Perhaps, The Ghana Revenue Authority (GRA) has audited you and hit you with an unexpected assessment. Or you have heard of other companies that GRA has audited and hit with surprising tax bills. The risk that GRA may hit you with an unforeseen tax is now a major concern for Ghanaian businesses. It is not enough to be concerned about the risk of unexpected taxes; you must do what you can to reduce the risk. In this article, we explain tax risks, how they arise and what you can do to reduce them. This article is a primer to whet your appetite to understand and manage tax risk. What are tax risks ..read more

Heard at a function I was at a professional accounting function recently. When the discussion turned to the youth, some comments were: As for the youth these days, they are something else. It’s like they know nothing. You must teach them basic things. They want to be a CFO at 25. They are unreliable. That made me wonder, is Gen Z as the views above portray them? Boomers were born from 1946 to 1964, Millennials were born from 1981 to 1996, and Gen Z was born after 1996. I am a Boomer; we think of ourselves as overcoming tough times, and hardworking. So, I won’t deny I have the Boomers’ prejud ..read more

SCG Chartered Accountants is an *ACCA Approved Employer. ACCA approved us for the “Gold” category which focuses on trainee development.  In this blog, I discuss our rationale for joining the scheme, what it enables us to do and some things we are doing to improve learning and development in the firm. We see our future as a multidisciplinary firm providing a range of services beyond audit and tax. So, we will look for programs that will enable us to execute our strategy. Our rationale  The professional accounting organisation one certifies with is an important career decision. T ..read more

I am Emefa Ledi, an aspiring data analyst. I joined the SCG Work Experience as an intern in the data analytics unit. In this article, I share my experience of work culture, adapting to the industry and career development at SCG.  About me Emefa Ledi I graduated from KNUST (Kwame Nkrumah University of Science and Technology) with a bachelor’s degree in computer science. After completing school, I worked as an IT (Information Technology) assistant at Nexans for my national service and moved on to two other roles with different organizations.  I applied to join in SCG in 2021, but I was ..read more

Part one of this article focused on common issues that arise from the VAT Tax Audits by the Ghana Revenue Authority (GRA). In the final part of the article, we discuss the taxpayers’ difficulties in complying with the Ghana VAT Law and recommend ways to deal with the difficulties. Challenges faced by taxpayers. Paying taxes in advance to GRA  The law requires that taxpayers must account for and pay VAT on an accrual basis. In simple terms, the laws say that once you make a sale, whether they have paid you, you must pay the VAT on the sale within 30 days. This requirement poses significa ..read more

The Ghana Revenue Authority uses tax audits to ensure compliance and to increase tax revenue. It carries out both comprehensive and desk audits. The GRA’s approach is to focus its audit efforts on high-risk areas where the risk of noncompliance is high. VAT is one of the high-risk areas in their scope.  In this article, we discuss some common VAT pitfalls that tax audits reveal, and challenges that cost taxpayers penalties and interest payments.  Common issues that arise from VAT Tax Audits. 1. Failure to register for VAT This issue is common to startups that have existed less than 3 ..read more

Before you close your financial books for the year, you must make sure that you filed all returns and paid all taxes due during the year. This could save you significant penalties. We’ve prepared this checklist to help you check your compliance and reduce the risk of incurring undue penalties. Do you have employees who do not have TIN or Social Security numbers? How did you handle payments to them? Note that you may have exposure to taxes, pension contributions, and penalties. Ensure you take steps to resolve this before you close your books. If you have not filed the disengagement form, do ..read more

An employment contract is a legal agreement between an employer and an employee that outlines the terms and conditions of their working relationship.  The contract protects both parties by setting clear expectations and obligations for each party. Whilst a contract can or verbal or in writing, we recommend you issue written contracts.  When drafting an employment contract, these are the minimum areas to cover. The contract may include other clauses, such as a probationary period, confidentiality, and performance expectations. You can draft a contract using the above, but a safer opt ..read more

The employer and employed both have responsibilities under the National Pensions Act, 2008 Act 766. If an employer does not comply with the Act, he can incur penalties and suffer a loss of reputation.  Employer’s obligation  Register with both SSNIT and a fund manager of his choice. Ensure all their employees registered with SSNIT. Deduct and pay contributions on their behalf.  Submit required returns and contributions at the end of every month.  Make pension payments not later than the 14th day of the following month as late payment will attract penalty ..read more

This blog answers common questions that people ask about tax audits. 1. What is a tax audit? A tax audit is an examination of a taxpayer’s financial records and tax returns by the GRA to ensure that the taxpayer has accurately reported their income, deductions, and credits and complied with tax laws and regulations. 2. Why is my company chosen for a tax audit? A tax audit can be triggered by taxpayer related red flags or GRA’s policies. Some taxpayer related red flags are:  Late or non-filing of tax returns, regular payment of penalties and interest. Consistently reporting of losses for ..read more