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TAX EVASION.pdf - Christian Service University College

TAX EVASION.pdf - Christian Service University College

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Otaflire is right on the issue and the traders are not justified to resist the increment. Over the past<br />

11 years, the economic situation has remarkably changed. Prices of most goods and services<br />

have more than doubled. The cost of service delivery has equally increased. Under the<br />

circumstances, KCC is also justified to review the taxes.<br />

MPs on the trade committee must avoid the temptation of acting in a populist manner. They must<br />

consider the issue objectively. One of the serious problems the country is experiencing is the<br />

high rate of tax evasion. Companies owned by tycoons have been named among notorious tax<br />

defaulters, yet salaried employees are subjected to a big tax burden. Some business tycoons are<br />

granted generous and undeserved tax waivers. This is unfair.<br />

Politicians should stop meddling in tax administration. Instead, they should sensitise<br />

citizens about paying taxes and then demand accountability in terms of services. All Ugandans<br />

should equitably share the tax burden.<br />

2.20 2009 Target Revenue for Internal Revenue<br />

The Internal Revenue <strong>Service</strong> (IRS) is targeting revenue collection of over GH¢2 billion<br />

for this year 2009. The <strong>Service</strong> collected GHg1 .2 billion last year, Major (Rtd) Daniel<br />

I Sowah Ablorh-Quarcoo, Commissioner of IRS who spoke to B&FT in an exclusive I interview<br />

in Accra, said the target is quite ambitious but was hopeful that it could be met.<br />

He explained that to improve upon efficiency, the IRS has begun developing a tax management<br />

system to computerize the major business processes of registration, assessment, collection and<br />

accounts and network the whole of Greater Accra on Wide Area Network by the end of the third<br />

quarter of the year. The data centre, which is about 95 percent complete, is being built with a<br />

recovery centre in Kumasi. With the completion of the automation system, efficiency in tax<br />

administration will improve.<br />

This will trigger the ability to access information, release staff from desk-work to increase field<br />

audit capacity, increase in-house communication, and — with tax clients- eliminate duplication

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