On 31st March, 2021 an act was passed by parliament and assented to by the president to allow a waiver of penalties and interest on tax owed. This was to give some financial relief to companies and help them settle their tax obligations. After the initial waiver ended, a further extension was granted to extend the deadline to 30th June, 2022. Although 44 days away from the date of this reminder, it is not too late to take advantage of this extension.
Who stands to benefit
- Anyone who is yet to register with GRA
- Anyone who has outstanding returns as at 31st December 2020 with GRA
- Anyone who has arrears with GRA as at 31st December 2020
- Anyone who has filed a wrong return as at 31st December 2020 with GRA
Scenarios
- Company A forgot to file PAYE returns for September 2019. The penalty payable if filed on 17/05/2022 is approximately GHS 10k. If this return is filed by 30th June 2022 and an application submitted in the right form, the penalty will be waived.
- A sole proprietorship, X Enterprise, was registered in November 2015 with the registrar general. However, it did not register with GRA due to inactivity. X Enterprise has now won a major contract and decides to register with GRA. The penalty payable for non-filing of returns up to December 2019 is approximately GHS 68k. Should an application be made in the right form by 30th June, 2022 this will be waived
- After a tax audit, company BB had a total liability payable of GHS 2m for periods up to December 2020. This consisted of GHS 1.3m principal, GHS 200k penalties and GHS 500k in interest. Should company BB submit an application in the right form and make payment before June 2022 or make the necessary arrangements to make payments, Interest and penalties of about GHS 700k will be waived.
How to take advantage
By 30th June 2022,
- File all outstanding/amended returns and submit a written application
- Pay or make the necessary arrangements to pay assessed and outstanding taxes
Should you need any help with taking advantage of this interest and penalty waiver, kindly contact me or any of my colleagues on the following details and we will be more than happy to help.
Phone Number : 030 295 8727
Email : info@elixiraudits.com
