Question

Sections 4, 5 and 6 of the Income Tax Act 896 of 2015 mentions the sources of income as
employment, business and investment respectively. Section 133 under interpretation goes further to state that business includes; a trade, profession, vocation or isolated
arrangement with a business character but excludes employment.

Discuss what constitutes business income with reference to trade, profession and
vocation.

B. Under what circumstances would the Commissioner-General of Ghana Revenue
Authority may, by notice, require a person to file a tax return before the due date for
filing of tax returns?

C. The Ghana Revenue Authority Act, 2009 (Act 791) provides certain objectives to be
achieved by the Ghana Revenue Authority (GRA) in the performance of its functions.

Required: Identify FIVE functions that are to be performed by GRA to achieve its objectives.

Answer 1

1. Following constitutes income from  trade, profession and vocation which is taxable under Income Tax Act 2015-

a. A business was defined to include a trade, profession or vocation.

b. Any perso n in employment of another person is excluded from the business income

c. Any professional carrying on self-employment is said to have business income.

d. Business of manufacturing, providing services, construction etc. are taxable as business income

2. In limited circumstances, for non-resident, authorities may require filing of return before due date.

3. Following are 5 functions being performed to achieve its objective by Ghana Tax Authority-

a. assess and collect taxes, interest and penalties on taxes due to the Republic with optimum efficiency;

b. pay the amounts collected into the Consolidated Fund unless otherwise provided by this Act and other Acts;

c. promote tax compliance and tax education;

d. advise district assemblies on the assessment and collection of their revenue;

e. prepare and publish reports and statistics related to its revenue collection