Introduction
The Ghana Revenue Authority serves your client a notice of assessment, and the number looks wrong. What do you do, and how long do you have? The answer sits in the Revenue Administration Act, 2016 (Act 915), as amended by Act 1029, and it has been worth 8 to 10 marks in the ICAG Principles of Taxation paper in May 2020, May 2021, March 2023 and November 2024. In this guide we go through the types of assessment, the time limits, how to object and how to appeal.
What Is an Assessment?
Section 108 defines an assessment as “a determination of the amount of tax liability made under a tax law, whether by the Commissioner-General or by way of self-assessment”. It comes in these forms:
- Self-assessment: the taxpayer files a return and computes the tax.
- Commissioner-General’s assessment (s.37): made where a person fails to file on time (best judgment and information reasonably available), or where a self-assessment is adjusted.
- Pre-emptive assessment (s.38): used where revenue is at risk, for example bankruptcy or liquidation, a person about to leave Ghana indefinitely or cease business, an offence under a tax law, or inadequate documentation. The Commissioner-General may accept security instead.
- Adjusted assessment (s.39): the Commissioner-General adjusts an assessment so that the correct tax is charged; the original ceases to have effect to the extent adjusted.
- Provisional assessment: an estimate for instalment payers (Income Tax Act, s.123).
Time limit. The power to make an original assessment expires six years from when the Commissioner-General was first entitled to make it. There is no limit where there is fraud, wilful default or serious omission (s.37(4)).
The Notice and the Tax Decision
Section 40 requires a written notice of assessment stating the taxpayer’s name and TIN, the tax assessed, the amount remaining after credits, how it was calculated, the reason, the payment date, and the time, place and manner of objecting. In Taylor & Taylor Company Ltd v Commissioner-General (as reported by Kubate), the court criticised the Commissioner-General for demanding payment from the Bank of Ghana before the notice of assessment was even prepared.
A tax decision (s.41) is a decision by the Commissioner-General under a tax law, including an assessment or omission. It does not include a practice note, class ruling or private ruling, a decision affecting a person only as a tax officer, an objection decision under s.43, or a decision to compound an offence. An assessment is made when the notice is served; any other decision when written notice is served. If no notice comes, you may elect to treat the Commissioner-General as having made an unfavourable decision once the statutory time expires or, if none is set, 90 days after your request.
How to Object (Section 42)
- Within 30 days of being notified of the tax decision.
- In writing, stating precisely the grounds.
- Extension: apply in writing before the 30 days expire; the Commissioner-General may extend on reasonable grounds (absence from Ghana, sickness, other reasonable cause).
- Payment: the objection is not entertained unless you have paid, for import duties and taxes, all outstanding taxes including the full amount in dispute; for other taxes, all outstanding taxes including 30% of the tax in dispute. The Commissioner-General may waive, vary or suspend this or accept security.
- Finality: if no objection is made within 30 days, the tax decision is final.
Illustration (invented figures). Adom Foods Ltd disputes corporate income tax of GHS 600,000 and VAT on local sales of GHS 200,000, plus import duty of GHS 150,000. Deposit: 30% × GHS 800,000 = GHS 240,000, plus GHS 150,000 import duty in full = GHS 390,000, together with any other undisputed outstanding tax.
The Commissioner-General’s Response (Section 43)
The Commissioner-General may vary the decision in whole or part, or disallow the objection, and must serve notice with reasons within 60 days of receiving the objection. If there is no notice in 60 days you may elect, in writing, to treat the objection as disallowed. The decision is made when you are served, or 30 days after you file the election.
Appeals (Section 44 as Substituted by Act 1029)
Appeal to the Independent Tax Appeals Board within 30 days. If still dissatisfied, appeal to the High Court within 30 days of the date the Board’s decision was served. In the High Court, at least 25% of the tax in dispute must be paid before the court will entertain the appeal, and a deposit paid before the objection counts towards it (Fan Milk, as reported by Kubate).
EXAM TIP: Answer the stage the question asks. In March 2023 the question was the procedure to object, and the examiner noted that candidates who wrote about appeals to the Board and the courts earned nothing extra, because appeal “was not a requirement of the question”. In May 2021 the question was about redress, and the examiner said many did not know the Appeals Board exists.
Memory Trick: 30, 60, 30, 30 and 30%
Thirty days to object. Sixty days for the Commissioner-General to decide. Thirty days to the Board. Thirty days to the High Court. Thirty percent deposit.
How the Examiner Tests It
- May 2020, Q1(c), 8 marks: conditions to be met by a company objecting to an adjusted assessment containing customs duty, a withholding tax surcharge, VAT (half on imports) and corporate tax.
- May 2021, Q1(c), 10 marks: advise a taxpayer on the objection processes.
- March 2023, Q1(c), 10 marks: the procedure for objecting to a tax decision (ss.42 and 43).
- November 2024, Q1(b), 10 marks: when a tax decision is made (3), four conditions for a valid objection (4), and the options open to the Commissioner-General (3).
- July 2023, Q1(c), 10 marks: self, pre-emptive, administrative and tax audit assessment. July 2024, Q1(c), 5 marks: justify the switch from provisional to self-assessment.
Common Mistakes
- Missing the 30-day limit or forgetting the extension must be applied for before it expires.
- Forgetting the payment condition, or applying 30% to import duties (they are paid in full).
- Saying silence means the objection is allowed. It means you may elect to treat it as disallowed.
- Sending an appeal straight to the High Court. The Board comes first.
- Writing the whole appeal chain when only the objection is asked.
The Mark-Winning Answer Format
Six lines: the decision and when it is made; the 30-day limit, in writing, with grounds; the extension rule; the payment condition and the waiver power; the 60-day response (vary or disallow, reasons, election); then, only if asked, the Board and the High Court, 30 days each.
Conclusion
Tax administration is a procedure topic, which means it rewards memory and structure. Learn the 30-60-30-30 line, learn the section numbers, and answer only the stage you are asked.
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