The Commissioners of the Revenue Agencies (IRS, CEPS, and VATS) announce for the information of ALL CORPORATE BODIES and the general public the details of a general one-off amnesty on penalties and sanctions for self disclosures as contained in the 2006 Budget Statement.

(i) VOLUNTARY INFORMATION LEADING TO RECOVERY OF TAXES

Any person who voluntarily discloses to any of the Revenue Agencies (that is, IRS, CEPS, VATS) information on his/her tax affairs leading to payment of tax or additional tax arising from tax evasion or avoidance, false and wrong declaration on taxable activities / services or dutiable goods shall NOT be prosecuted or penalized under any of the relevant tax laws administered by the revenue agencies when the tax is paid.

(ii) CAPITALIZATION OF PROFITS BY BANKS To assist banks licensed by the Bank of Ghana under the Banking Act, 2004 (Act 673) to comply with its prudential requirements, especially with respect to capitalization of profits, the following reliefs are granted: Any bank which transfers any amount from its Income Surplus Account to its Stated Capital Account by way of capitalization of profits in compliance with the capitalization requirements of Bank of Ghana shall NOT be liable for payment of any tax, duties or fees in respect of such revaluation under any enactment for the time being in force

(iii) RE-VALUATION OF ASSETS BY BANKS Any bank which revalues its assets to increase its capital base during the amnesty period shall NOT be liable to pay any tax, duty or fees in respect of such revaluation under any enactment for the time being in force.

(iv) CAPITALIZATION OF PROFITS BY LIMITED LIABILITY COMPANIES Any Limited Liability Company which transfers any amount from its Income Surplus Account to its Stated Capital Account by way of capitalization of profits shall NOT be liable for payment of any tax, duties or fees in respect only of such capitalization under any enactment for the time being in force.

(v) RE-VALUATION OF ASSETS BY LIMITED LIABILITY COMPANIES Any company which revalues its assets to increase its capital base during the amnesty period shall NOT be liable to pay any tax, duty or fees in respect of such revaluation under any enactment for the time being in force.

(vi) SCOPE OF AMNESTY (a) This amnesty covers all activities/services on or dutiable goods which were not reported or were under-reported for tax purposes at any time up to 31st December, 2005.

(b) This amnesty shall not affect any other obligation or liability to tax existing or incurred before or after 1st January, 2006.

(c) This amnesty shall NOT apply to any information obtained by any of the Revenue Agencies through their own efforts by way of tax audit, investigations, monitoring and any other means in the course of their duties.

(vii) PERIOD OF AMNESTY: 1ST JANUARY, 2006 – 30TH JUNE, 2006 Corporate Bodies, Limited Liability Companies, Self Employed Persons, and the general public are to note that the amnesty granted is a one-off opportunity. This amnesty is for a period of six (6) months from 1st January, 2006 to 30th June, 2006.

(viii) GUIDELINES ON TAX AMNESTY
1. Self-Disclosure

a. Persons making self-disclosures should summit the information in writing, or complete relevant tax return forms to the Commissioner
b. The Information/Tax Return Forms should be signed by the person or an authorized representative.

2. Capitalization of Income Surplus

a. Companies intending to capitalize income surplus should inform the Commissioner in writing. This should be accompanied by Audited Accounts ending in the year 2005 and beyond but not later than 30th June, 2006.

b. The information provided should include the following:-

i. The amount to be transferred from Income Surplus to Stated Capital

ii. The balance on the Income Surplus Account

iii. Stated Capital

iv. Shareholding structure of the companies

c. Transfers shall not exceed the balance on the Income Surplus Account.

3. Re-valuation of Assets

a. Companies intending to capitalize reserves arising from revaluation of assets should inform the Commissioner in writing.

b. The information provided should include the following:

i. Capital Surplus

ii. The amount to be transferred from Capital Surplus to Stated Capital

iii. The balance on the Capital Surplus

iv. Stated Capital

v. Shareholding structure of the Company

c. The re-valuation should be certified by an accredited Valuer and / or Engineer.

The Revenue Agencies shall disregard any transfer which does not reflect the company’s true state of affairs.

Any person who fails to avail himself of this tax amnesty shall be subject to the imposition of penalties, sanctions and prosecution after 30th June, 2006.

The Revenue Agencies hereby appeal to the public to seize this life-time opportunity to avoid any embarrassment.

All Corporate Bodies and Individuals are advised to contact their local offices of the Internal Revenue Service; Customs, Excise and Preventive Service, and the Value Added Tax Service, for further details of what they must do to bring their tax matters on track during the six month window of opportunity afforded by the amnesty.

ISSUED BY:

THE EXECUTIVE SECRETARY

REVENUE AGENCIES GOVERNING BOARD

FOR THE MINISTER OF FINANCE AND ECONOMIC PLANNING

BE PATRIOTIC AND HELP GHANA GROW