It is always unpleasant to receive a letter from the Ghana Revenue Authority (GRA) for the conduct of an audit, and most companies wish to avoid it. However, this is inevitable, and you need to improve your tax compliance to avert tax risk. Below we share our experience from the past eight years helping clients undergoing tax audits by the GRA.
Engage your tax consultant immediately
You need to communicate the development with your tax consultant, or your auditor if you do not have one. Section 18 of the Revenue Administration Act 2016 (Act 915) provides that only a person who is an approved tax consultant may:
- represent a taxpayer;
- provide advice primarily regarding the interpretation or effect of a tax law; or
- prepare a tax return, appeal or other document under a tax law.
A person who is not an approved tax consultant shall not represent that they are a tax consultant, or charge fees to offer assistance on those matters. These restrictions do not apply to a lawyer performing legal work in relation to a tax law.
Timing is everything
Your tax consultant will sign the power of attorney and engage the GRA team directly during the audit process and contestation. Do not bring in your consultant after the audit has been completed and a draft report issued. In our experience the GRA will often not entertain that, as it may be perceived as a strategy to delay conclusion of the audit.