Tax administration in Ghana has seen a number of reforms since the 1940s, with the most recent being the integration of the Revenue Agencies to an Authority to act as a one stop shop as per the Ghana Revenue Authority Act, 2009 (Act 791). Ghana Revenue Authority (GRA) is operated under three divisions namely, Domestic Revenue Tax, Custom and Support Service of which each of them play an important roles in mobilizing revenue to Government of Ghana. During each fiscal year, Ghana Revenue Authority generates taxes revenue using both Source based-taxation and Resident based-taxation methods. The Revenues below represent Tax generated by Commissioner General of Ghana Revenue Authority for 2019 year of assessment.  Use it to answer the questions that follow.

                                                                                  GH¢ ‘000

Other International Trade Taxes                                           6,500

Excise duties                                                                    2,000

Valued Added Tax (VAT)                                                     4,000 

Import VAT                                                                        3,000

Property taxes                                                                  3,000

Vehicle Income Tax Stickers (VITS)                                    2,000

Petroleum Taxes                                                               1,200

National Health Insurance Levy                                           2,000

Capital Gain Taxes                                                            7,000   

Export and Import Duties                                                  19,000

Excise Tax Stamps                                                            3,000 

Corporate Taxes                                                                 2,000

PAYE                                                                                8,000

Communications Service Tax (CST)                                     4,000 

Total Revenue                                                                  88,500

Required:

i. Outline the responsibility and structure of Domestic Tax Revenue Division (DTRD)        

ii. Compute the total taxes collected by this Domestic Tax Revenue Division. 

iii. Calculate the total taxes collected by Custom Division.   

iv. Compute the total taxes collected by Support Service Division. 

v. Evaluate how best GRA had been arranging its affairs to achieve low compliance and administrative cost.     

Answer rating: 100% (QA)

i Outline the responsibility and structure of Domestic Tax Revenue Division DTRD ANSWER The Domestic Tax Revenue Division DTRD is responsible for coll... View the full answer