The History and Role Of Ghana Revenue Authority(GRA)

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

COLLEGE OF ART AND BUILT ENVIRONMENT

DEPARTMENT OF PLANNING

                                   PL 151 FOUNDATION WORKSHOP 11

                                                      ASSIGMENT ONE

      AGENCIES AND PLANNED DEVELOPMENT (GHANA REVENUE AUTHORITY)

                                                     GROUP THREE (3)

 GROUP MEMBERS                                                                                            

NTIM FRANKLIN                                                                

COFFIE MICHELIN MAAME ADUTWUMWAA            

ABEL ANTWI                                                                                                    

SAM CHRISTOPHER                                                               

FLORENCE OFOSU ABURAM                                           

ASAMOAH YAW GYAMFI                                                                       

KAMBILE FRDERICKA                                                                                       

AMPONSAH AKYIAMAA YAA                                        

KAMINTA NA-AWALA PATIENCE                                  

WORKSHOP TUTORS

MR. JOSEPH EDUSEI

DR. (MRS) THERESAH Y.BAAH-ENNUMH

ASSISTED BY:

MISS VIVIAN YEBOAH

                 September, 2016

 This document is a brief history and role of the Ghana Revenue Authority which has it parent agency to be Ministry Of Finance.also the document is a group work (3) which was undertaken by first year development planning student ,as part of their semester work on the agency Ghana Revenue Authority.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Introduction

“Look and See”, the first assignment seeks to help students identify the physical changes, problems and its recommendations in a given geographical area that is, south eastern part of Ayigya.

In undertaking second assignment “landscape topography and settlement form a population was given to students to settle the population in an ecological zone (Coastal Savannah, Northern Savannah and High Forest zone). This advanced the students ability to allocate resources between settlements with communication lines such as roads linking them.

The third assignment “Environmental Notebook”, tasked students to observe predominant use of space and qualities of those spaces and understand the relationship between activities and spaces.

This assignment is to enable students get understanding of the various agencies that exist in the nation, the roles they perform and their importance to citizens.

 1.2 Objectives

The assignment aims at enabling students identify;

ü  The various agencies involved in planned development. (Government and Non-Governmental).

ü  Functions and roles of the agency/agencies.

ü  The interrelationships within the various departments in the agency.

ü  The interrelationship between the agency and other agencies.

1.3 Scope

1.3.1 Contextual Scope

 The contextual scope was to identify an agency involved in development in a specific sector of the economy.

1.3.2 Geographical Scope

The geographical scope is the Ghana Revenue Authority which is located at Adum, Small Tax Office (STO) in the Central Business District of Kumasi and is on the 16 Denkyemenaso Road, behind Ghana Telecom.

1.4   Methodology

For the success of this assignment, the following measures were employed to carry-out the task:

ü  The group made efforts to locate the agency.

ü  An interview guide was prepared to obtain our data. 

ü  Visits were made to the agency to conduct interviews with the Manager, Accountant and Public Relation Officer to gather required information.

ü  Internet research was also used to acquire information from the Board’s website.

ü  The data was then analysed and rationalise to obtain the substantive information.

ü  A technical report was then made.

ü  Summary of the contents of the report was made on bond sheets for oral presentation.

1.5    Expected Output

At the end of the assignment the group is expected to present graphics of the agency:  its structure, roles and functions, linkages and interrelationships, problems and prospects on bond sheets. The group is also expected to present one bound report of the assignment

 1.6 Skills Developed

On completion of the assignment, the group was enlightened on the use of schematic diagrams to depict organizational structure (Organogram), and how to use questionnaires and interview guides in seeking for information.

1.7 Limitation

The assembly found some questions too confidential to answer as a result of some past experiences with the media, but after explaining the nature of the assignment, some relevant information was given for the completion of this assignment.

Difficulties in preparing the interview guides and some technical ways to approach the authorities to collect the data, but after the assistant from senior course mates the questionnaire were prepared.

The assignment was time consuming; we had to go to the study agency a number of times before we could have an encounter with the authorities.

1.8 Organization of report

The report is organized into three chapters. Chapter one is about the general introduction of the report and the assignment. Chapter two gives a fair idea of the profile, the vision, mission, functions, responsibilities, and sources of funding and also the organizational structure of the Ghana Revenue Authority. Chapter three gives an insight on the linkages and collaborations that the department has with other external agencies and also internal units of the department that helps in the efficiency of the department. Chapter four, this chapter also tends to analyse the potentials, opportunity, constraints and challenges which are the POCC analyses.  

  

CHAPTER TWO

PROFILE OF THE GHANA REVENUE AUTHORITY

2.1 Introduction

This chapter gives an insight about the history, vision, mission, core values, strategies to realise mission, objectives, functions, responsibilities, day to day activities, organisation structures.

 2.2 Authority’s Profile

Official Name Year Established Head Office Number of Branches Branch in study Location Telephone numbers E-mail: Website

- - - - - - - -

Ghana Revenue Authority 2009 Nmai Djorm,East Legon extension 10 Regional Branches Ashanti Regional Branch Adum, Kumasi 030267501-10 info@gra.gov.gh www.gra.gov.gh

2.3 History

The Ghana Revenue Authority (GRA) was established by an Act of Parliament, Act 2009 (Act 791) merging the three revenue agencies that is the Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS), the Value Added Tax Service (VATS) and the Revenue Agencies Governing Board (RAGB) Secretariat into a single Authority for the administration of taxes and customs duties in the country. The Authority has core responsibility for integrating the management of Domestic Tax and Customs and integrate the Internal revenue service (IRS) and value Added Tax Service ( VATS) into domestic tax operations on functional line.

2.4 Legal Framework

 The Authority was formed under the Authority’s Act 791 in January 2009.

2.5 Vision

The Oxford Advanced Learner” s Dictionary defines vision as “the ability to think about or plan the future with great imagination and intelligence”. The vision of the Ghana Revenue Authority is to be a world class revenue administration recognised for professionalism, integrity and excellence.

2.6 Mission

The mission of the Ghana Revenue Authority is, “to mobilise revenue for national development in a transparent, fair, effective and efficient manner”.

2.7 Strategies to realise mission

The Authority’s strategies to achieve its vision and mission include

ü  Professional and friendly client service

ü  Promotion of voluntary compliance

ü  Application of modern technology

ü  Effective border protection

ü  A well trained, disciplined and highly motivated staff

2.8 Core Values

ü  Integrity and fairness in our service delivery

ü  Teamwork, innovation and professionalism are our hallmarks

2.9 Strategic Goals for 2015 – 2017

ü  Optimum revenue collection in a cost-effective manner.

ü  Responsive customer service.    

ü  Compliance with statutory non-revenue obligation.  

ü  A transparent tax environment to enhance voluntary compliance.

ü  A professional and credible organization.

2.10 Objectives

The objects of the Authority are to:

ü  Reduce administrative and tax compliance cost and provide better service to taxpayers;

ü  Promote efficient collection of revenue and the equitable distribution of tax burden and ensure greater transparency and integrity.

ü  Ensure greater accountability to Government for the professional management of tax administration;

ü  Improve information linkage and sharing of information among the Divisions of the Authority;

ü  Provide a one-stop service for taxpayers for the submission of returns and payment of taxes;

ü  Provide common tax procedures that enable tax payers to be governed by a single set of rules: and;

ü  Provide for other matters related to the improvement of revenue administration

2.11 Functions

.The Authority has been charged to perform the following functions:

ü  Assess and collect taxes, interest and penalties on taxes due to the Republic with optimum efficiency;

ü  Pay the amounts collected into the Consolidated Fund unless otherwise provided by this Act and other Acts;

ü  Promote tax compliance and tax education;

ü  Combat tax fraud and evasion and co-operate to that effect with other competent law enforcement agencies and revenue agencies in other countries;

ü   Advise District Assemblies on the assessment and collection of their revenue;

ü   Prepare and publish reports and statistics related to its revenue collection;

ü  Make recommendations to the Minister on revenue collection policy; and

ü   Perform any other function in relation to revenue as directed by the Minister or assigned to it under any other enactment.

2.12 Responsibilities

The Ghana Revenue Authority has been established to:

ü  Integrate Internal Revenue Service (IRS) and Value Added Tax Service (VATS) into domestic tax operations on functional lines.

ü  Integrate the management of Domestic Tax and Customs

ü  Modernise Domestic Tax and Customs operations through the review of processes and procedures with ICT as the backbone

ü  Reduced administrative and tax compliance cost

ü  Better service delivery

ü  Improved departmental information flow.

ü  Holistic approach to domestic tax and customs administration

ü  Enhanced revenue mobilisation

2.13 Levels of operation

Ghana Revenue Authority has three main divisions.

They are:

Custom Division (CD) 

The Customs Division is responsible for collection of Import Duty, Import VAT, Export Duty, Petroleum Tax, Import Excise and other taxes and also ensure the protection of revenue by preventing smuggling. This is done by physically patrolling the borders and other strategic points, examination of goods, and search of premises, as well as documents relating to the goods.

Division Tax Revenue Division (DTRD)

The division is charged with domestic tax administration.  As a division of the Ghana Revenue Authority, it is very strategic in the achievement of national goals. It is also headed by a commissioner who is responsible for the day-to-day running of the division, thus, to identify all tax payers, access the tax payers to taxes, collect taxes and levies such as income tax, corporate tax, and personal tax.

Support Services Division (SSD)

The Support Services Division (SSD) is responsible for Finance, Research Planning & Monitoring, Information Technology, Human Resources and Administration.

2.14 Day to Day Activities

Among the day to day activities of the Authority are;

ü  Issuance of Tax Payer Identification Number system (TIN)

ü  Application for Issuance of Tax Payer Identification Number system (TIN)

ü  Registration of TIN with One of the following: Certificate or Letter of Business Registration, Copy of Valid Driver’s License (picture page), Copy of Valid Passport (picture page), Copy of Valid Voters ID, Copy of Valid National ID

ü  A completed application form with one of the documents listed above has to be submitted to one of the under listed agencies: Registrar General's Department, Domestic Tax Revenue (Income Tax & VAT) Office, Custom Division Office, Large Taxpayer Unit (only for employees of large companies registered with the Unit)

ü  Issuance of certificate.

ü  Recording of taxes paid through checks

ü  Grouping of tax paid into various components.

ü  Responding to issues from the public related to tax administration.

ü  Advising the general public and the assembly on matters relating to tax administration

2.15 Organisational Structure

Figure 2.1. Organogram of Ghana Revenue Authority

Source: www.gra.gov.gh                                                  

2.15.1 Departments and Offices in Ghana Revenue Authority

The Act, 2009 (Act 791) established the GRA as a body corporate to replace domestic Tax Revenue, Custom services and Support services.

The authority is headed by Commissioner General who is responsible and accountable for the Ghana Revenue Authority Board and the Ministry of Finance. Under the commissioner General consist of offices of Deputy Commissioner’s,

ü  Deputy Commissioner (Audit internal)

ü  Deputy Commissioner (Internal Affairs)

ü  Deputy Commissioner (Board and Secretariat, Communications)

ü  Deputy Commissioner (Public Affairs), and

ü  Deputy Commissioner (Modernisation Program Office).

Under the General Commissioner is found of three Commissioners who report directly to the Commissioner General

ü   Commissioner (Domestic Tax Revenue),

ü  Commissioner (Custom)

ü  And Commissioner (Support Services) who report to the General Commissioner.

The commission (Domestic Tax Revenue), is made up four Deputy Commissioners

ü  Deputy Commissioner (large Tax Offices)

ü  Deputy Commissioner (Medium Tax Offices)

ü  Deputy Commissioner (Small Tax Offices)

ü  Deputy Commissioner (Policy and Programs)

The commission (Customs) is made up of three Deputy Commissioners

ü  Deputy Commissioner (Operations)

ü  Deputy Commissioner (Preventive)

ü  Deputy Commissioner (Policy and Programs)

The commission (Support Services) is made up of five Deputy Commissioners

ü  Deputy Commissioner (Finance)

ü  Deputy Commissioner (Administration)

ü   Deputy Commissioner (Research, Planning and Monitoring)

ü   Deputy Commissioner (Human Resource)

ü   Deputy Commissioner (Information Technology).

                                               

CHAPTER THREE

LINKAGES AND COLLABORATIONS

3.1 1ntroduction

This chapter tends to give an insight on the internal departmental relationships and external relationships with other departments or agencies are discussed in this chapter.

3.2 Intra departmental relationships

The intra departmental relationships of the Ghana Revenue Authority give an insight about the linkages that exist between units of the department. It tends to discuss the various functions of these units that help in the development and effectiveness of the department in order to achieve its goals and objectives. From the figure below, the units in the departments of the Authority are; Compliance, Enforcement and Debt Management (CEDM) Unit, Audit and Assessment (A&A) Unit and Tax Payer Service (TPS) unit.

ü  The Compliance, Enforcement and Debt Management (CEDM) Unit is responsible for going out to look stores and following up of individuals who are in debt of tax.

ü  The Audit and Assessment (A&A) Unit is responsible for the auditing, assessing of Tax Payer’s files and report writing.

ü  The Tax Payer Service (TPS) unit is responsible for making enquiries for Tax Payers before they start with their tax registration forms.

Figure 3.1 Showing the Intra Departmental Relationships

Source: Group’s construct 2016

3.3 Inter departmental relationships

The Inter departmental relationships gives an over view of the relationships that the Ghana Revenue Authority has with other external agencies. This gives the functions that these agencies perform to help the Ghana Revenue Authority in achieving their objectives.

From the figure below, the external agencies or organizations that help the department in carrying out its functions are indicated in the boxes, Ghana Revenue Authority interacts with other developmental agencies in its quest to perform its functions. A cordial relationship exists between Ghana Revenue Authority and a number of developmental agencies. A few of them are considered below:

ü  Ministry of Finance,

ü  Registrar Generals Department,

ü  Bank of Ghana

ü  Kumasi Metropolitan Assembly.

ü  The Media

ü  Ghana free zone Board

ü  Ghana institution of Taxation

ü  Ghana Chamber of Mines

3.3.1 Ministry of Finance

Ghana Revenue Authority has a close linkage with Ministry of finance, which is its parent agency. The Authority make recommendations to the Minister on revenue collection policy.

 The ministry of finance set budget to be achieved by various division under the Ghana revenue authority which is added to the national budget.

3.3.2 Registrar Generals Department

Also, Ghana revenue Authority interacts with the Registrar Generals Department to issued Identification Number to taxpayers for official transactions and also issue a Certificate to commence business. This approves the plans of Ghana Revenue Authority, hence a close linkage.

3.3.3 Bank of Ghana

 Similarly, Ghana Revenue Authority as part of its functions has to generate revenue for the Government, The Authority interacts with Bank of Ghana to withdraw payments made by Tax Payers on Bank Cheques.

3.3.4 Kumasi Metropolitan Assembly

 Also the authority interacts with the Kumasi Metropolitan Assembly (KMA) to advise the Assembly on the assessment and collection of their revenue.

3.3.5 The Media

Finally, the Ghana Revenue Authority relates with the media to ensure that they are always updated to the nation about upcoming projects and the general status of the agency.

3.3.6 Ghana free zone Board

The board helps Ghana Revenue Authority to generate revenue through the Establishment of Export Processing Zones (EPZs)

3.3.7 Ghana Institute of Taxation

The Ghana Institute of Taxation Provides Ghana Revenue Authority with tax Professionals to help in the administration of taxation in the country.

3.3.8 Ghana Chamber of Mines

 The role of the Ghana Revenue Authority (Domestic Tax Revenue Division) in the mining sector includes the collection of corporate taxes, mineral royalty and capital gains tax. this revenue generated are used for undertaking developmental project in the country.

  

Figure 3.2 Inter- Institutional Relationship

Source: Group Three Research 

3.4 ongoing Projects by Ghana Revenue Authority

The Ghana Revenue Authority has projects that are embarked on a yearly basis. Some of the ongoing projects are as follows;

ü  The modernisation of single window programme

ü  Recruitment of jobs

ü  Large tax Payer education seminar

ü  Training programme for the Awards of custom proficiency certificate

ü  Payment of withholding taxes

3.5 Source of Funding.

The sources of funding for the Ghana Revenue Authority are;

ü  Moneys approved by Parliament.

ü  Fees for services rendered by the Authority,

ü  Loans, grants or subsides approved by the Minister of Finance, and

ü  Any other moneys that may be received by or made available to the authority for the purpose of performing its functions.

  

                                                 CHAPTER FOUR

           POTENTIAL, OPPORTUNITIES, CONSTRAINTS AND CHALLENGES

4.1 Introduction

This chapter is an assessment of the company’s potentials, opportunities, constraints and challenges. It is concluded after recommendations are made by the group.

4.2 POCC analysis

The POCC analysis light on the potentials, constraints, challenges, opportunities, achievements, among others of the Authority. Potentials refer to factors; advantages and resources (within the Authority), which when utilized can enable the Authority to enhance its sustained socio-economic development or to overcome its challenges.

Opportunities are external factors that positively influence development in the country.

By Constraints we mean, they are disadvantages emanating from internal factors such as institutional, human and physical resources that act against development.

Challenges may be external factors or obstacles that may hamper smooth development effort

Achievement is something that somebody has succeeded in doing, usually with effort and Recommendations are suggestion as to how best an existing problem can be solve

Table 4.1 showing the Potential, Opportunity, Constraints, and Challenges of GRA.

POTENTIALS	OPPORTUNITIES	CONSTRAINTS	CHALLENGES
ü Bye – laws ü Committed and hardworking staff with the necessary qualities to give in all their best. ü Relates to the public and stakeholders in a professional way thereby improving the image of the Authority. ü Existence of training Institutions	ü  Gaining Government support for the department through the modernization of the single window project. ü  Gaining of local and international support for the planning and implementation of the department’s projects. ü  National and Sectoral Policies ü  Extension of tax base net ü  Car loans ü  Housing and landed property loans	ü Inadequate working materials. ü Inadequate funds for workers ü Inadequate training and upgrading of personnel ü Inadequate working personnel ü Lack of motivation ü Difficulty in revenue collection	ü Insufficient release of funds ü Delays in payments of tax by some tax payers ü Lack of political will to enforce tax laws. ü Tax evasion

Source; Group’s Construct 2016

4.3 Achievements

 The Ghana Revenue Authority meets at least once every three months

 Among the achievements of the Ghana Revenue Authority are;

ü  The extension of tax base net: the authority has been able to extend it tax base net to get a lot of tax payers into the tax net.

ü  Tax education

ü  Manuel for imports and Exports

4.4 Recommendations

Based on the challenges and problems noted, it is recommended that;

ü  There is the need for the government to provide infrastructure and logistics needed for the department’s efficiency and effective management.

ü  Adequate working materials must be made available for the department.

ü  Hardworking staff should be given more incentives and rewards.

4.5 Conclusion

The Assignment, Agencies and Planned Development is aimed at making students identify various agencies involved in the development of the country, identifying the functions, organizational structure, source of funding, intra-relationships within the agency and inter-relationships with other agencies, and identifying problems and suggesting policy measures to the problems identified.