Ghana Revenue Authority Clarifies Reasons for Freezing Taxpayers' Accounts

The Ghana Revenue Authority (GRA) has clarified its stance on freezing bank accounts, explaining that such measures are only taken when taxpayers fail to cooperate after being informed of their outstanding tax obligations.

The clarification comes in response to rumors circulating on social media that suggested the GRA had frozen the bank accounts of Richard Nii Armah Quaye, the founder of Bills Micro Credit Ltd. The GRA issued a statement through its Communication and Public Affairs Department, providing a detailed explanation of its process for assessing taxes.

According to the GRA, it follows a structured procedure for tax assessment, which starts with requesting individuals and businesses to voluntarily declare their earnings. If taxpayers fail to submit their declarations within the required timeframe, the GRA will conduct an assessment based on the financial data it has access to. Enforcement actions, such as freezing bank accounts, are only considered if the taxpayer continues to be non-compliant after receiving formal notifications.

In Mr. Quaye’s case, the GRA confirmed that although an income tax assessment had been issued, no enforcement actions, including freezing his accounts, had been taken. The Authority urged the public to disregard misleading reports circulating on social media, which falsely claimed that his accounts had been frozen.

The GRA emphasized that its tax enforcement measures are designed to be fair and transparent, and it remains committed to upholding these principles in all its operations. The Authority encouraged taxpayers to voluntarily meet their tax obligations to avoid unnecessary penalties, interest charges, or other legal actions that could arise from non-compliance.

Reaffirming its focus on integrity and fairness, the GRA assured the public that it follows a rigorous and transparent process in its tax administration. It reiterated that taxpayers who meet their obligations voluntarily are less likely to face enforcement measures, such as account freezes, and are able to avoid penalties or additional charges.

The GRA’s message serves as a reminder to all taxpayers about the importance of complying with tax regulations in order to maintain a smooth and efficient relationship with the tax authorities. By encouraging voluntary tax compliance, the GRA seeks to maintain a fair and equitable tax system for all citizens.