Osu Mto Orients Taxpayers On Self-Assessment

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Owusu Kuffour, Supervisor at Taxpayer Service Unit, Osu Medium Taxpayer Office (MTO)
Owusu Kuffour, Supervisor at Taxpayer Service Unit, Osu Medium Taxpayer Office (MTO)

The Osu Medium Taxpayers Office (MTO) have taken another bold step by adopting a service oriented attitude towards taxpayers through the introduction and education of self-Assessment where taxpayers will be allowed to forecast, estimate and assess his/ her tax obligations.

Owusu Kuffour, Supervisor at Taxpayer Service Unit, Osu Medium Taxpayer Office (MTO)
Owusu Kuffour, Supervisor at Taxpayer Service Unit, Osu Medium Taxpayer Office (MTO)

Under Self-Assessment, the taxpayers compute their own tax liabilities with limited or no intervention of tax officials unlike the system where Ghana has been practicing Administrative Assessment especially with Direct Taxes.

At the beginning of every year, a Provincial Assessments are raised and served on taxpayers but the situation was that a taxpayer may decide to object to the assessment and giving reasons for the objection and whiles the objection is determined then the taxpayer pays the tax determined on the objection.

If no objection is raised, then the assessment has to be paid on four quarterly installments and in other words, the tax is to be divided by four and paid equally on quarterly basis.

During a seminar for Taxpayers and consultants organized by Osu Medium Taxpayers Office (MTO), Kwasi Oppong Damoah, Assistant Commissioner, (MTO) said the Self-Assessment system relies on most taxpayers voluntarily complying with their basic obligations-register for tax.

He however noted for self-assessment to succeed, the tax administration must adopt service-oriented attitude towards taxpayers ensuring that they have the information and support and support they need at the right time to meet their obligations.

According to him, there is the need to invest adequately in the taxpayer service function and a clean taxpayer register.

Mr. Damoah added filing of returns and payment of taxes should be through means convenient to taxpayers by an Electronic filing system where payment through Bank without extra cost is to be considered.

He reiterated that collection and enforcement needs to be prompt and an adequate power to deal with non-payment and non-filing situations.

Meanwhile, he noted Tax administration will carry out risk-based audit procedures so as to verify that the taxpayer has compiled with the provisions of the tax laws.

Mr. Damoah pointed out that a system of penalties is needed for understatement of income tax liability based on the requirement that taxpayers exercise reasonable care.

He expressed worry that there are copious provisions for the imposition of interest and penalties, prosecuting offending taxpayers, attachment and seizure of property in their various tax laws but the implementation have been slow.

He also called on government to do their bid in the direction of automation to help the revenue institutions to give taxpayers easier platforms and convenience.

The Assistant Commissioner at MTO urged the taxpayers to take advantage of the Brochures, flyers, leaflets with targeted information to be well informed.

He urged MTO to create a Business Advisory Centers and websites where taxpayers can easily access information or send information through e-mail.

In an interview, Owusu Kuffour, Supervisor at Taxpayer Service Unit, Osu Medium Taxpayer Ofice said the forum was to enlighten taxpayers on the VAT Act, Act (A70) which is actually a refurbished of the former Act 506.

According to him, they released that there were less awareness about the rent tax hence the need to make a paradigm sheet from the ignorance to an informed taxpayer.

Actually, the self-Assessment practice was formerly and officially introduced into Direct Tax Administration by the Internal Revenue Act 2000, Act 592 under section 78 of Act 592.

Source:?Abubakari Seidu Ajarfor, Punch Newspaper

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