TAX INFORMATION - FILING TAX RETURNS

i) It is a statutory obligation
ii) It enables the Commissioner to ascertain the correct tax liability of a person for a
particular year of assessment.
iii) It helps the individual taxpayer to claim personal reliefs viz marriage/responsibility
child education, old age, disability reliefs etc.
iv) It enables a person engaged in business to claim capital allowances on business
assets other than stock in trade.
v) It also helps a person who earns a business or investment income to claim allowable
expenses.
vi) It may encourage tax consciousness, good citizenship and voluntary payment of
taxes to avoid penalties.

FURNISHING OF RETURN OF INCOME

Any person engaged in business shall furnish a return of income for a year of assessment not later than 4 months after the end of a basis period ending within the year.

The return of income shall be in the form and manner prescribed by the Commissioner, and state the information required. Examples of the return forms are Income Tax Form 21 for Individuals, Income Tax Form 21A for Employees with employment income only, Income Tax Form 22 for Partnerships and Income Tax Form 22A for Companies.

The return shall include a declaration that it is complete and accurate and it shall be signed by the person making it.

A person carrying on a business shall in addition to the return of Income furnish a separate statement of income and expenditure and a statement of assets and liabilities for each business undertaking carried on within that business. If for instance a person owns a shop, hotel and transport businesses he is expected to prepare separate accounts for each of the business undertakings.

Where a person has a basis period that is different from the year of assessment, a return of Income shall be filed by the last day of the fourth month following the end of the basis period. For example, if a person has a basis period ending on 30th June, that person’s return for the year of assessment in which his twelve months end must be furnished by 31st October.

The Commissioner is empowered under the Internal Revenue Act 2000, Act 592, in certain circumstances, to require a person or his trustee, as the case may be, to furnish a return for a period less than twelve months. The Commissioner may exercise this power when a person dies, becomes bankrupt, is wound-up, or goes into liquidation, is about to leave Ghana indefinitely or is about to cease activity in Ghana or the Commissioner otherwise considers it appropriate.

Where a person fails to furnish a return, the Commissioner may by notice in writing appoint an agent to prepare and furnish the return on behalf of that person.

CASES WHERE RETURN OF INCOME IS NOT REQUIRED

Unless the Commissioner has requested otherwise by notice in writing, the following persons shall not furnish a return for a year of assessment.

a) A non-resident person who has not derived any income from Ghana during a basis
period ending within the year or where withholding tax which is a final tax is charged
on payments made to that person.

b) A resident individual
i) who is an employee whose income for a year of assessment consist exclusively of
income from an employment.

ii) who has no chargeable income for the year or whose chargeable income for the
year is subject to the NIL rate of tax.

EXTENSION OF TIME TO FURNISH A RETURN OF INCOME

A person required to furnish a return of income may apply in writing to the Commissioner for an extension of time to furnish the return and the application must be made by the due date for furnishing the return.

Where an application is made and the Commissioner is satisfied that the person is unable to furnish the return by the due date because of that person’s absence from Ghana, sickness or other reasonable cause, the Commissioner may by notice in writing grant an extension of time for a period not exceeding two months.

If a person is dissatisfied with the Commissioner’s decision on the application for extension of time, that person can challenge the decision within 30 days in writing stating the precise grounds of the challenge.

However the granting of an extension of time for furnishing return does not alter the due date for payment of tax.

I. FILING OF TAX RETURNS FOR 2004 IN THE YEAR OF ASSESSMENT 2005.
II. EMPLOYERS TO FILE RETURNS ON BEHALF OF EMPLOYEES

Under Section 72 of the Internal Revenue Act 2000 (ACT 592), all self-employed persons and companies are required to file their income tax returns with the Internal Revenue Service by the end of the fourth (4th ) month after the end of their basis period.
Companies whose assessment year ended on 31st December, 2004, and all self-employed persons must therefore file their tax returns by 30th April, 2005.
Under Section 35 of Internal Revenue Regulations 2001 (L.I. 1675), all Employers are required to file returns on behalf of their employees for each year of assessment. Employers are therefore requested to file returns for all their employees on or before 30th April 2005, to ensure that their employees continue to enjoy their reliefs upfront.

IRS Head Office, Starlets '91 Road, (Opposite Accra Sports Stadium), P.O. Box 2202, Accra, Ghana. Tel: +233-(0)21 675701-10; Fax: +233-(0)21-664938. Email: info@irs.gov.gh and commissioner@irs.gov.gh

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