Nov 2018 Q3 c.
Ghana Revenue Authority (GRA) has embarked on serious tax reforms to enable it achieve its tax revenue year after year. As part of the reforms, it has been said that GRA should pursue voluntary tax compliance if it really wants to meet its revenue target.
Required:
Recommend THREE factors that are necessary to ensure voluntary tax compliance. (3 marks)
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- Simple tax laws: When the laws are simple, it allows for compliance as taxpayers are able to interpret it well.
- Simplified procedures: Procedures to be followed to pay tax should be simplified to ensure that tax payers spend less time to complete them.
- Tax Amnesty: where taxpayers are allowed not to pay interest and penalty on non-disclosure of income and in some cases, taxes are forgiven, it allows for tax compliance.
- Penalty and sanctions: Penalty should be imposed with severe sanction to ensure compliance.
- Provision of Tax payers’ service: Services in the form of tax education, provision of assistance to help in filing shall be helpful in the voluntary tax compliance. (Any 3 points)