Dr. Abdallah Ali-Nakyea, a tax expert, has backed the Judicial Services’ decision to establish the Tax Court. According to him, the establishment of the tax court will boost domestic resource mobilization. Also, he notes that it will help in the recovery of the tax as people will respond quickly when they are summoned.
He reveals to The Vaultz News that enforcement of the tax laws will become more efficient when a court is dedicated to handling tax crimes or offenses.
“I think it is a welcome decision that we all have to support. We expect to improve domestic resource mobilization. When people get summons to appear, it will entice them to quickly go and settle”.
His comments come after the Chief Justice on April 16, 2021, released a notice that the Judicial Service is preparing to establish the tax court. The tax court aims to deal with the prosecutions of Tax Cases.
Effective and Efficient Delivery of Justice
As such, Dr. Ali-Nakyea explains that it presents an opportunity to develop that kind of specialization to get efficient and effective delivery. This is because lawyers that specialize in taxation will preside over such cases.
Also, he educates that the tax court is not different from the normal courts that we have. According to him, there is only one high court but with so many divisions depending on which case they try. He mentions that there is the criminal court, human rights court, the commercial court among others. He, however, reveals that it’s under the commercial court that we have the financial division. This division handles issues bothering financial crimes.
“We also have divisions for the commercial court for tax cases. The tax courts do exist but what I think is been considered is the criminal court for tax offenses. Because if it comes to tax, the law has set out the penalties”.
He further states that under ‘a tax not in dispute’, when the assessment is raised, the parties concerned agree that they owe the said amount. Nevertheless, he stresses the recovery of the money and the penalties on it. According to him, the enforcement procedure becomes very vital in such circumstances as it makes recovery easier and faster.
The SSNIT Court
Moreover, Dr. Ali-Nakyea compares the current tax court to the SSNIT Court. He points out that it will be no different from the SSNIT Court. He indicates that this helps recover money from employers who have SSNIT contribution deduction not remitted to SSNIT. Also, he notes that people have become compliant with SSNIT payments as a result. This is because the court sanctions people who are found guilty.
Meanwhile, a section of Ghanaians questions the rationale behind the establishment of the court. Most people think that the existing courts under the commercial court should handle tax cases. However, Dr. Ali-Nakyea disagrees. He informs that the law has the civil component and the criminal component.
According to him, the commercial courts are all handling the civil aspects. He explains that this has to do with appeals against tax evaders and appeals against objections.
“It is always good that we segregate them to speed adjudication of justice. That is why the court has been segregated into commercial court, criminal court, and all that. It’s just for speedy adjudication of disputes”.
Also, he clarifies that the traditional criminal court handles cases such as robbery, and others. As such, “we don’t have to get them to do that aspect as well”.
Furthermore, he notes that without such a court, people will continue committing tax offenses. “The question is when will it end?”, Dr. Ali-Nakyea quizzed. Adding that voluntary compliance is not easy to come by without enforcement.
The Tax Court
The Judicial Service is preparing to establish the Tax Court upon “representations” that the GRA has made. The GRA in its quest to increase its revenue mobilization has called for the establishment of the Tax Court. This among others, the Authority believes will help rake in the necessary domestic resources to undertake developmental programs. The Tax Court will have its office in Accra. Its location will be the Criminal Division of the Court of Appeal, within the Supreme Court Buildings. The judicial Service is yet to announce the commencement date.
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