rate taxes from Metropolitan/Municipal/District Assemblies (MMDAs).
Given that the GRA is the official government agency responsible for collecting property rate taxes, ChaLoG added, the following questions scream for an immediate response from the GRA: “Does the GRA regard MMDAs to be government agencies?
Is the money the GRA claims to be collecting for the MMDAs considered government money? Which government account is receiving the collections after the allotted 48 hours have passed? Why is the GRA violating the GRA Act, 2009 (Act 791), which gives it no rights over 3%, by taking 30% of the MMDAs’ commissions? The contract requiring the GRA to take over the collection of Property Rate Taxes from the MMDAs was signed with which local government agency?
“Was a General Assembly Resolution adopted by the 261 MMDAs requiring that entity to sign any contract transferring property rate tax collection to the GRA required? Is the myassembly.gov.gh Account owned by the government or a commercial business? If it is a government account, why did the GRA transfer the funds from the myassembly.gov.gh account to the account of a private business so that they may be sent to the MMDAs?
Why would the GRA provide the account to ratepayers for government funds to be placed into it and maintained there for longer than 48 hours if it belonged to a private company? Why was the alleged 70% share for the MMDAs transmitted to them through a private company’s account rather than the designated receiving account, myassembly.gov.gh?
“Considering that these funds are or were government funding, why did the Private Company deduct its 30% Commission at source before transferring the alleged 70% to the MMDAs? Why did the Private Company’s transfers to the MMDAs, which served as proof of their 70% ownership, not include the complete amount of money collected in each of the MMDAs?
The Ghana Revenue Authority Act, 2009 (Act 791) specifically specifies how the Authority is to handle the income it collects on behalf of the government, according to ChaLoG.
The Financial Administration Act of 2003 (Act 654) shall be followed when depositing income received by the Authority under this Act into the Consolidated Fund, according to Section 21(1). The Authority shall retain no more than three percent of the net yearly revenue obtained, according to paragraph 21(2).
The Public Financial Management Regulations, 2019 (L.I 2378) specifically state in Section 37 (1) regarding the payments of revenues collected that “GRA and other covered entities shall ensure that tax and non-tax revenues and other moneys owed to the Ghana Revenue Authority and other covered entities received, are within forty-eight hours, paid into designated government Accounts.”
“ChaLoG’s independent investigations have shown that the GRA is merely being utilized as a front for a private firm and is not the actual organization collecting property rate taxes, as had been previously believed.
“As if that were not enough, the GRA is also conspiring with the private enterprise to keep government cash longer than the required 48 hours in violation of the Financial Management Regulations, 2019 (L.I 2378) and the Financial Administration Act, 2003 (Act 654).
“ChaloG further contends that even if the Ghana Revenue Authority’s (GRA’s) claim to be the entity collecting property rate taxes is to be believed, they will still be violating Section 21 of the Ghana Revenue Authority Act, 2009 (Act 791) which forbids them from keeping more than 3% of the public funds they collect.”