The Ghana Revenue Authority is urging businesses to strengthen record-keeping practices as part of efforts to improve tax compliance and enhance domestic revenue mobilisation.
Mr Prosper Kwaku Gozah, Assistant Commissioner and Office Manager of GRA in Tema, said maintaining accurate financial records was essential for businesses to avoid excessive tax assessments and penalties.
He challenged the widespread perception that proper documentation automatically results in higher tax obligations, explaining that the opposite is often the case.
According to him, when businesses fail to keep reliable records, the Authority is forced to apply the “best judgement” approach in determining tax liabilities. This method relies on estimates such as business size, stock levels, and location, which can lead to higher tax assessments than what may actually be due.
Mr Gozah noted that proper record-keeping serves as a safeguard for taxpayers, ensuring that assessments are based on verifiable data.
He added that businesses that record losses could be exempt from paying income tax for a given period, provided their financial statements are accurate and validated.
He further highlighted the role of sound financial documentation in business growth, particularly in accessing credit from financial institutions. Lenders, he said, rely heavily on credible financial records to assess risk and determine eligibility for loans.
Addressing concerns about tax administration, Mr Gozah described the Authority as a development partner rather than an enforcement body alone.
He encouraged businesses facing financial constraints to engage proactively with GRA, noting that flexible payment arrangements, including instalment plans, are available to compliant taxpayers.
He cautioned that failure to meet tax obligations could result in the accumulation of interest, penalties, and possible legal action, which could disrupt business operations and increase financial strain.
Mr Gozah reiterated that voluntary compliance remains central to Ghana’s fiscal stability, stressing that improved tax participation by businesses is critical to funding public services and sustaining economic development.
