GRA Cracks Down on Tax Evasion Amid Rising Non-Compliance
The Ghana Revenue Authority (GRA) has intensified its nationwide tax compliance and enforcement operations, cracking down on taxpayers who fail to meet their obligations. Assistant Commissioner in Charge of Accra Area Enforcement, Joseph Annan Adjeikwei, announced the move in response to growing levels of non-compliance.
Mr. Annan revealed a concerning trend of taxpayers filing returns simply to avoid penalties, without actually making the required payments. Others have ceased filing altogether despite continuing to operate, while some are deliberately under-declaring their income.
“For some time now, we relaxed our enforcement mandate to encourage voluntary compliance through education. But we realised many taxpayers are taking advantage of the system. They file but do not pay, they under-declare, or they stop filing altogether,” he stated during a press briefing in Accra.
Following an assessment in early 2024, the Authority found the scale of infractions necessitated increased manpower. As a result, additional officers were deployed nationwide from November to bolster checks and ensure strict adherence to tax laws.
The GRA’s strengthened enforcement includes arrests and potential prosecutions, depending on the severity of the offence. These operations are being conducted around the clock, covering all tax types – Personal Income Tax (PIT), Corporate Income Tax (CIT), Value Added Tax (VAT), excise duties, and Communications Service Tax (CST).
Mr. Annan emphasized the GRA’s commitment to enforcing the law, stating, “No tax system can function effectively without consequences for offenders. If one person violates the law and walks free, others will follow. Our message is simple: we are out there, and taxpayers must do the right thing.”
He appealed to the media to assist in educating the public about these ongoing operations, describing them as a regular and sustained feature of the GRA’s national mandate. “You never know when we will visit your business, and this programme is not ending anytime soon,” he added.
Regarding last year’s enforcement activities targeting non-compliant foreign businesses, Mr. Annan explained that prosecutions were not pursued as it was the Authority’s first major operation of its kind. Amnesty was granted, but all outstanding taxes were required to be settled.
However, this year’s operations will be significantly stricter, particularly after months of public awareness campaigns. Taxpayers who continue to disregard the law, despite repeated notices, will be considered delinquent and face the full force of the law.
While quantifying the exact revenue losses proved difficult due to the widespread non-compliance, Mr. Annan confirmed the losses were substantial. He noted that some taxpayers already acknowledge owing millions of cedis based on their own declarations, even before any audits are conducted.
“It will not be scientific to put out a figure now, but what we can say for sure is that the nation is losing so much. And this is from only a small sample of businesses we have visited,” he said.
The Authority aims to mobilise over GH₵30 billion this month, partly to recoup shortfalls from previous months. Mr. Annan assured the public that enforcement will remain a core component of the GRA’s daily operations as it strives to enhance revenue collection and improve overall compliance.
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