The Member of Parliament for Okaikwei Central, Patrick Boamah, has called for a review of Ghana’s tax audit regime to make it more supportive of businesses and less punitive.
Speaking to journalists on Monday, March 23, Mr Boamah argued that tax audits should be structured to encourage compliance rather than serve as a tool for punishment.
“What I’m advocating for is that tax audits must not be used as a means of punishment. Rather, businesses must be encouraged to undertake proper reporting of their records of financial statement. Timeous audit must be done by the tax administrators so that if there are any errors detected, and even if there are interest or penalties, it will be minimal,” he explained.
He said frequent and timely audits could help detect discrepancies early, reducing the financial burden on businesses and promoting voluntary compliance with tax regulations.
Mr Boamah also pointed to international best practice, citing countries such as South Africa and Kenya, where tax systems are designed to differentiate between types of infractions and apply proportionate penalties.
“This is what the South Africans do. The South Africans employ a behaviour-based penalty system that distinguishes between inadvertent errors, negligence, and deliberate evasions. The countries like Kenya apply simple interest rates at modest levels to prevent exponential debt growth,” he added.
The Okaikwei Central MP stressed that adopting similar approaches could improve Ghana’s tax administration system while supporting business growth and economic stability.
