The Government Director of Inexperienced Tax Youth Africa, Benaiah Nii Addo, has sounded the alarm over Ghana’s actual property sector turning into a conduit for Illicit Monetary Flows (IFFs), with consumers utilizing giant sums of untraceable money to amass properties whereas bypassing the banking system and tax laws.
Illicit Monetary Flows are unlawful actions of cash or capital from one nation to a different, typically to evade taxes, launder cash, or disguise wealth.
It may contain felony actions similar to drug trafficking, smuggling and commerce mis-invoicing.
He has warned that weak enforcement and regulatory gaps have been enabling cash laundering and depriving the nation of crucial income.
Talking at a two-day capacity-building workshop for journalists on IFFs and progressive taxation, Mr Addo highlighted the failure to implement present monetary insurance policies, notably in actual property, multinationwide retail operations, and the casual economic system, stressing that these loopholes have been fueling economic losses.
He highlighted obtrusive gaps in enforcement and regulatory oversight, notably inside sectors similar to actual property, multinational retail operations, and the casual economic system.
Once more, he known as on the government to urgently regulate property transactions to reinforce transparency and accountability, whereas additionally strengthening the nation’s tax administration and enforcement
mechanisms.
Mr Addo criticised multinational corporations working in Ghana for tax evasion and the unchecked repatriation of earnings.
“These corporations typically repatriate all their earnings with out paying taxes, just like the shell corporations. Their solely curiosity is making profits,” he pressured.
He additional pointed to the misuse of tax incentives below the banner of company social accountability (CSR), calling for a regulatory framework to judge CSR initiatives. “CSR is voluntary and largely unregulated in Ghana. Whereas corporations declare to assist native communities, there isn’t any framework to watch or consider these initiatives,” he famous.
“We should be sure that CSR initiatives are aligned with the tax exemptions corporations take pleasure in,” he added.
Mr Addo additionally praised Ghana’s digital monetary ecosystem—especially throughout the public sector the place digital wage funds are actually commonplace—however stated enforcement should prolong to personal enterprises.
He beneficial standardised digital receipts and stricter monitoring for multinational supermarkets and retail chains to assist monitor taxable gross sales.
Pertaining to the casual economic system, he pressured the necessity to simplify on-line tax submitting methods so as to increase compliance.
“Individuals have smartphones however don’t know find out how to use them to file taxes. That’s an issue.”
“We have to convey tax education to the markets—to the merchants and casual staff. Equipping them with data is vital,” he defined.
Mr Addo argued that equity and accountability have been important to rising tax compliance.
“Individuals need to see their taxes at work—constructing roads, markets, colleges, and hospitals,” he stated.
“When residents see the outcomes, they’re extra keen to pay.”
He endorsed a progressive tax system the place the rich pay greater than the poor, stating, “Many people need to comply, however when the system seems skewed in favour of the wealthy, it turns into a disincentive.”
Mr Addo additionally known as for the efficient use of funds generated from the Communication Service Tax (CST) to create jobs.
“This tax was imagined to create employment. Authorities should make sure the funds are used to generate jobs so extra persons are introduced in,” he indicated.
FROM KINGSLEY E. HOPE
