Demand Tax Clearance Certificates before renewing members’ licenses – GRA to Professional bodies

The Ghana Revenue Authority (GRA) wants the Governing Councils of Professional Bodies to demand Tax Clearance Certificates (TCCs) from their members before the renewal of their licenses.

According to the Ghana Revenue Authority (GRA), this is in line with the Revenue Administration Act, 2016 which enjoins Governing Councils of Professional Bodies to demand Tax Clearance Certificates (TCCs) from their members before renewing their professional practicing licenses.

REVENUE ADMINISTRATION ACT, 2016(Act 915)

According to the First Schedule, Part Two of the Act, Professional bodies are to make the demand of Tax Clearance Certificates a pre-requisite for the renewal of practicing licenses of members.

All Governing Councils of Professional Bodies such as lawyers, accountants, doctors, engineers, architects, and other professionals are therefore entreated to comply accordingly.

Additionally, the GRA is reminding the professional bodies that their failure to comply with the above provision is an offense punishable by law and will be strictly enforced by the Commissioner-General.

Background

Following the exposé by the Ghana Revenue Authority (GRA) last year to the effect that some sixty thousand (60,000) professionals working in the country, including lawyers, accountants, doctors, engineers, surveyors, architects, do not pay taxes, President Akufo-Addo advised persons evading taxes to move swiftly to regularise their tax affairs before the GRA moved to crack the whip.

Subsequently, in his keynote address delivered on Monday, September 13, 2021, at the 2021 Ghana Bar Conference at Bolgatanga in the Upper East Region, President Akufo-Addo noted “The record of lawyers in paying taxes has been historically poor. It is unfortunate, but a most unpleasant fact, that members of the professions in our country have not been known to set a good example when it comes to paying taxes. They appear to think that being members of the learned professions put them above complying with everyday civic duties, like paying taxes. It is embarrassing that lawyers are often at the top of the list of those who flout our tax laws, and use their expertise to avoid paying taxes,”.

Also, The Attorney General, Godfred Yeboah Dame speaking at the same Conference, suggested to the Bar to make the evidence of the fulfillment of tax obligation by lawyers, criteria for their good standing.

He bemoaned the mismatch between the luxurious lifestyles of lawyers and their tax-paying attitudes.

Further to the above, Mr. Dame noted that the professional and ethical training of lawyers places them in the position to play a fundamental role in the proper functioning of the Ghanaian tax system.

He, as a result, entreated lawyers to have sufficient knowledge of the Tax laws and statutory regulations and be abreast with the various amendments to the various laws to advise clients effectively.

Moreover, The AG bemoaned the fact that many lawyers are caught in the act of tax evasion through their unjustified acts of trying to avoid being captured in the tax net by not disclosing their real income.

“Sad to say, many lawyers are caught in the phenomenon of tax evasion as they unjustifiably avoid being caught in the tax net either by understanding their profits or concealing their true income,” he noted.

Mr. Dame also reminded lawyers of the fact that their failure to honor their tax obligation is not only criminal but borders also on a gross violation of the Legal Professional Conduct and Etiquette. Therefore he called on lawyers to do the needful by honoring their fullest tax obligation.