2022

ANNUAL
REPORT
2022 ANNUAL REPORT

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 2022 ANNUAL REPORT

List of Tables

Table 2.1: Selected Countries' Real GDP Growth Rates

(% Annual)
Table 2.2: CPI Inflation for Selected African Countries (Average
Annual % change)
Table 2.3: Ghana's Annual Economic Aggregate
Table 4.1: Performance by Revenue Heads
Table 4.2: Analysis of Tax Revenue Performance: 2017 – 2022
Table 4.3: Revenue Performance – 2022
Table 4.4: Nominal Growth Analysis – 2022
Table 4.5: Comparison of Actual and Target CIF – 2022
Table 4.6: Comparative Analysis of Values of Imports Admitted a
Various Import Duty Rates
Table 4.7: Analysis of Exempt Goods: 2020 – 2022
Table 5.1: Update of Taxpayer Population
Table 5.2: NIA Database Matched to Existing TINs
Table 5.3: Active Taxpayer Population
Table 5.4: Filing Rate by Tax type – 2022
Table 5.5: Analysis of the Overall Debts
Table 5.6: Types of Infraction
Table 5.7: Summary of Domestic Tax Revenue Assessments
Table 5.8: Revenue from E-commerce
Table 5.9: Tax Revenue generated from HNWI
Table 5.10: Preventive Operations
Table 5.11: GRA Property Portfolio Mix
Table 7.1: Staff Strength
Table 7.2: Gender by Division
Table 7.3: Promotions
Table 7.4: Staff Attrition
Table 9.1: Growth Analysis of Target 2023
Table 9.2: Analysis of Tax Revenue Actual Target: 2017 – 2023

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List of Figures

Figure 1. Organizational Structure

Figure 2.1 Exchange rates
Figure 2.2 2022 Inflation
Figure 3.1: Strategic Goals/ Transformational Pillars
Figure 3.2- Revenue Growth
Figure 3.3- Contribution to Total Revenue
Figure 3.4- Level of Digitalisation
Figure 3.5- Efficiency of Tax Administration
Figure 4.1: Percentage (%) Contribution by Revenue Heads to Total Tax Revenue
Figure 4.2: Annual Tax Revenue Performance 2017 – 2022.
Figure 4.3: Analysis of tax revenue growth rates and tax-to-GDP ratio.
Figure 4.4: Tax Revenue Trends (2017-2022)
Figure 4.5: Percentage taxable CIF
Figure 4.6: Values of Imports admitted at various Import Duty Rates.
Figure 4.7 Comparison of tax-to-GDP ratio
Figure 4.8 Percentage (%) Contribution of Different Tax Heads to Total Tax Revenue in the
ECOWAS Region
Figure 5.1 Analysis of Debt
Figure 5.2 Infrastructural Projects
Figure 7: 1 Percentage Distribution by Category of Staff
Figure 7.2: Staff Strength

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Letter of Transmittal

20th June, 2023

Minister for Finance

Accra

Hon. Ken Ofori-Atta

Dear Minister,

In accordance with section 26 (1) and (2) of the Ghana Revenue Authority Act, 2009
(Act 791), I have the pleasure of presenting to you on behalf of the Governing Board,
the Annual Report and Financial Statement of the Ghana Revenue Authority (GRA)
st
for the year ended 31 December, 2022.

Yours faithfully,

……………………………..
Dr. Anthony Oteng-Gyasi
(Board Chairman)

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Dr. Anthony Oteng-Gyasi
Board Chairman
Board Chairman's
Statement
Against all expectations, the 2022 fiscal year
turned out to be a year of sharp contrast in the
fortunes of the global economic outlook.
From the 1st quarter to the 2nd quarter of the
year, the world economy remained on a
remarkable path of steady growth and
recovery from the scourge of the COVID-19
pandemic. Thanks to the emergence of
vaccines which had been developed to contain
the spread of the pandemic.
On the heels of recovery from the ravages of
the COVID-19 pandemic and its dire
consequences on the economy, then emerged
a protracted conflict between Russia and
Ukraine; a war that inflicted severe global
economic hardship on humanity. Russia's
invasion of Ukraine gave rise to a shortage of
food supply and an energy crisis; Europe and
Africa were the hardest hit regions. High
soaring prices of essential food supply, energy
and petroleum products visited untold
hardships in many economies throughout the
world.
During the mid-year Budget Review by the
Hon. Minister for Finance, the Revenue target
initially given at GH¢80.3 billion, was revised
downwards to GH¢71.94 billion for GRA. The
downward revision of the target was also partly
due to the poor performance of the E-Levy
which was earlier projected to bring in about
GH¢7.0 billion.
The Board and Management of the Authority in
the last two quarters remained resolute in their
determination to push Management and staff
to exceed the revised revenue target of
GH¢71.94 billion against all odds.
Notable strategies and initiatives that were
vigorously pursued under the oversight
supervision of the Board included intensified
VAT Invigilation which turned out to yield the
desired impact in the growth of indirect tax
handling. Efforts were relentlessly geared
toward blocking revenue leakages at the Ports
which enhanced the performance of Customs
revenue.
The Board also prioritized staff welfare and
capacity-building interventions through the
approval of training programmes to improve
the performance of staff across the various
Divisions of the Authority.
All outstanding issues which had stalled staff
promotion were also resolved to pave way for
Management to clear promotion backlogs for
two different year groups. The outcome of all
these oversight interventions by the Board
became evident by the close of the year.
I am delighted to report that amid all the storms
in the year, the Authority was able to mobilize
GH¢75.54 billion against the revised target of
GH¢71.94 which represents a positive
deviation of 5.0% and a nominal growth of
31.5% over the tax revenue collected in 2021
fiscal year.
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Despite the difficulties we expect 2023 to
come with improved prospects for the
economy, at least during the second half of the
year.
Against this backdrop, the Board urges
Management, to deliberate on effective ways
to realize the full potential of VAT collection,
Excise Stamp, High Net worth taxation, Rent
Income Tax, Property Rate among many other
interventions that have been rolled out in 2022.
Efforts must also be doubled in
the implementation of VIT and Tax Stamp.
The Board pledges to make the appropriate
interventions to facilitate the passage of the
various tax bills which are currently pending
before Parliament so that implementation
does not delay into the second quarter of 2023.
The Board believes in the ability, willingness and
commitment of Management and Staff to turn
round the revenue fortunes in 2023 and make
remarkable improvements in revenue Mobilisation.
The Board assures you of our unwavering
commitment to supporting in every possible way for
Management to provide the right logistics and staff
motivation to facilitate your work.
It is the expectation of the Board that Management
and all staff of the Authority will bring up the most
relevant, robust and outside-the-box strategies in
order to meet the 2023 revenue target, which is
expected to grow about 40% over the 2022
revenue target.
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Rev. Dr. Ammishaddai Owusu-Amoah
Commissioner -General
COMMISSIONER-
GENERAL'S
REPORT
The country continues to emerge out of the
effects of the COVID-19 and the Russia-
Ukraine war which have led to high inflation in
petroleum prices and cost of living, loss of jobs
and other subsequent market failings on the
world's economy.
In spite, of this daunting economic situation,
the Authority exceeded the revised revenue
target of GH¢ 71.95 billion by 5.0% (ie GH¢
3.78 billion). Thus, total revenue collected for
the 2022 fiscal year was GH¢ 75.71 billion, (ie
GH₵4.6 billion) less of the original target of
GH¢80.31 billion.
The successes chalked can be attributed to
the reviewed targets, (this was necessitated
by the less than expected returns from the
implementation of Electronic Transfer Levy (E-
Levy) and series of initiatives embarked on by
the Authority to drive revenue collection
namely; VAT invigilation, re-engineered
processes and procedures, addressing staff
welfare needs and adequately equipping
officers to work professionally among others.
These led to a growth of 29.3% in Domestic tax
and 38.4% in Customs revenue respectively.
Within a period of four years the Authority has
doubled its total tax revenue performance from
GH¢ 37.68 billion in 2018 to GH¢ 75.71 billion
in 2022.
During the year, we launched an enhanced
Informant Award Scheme to attract and
reward the disclosure of tax information by
third parties. This exercise yielded an
amount of GH₵ 421million and $93million
in tax revenue.
Other initiatives worth mentioning are; the
digitalisation of the Records Management
system; the end-to-end processes in Tax
Audit Quality Assurance; roll-out of the
Taxpayersportal App; Electronic VAT
invoicing (E-VAT) System; Electronic Tax
Clearance Certificate (e-TCC) and
Electronic Auction (E-Auction).
The digitalisation of the Records
Management provided the Authority with a
modernised information management
system which ensures the security of
current and non-current records with the
added features of ease of retrieval,
referencing, storage and disposal of
records. This improved turnaround time for
internal workflow, causing staff to work with
enthusiasm and speed.
The digitalisation of the end-to-end processes
in Tax Audit Quality Assurance included the
adoption of electronic audit working papers,
audit management solution and a revenue
reporting dashboard.
Currently, the revenue reporting dashboard is
in the pilot stage. This is a near-real time
business intelligence platform that provides
insights on revenue performance across the
Divisions in the Authority.
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It seeks to address the varying gaps within the
revenue reporting ecosystem such as
recurring reconciliation differences, tax handle
mismanagement among others.
We are also in the process of developing a new
overall audit strategy, involving audit reviews
and special investigations resulting from high-
potential tipoffs. This will foster closer
coordination with the Ethics and Good
Governance Department and greater
harmonization with Area offices and other
audit Departments/Units in the Authority and
ultimately translate into gains for the Authority.
During the year we rolled out the
Taxpayersportal, which can be downloaded
from Google or App store to provide a
seamless and convenient way for taxpayers to
file returns and make the accompanying
payments online.
In October, we began migration of selected
businesses who were issuing manual VAT
invoices onto the Electronic VAT Invoicing
System. This exercise will be in phases and
will enhance compliance.
Additionally, we implemented the Electronic
Tax Clearance (E-TCC) system to remove all
bottlenecks in the application for a Tax
clearance and improve on the way we operate.
Under the second phase of ICUMS, we rolled
out the E- Auction module, to make the auction
process transparent. These initiatives all
impacted positively on the operations of the
Authority.
One of the important revenue measures in the
2021 Budget Statement which we
implemented in the year among others was the
st
Electronic Transfer Levy (E-Levy) from 1 May,
2022.
The Levy was charged at the rate of 1.5% on
an applicable electronic transfer at the time of
transfer. Unfortunately, the expected revenue
could not be realised due to varied socio
economic and political reasons.
With the assistance of GIZ, the Authority
reviewed its Code of Ethics and Conduct
which was first developed in 2010 and also
introduced the first ever E-Learning Module
Course. Over seven thousand five hundred
staff (workforce) participated in this online
sensitisation novelty of E-Learning Modules.
Performance Management continues to be a
very important piece in our stride for efficiency,
so we ensured that representatives from all
Units, Departments and Divisions across the
country were trained as trainer of trainers to
ensure a smooth implementation of the 360
Performance Management System and so for
the first time in the history of the Authority,
officers attempted completing their Target
Setting and Mid-year and yearly Appraisals
online.
In line with our vision to achieve 'world class
revenue administration' status, we are
continuously improving on our service delivery
standards.
In view of this, we revised our Service Charter
and relaunched it to emphasise our desire to
provide timely, accurate information at all
times to our cherished taxpayers in a
professional manner. Our taxpayers were also
sensitised on their rights and obligations.
The following revenue measures have been
outlined for the 2023 fiscal year and are
expected to expand the tax net, block revenue
leakages as well as rake in extra tax revenue.
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These are; revision of income-based taxes, implementing of the Unified Property Rate collection,
intensify the implementation of the VAT E-invoicing system to enhance compliance, pursue
Additional Oil Entitlement (AEO) in relation to the Jubilee Field, and enhance Rent Tax
Compliance among others.

We appreciate the support from our Board, Staff, Donor Partners, tax paying public, media
and all who in diverse ways were part of our 2022 success story.

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Key Performance Dashboard

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CHAPTER 1:

About Ghana
Revenue Authority

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1.1 Corporate
Profile
The Ghana Revenue Authority (GRA) was
established by the Ghana Revenue Act 2009
(Act 791) as a semi-autonomous body
charged with the responsibility of assessing,
collecting and accounting for tax revenue in
the country. The core mandate of the Authority
is to ensure maximum compliance with all
relevant laws in order to ensure a sustainable
revenue stream for government, legitimate
trade facilitation and control of goods across
the country's borders.
1.1.1 Objects of the Authority
1. Provide a holistic approach to tax and
customs administration.
2. Reduce administrative and tax compliance
cost and provide better service to taxpayers.
3. Promote efficient collection of revenue and
the equitable distribution of tax burden and
ensure greater transparency and integrity.
4. Ensure greater accountability to
Government for the professional management
of tax administration.
5. Improve information linkage and sharing of
information among the Divisions of the
Authority.
6. Provide a one-stop service for taxpayers for
the submission of returns and payment of
taxes.
7. Provide common tax procedures that
enable taxpayers to be governed by a single
set of rules.
8. Provide for other matters related to the
improvement of revenue administration.
1.1.2 Functions
The functions of the Authority as enacted by
Act 791 are:
1. Assess and collect taxes, interest and
penalties on taxes due to the Republic
with optimum efficiency.
2. Pay the amounts collected into the
Consolidated Fund unless otherwise
provided by Act 791 and other Acts.
3. Promote tax compliance and tax
education.
4. Combat tax fraud and evasion and
cooperate with other competent law
enforcement agencies and revenue
agencies in other countries.
5. Advise District Assemblies on the
assessment and collection of their
revenue.
6. Prepare and publish reports and
statistics related to its revenue
collection.
7. M a k e r e c o m m e n d a t i o n s t o t h e
Minister on revenue collection policy;
and
8. Provide any other revenue-related
functions as directed by the Minister or
as assigned under any enactment.
1.2 Vision, Mission and Core Values
Our Vision
To be a world-class Revenue Administration
recognized for professionalism, integrity and
excellence
Our Mission
To mobilise revenue for national development
in a transparent, fair, effective, and efficient
manner.
Our Values
The Authority in the discharge of its mandate,
is guided by the following core values:
Integrity: Be fair and honest
Fairness: Provide consistent and
standardised service
Service: Provide timely and accurate
responses when dealing with interactions from
customers using channels of their choice
Teamwork: Work together to achieve our
goals
Innovation: Build a culture that readily adapts
to changes in the operating environment
Professionalism: Apply the requisite
knowledge, skills and abilities to meet
stakeholder expectations
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1.3 Stakeholders
GRA is committed to collaborating with
stakeholders and strategic partners in
pursuing its reforms and Transformation
Agenda. These Stakeholders are individuals,
groups, businesses, Development Partners,
MDA's and MMDA's who have various levels
of interest in our core business and partner
GRA in every area of our operations.
They include: Government, Ministry of
Finance, Bank of Ghana, Governing Board of
GRA, MDAs/MMDAs, Taxpayers, Donor
Partners, World Bank, ECOWAS
Commission, GRA Employees, Freight
Forwarders/Ghana Shippers Association,
GPHA/SOAAG, Trade and Professional
Associations, Ghana Union of Traders
Association (GUTA), Association of Ghana
Industries (AGI), Civil Society Organisations
(CSOs), Banks and other Financial
Institutions, Service Providers and General
Public.
1.4 Organisational Structure
The GRA Board is responsible for governing
the affairs of the Authority as set out in the GRA
Act 791. The Board ensures the proper and
effective performance of the functions of the
Authority.
The Commissioner-General reports directly to
the Board, and also retains functional
accountability to the Minister for Finance. He is
responsible for the day to day management of
the Authority and is assisted by his
management team led by three
Commissioners who are in charge of the
Domestic Tax Revenue Division (DTRD),
Customs Division (CD) and the Support
Services Division (SSD).
This three-winged structure is designed to
ensure maximum efficiency in the Authority's
core business of revenue mobilisation.
The Customs and Domestic Tax Revenue
Divisions focus on revenue collection and non-
revenue functions including legitimate Trade
Facilitation, Public Safety and Border
Protection. The Support Services Division
supports the other Divisions with the required
management services.
The Office of the Commissioner-General also
has Departments and Units that provide
management support services.
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Organisational Structure of GRA

Figure 1.1: GRA Organogram

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1.5 Governing Body of the Authority

In accordance with Section 4 (1) of the GRA Act 791, the Governing Board of the Authority consists
of:
· Chairperson,
· The Commissioner-General,
· A representative of the Ministry of Finance,
· A representative of the Ministry of Trade and Industry,
· The Governor of the Bank of Ghana or his representative,
· Four (4) other persons from the Private Sector of whom two (2) are women.

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BOARD MEMEBERS

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GRA TOP MANAGEMENT

Iddrisu Iddisah Seidu

Ag. Commissioner,
Customs Division

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DEPUTY COMMISSIONERS

Transformation

Dr. Charles Addae

Operations 1

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DEPUTY COMMISSIONERS

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CHAPTER 2:

Economic
Overview

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2.1 Global Economic Development
The global economy came under severe strain
in 2022 on the back of continued spillovers
from geopolitical tensions, continued
tightening of monetary policy across countries,
even as policy uncertainty heightened amidst
fears of recession in advanced economies.
This arose from the fight against the
exponential rise of inflation as a result of
supply-demand imbalances, and policy
support during the pandemic. The Russian-
Ukrainian war which has fragmented the
global economy into geopolitical blocks further
weighed on global economic activity in 2022.
Global growth, therefore, slowed from 6.0
percent in 2021 to 3.0 percent in 2022,
according to the IMF, recording one of the
weakest growth profiles in recent years except
for the global financial crisis in 2007, and the
acute phase of the COVID-19 pandemic in
2020. This, obviously reflects significant
slowdowns for the largest, emerging and
developing economies. Global headline
inflation also moderated at 8.7 percent as
against 4.7 in 2021 due to reasons indicated
above.
Table 2.1: Selected Countries' Real GDP Growth Rates (% Annual)
2.2 Sub-Saharan Africa and ECOWAS -
Growth Rate
The IMF's Regional Economic Outlook for
Sub-Saharan Africa for the period under
review indicates that the region's economic
recovery in 2021 has also been suddenly
disrupted by spillovers from the Russian-
Ukrainian war and tighter global financial
conditions, thus pushing many countries in the
region to the brink. Growth in the region
therefore contracted from 4.7 percent 2021 to
3.6 percent in 2022, potentially due to low
investment activity and a worsening trade
balance.
In 2021, the ECOWAS sub-regional economy
rebounded through the resumption of trade
among member states, after a year of deep
recession due to the COVID-19 pandemic.
Consequently, real GDP growth strengthened
to 4.4 percent from a contraction of 0.6 percent
in 2020. However, growth rate slowed at a rate
of 3.7 percent in 2022, as a result of
consequences of the Russian-Ukrainian war,
and the severity of disruptions in commodity
markets and to supply chains
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2.2.1 Inflation Average inflation rate for the ECOWAS

Sub-Saharan Africa's inflation has
mirrored global trends where inflation has
risen more rapidly and steadily than
anticipated such that, double-digit inflation
was prevalent in many economies in the
region. Much of the recent movement has
been driven by increases in prices of
essential food and energy related items.
Average annual CPI-based inflation of the
region accelerated from 11.1 percent in
2021 to 14.4 percent in 2022 due to
increased food and fuel prices as well as
high exchange rate.
region in 2022 was estimated at 16.6
percent, 4.1 percentage points higher than
in 2021.
However, inflation remains subdued in the
CFA-franc Zone countries, where most of
these countries including Cote D'Ivoire
recorded single digit inflation whilst most of
the Anglophone countries including Ghana
and Nigeria recorded double digits.

Table 2.2: CPI Inflation for selected African Countries

(Average Annual % change)

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2.3 Ghana's Macroeconomic Performance
The economic conditions in 2022 have been
largely unfavourable to businesses and
individuals alike, it influenced the growth
pattern of the country's GDP which shrank
from 5.4 percent in 2021 to 3.6 percent in
2022. The slowdown affected mostly the non-
extractive sectors, as the recovery in gold
exports supported extractives growth.
High inflation and interest rates depressed
private consumption and investments.
Government demand was further weakened
by lack of access to capital markets and high
debt service obligations. Banking sector
vulnerabilities also increased because of the
cedi depreciation and the impact of the
d o m e s t i c d e b t e x c h a n g e . H o w e v e r,
Government's resolve to engage the
International Monetary Fund to provide credit
support appears to have created a positive
outlook for the economy for the ensuing year.
The IMF programme is also expected to
provide policy credibility and inject some
confidence amongst international investors.
2.3.1 Real Sector Developments
The Agriculture and Services sectors
experienced slower growth in 2022 by 4.2 and
5.5 percent respectively, than in 2021 which
recorded 8.5 and 9.4 percent. This
corresponded to their share of GDP of 20.9
and 44.9 percent for 2022 as against 21.1 and
48.5 percent in 2021 respectively. The industry
sector, however, grew by 1.4 percentage
points from -0.5 in 2021 to 0.9 percent in 2022.
Its share of GDP recorded an increase of 30.4
in 2021 to 34.2 percent in 2022.
The Services sector has maintained its
dominance as the biggest sector over the
medium term with regards to its contribution to
GDP, followed by the Industry and Agriculture
sectors.
2.3.1.1 Services
Under this sector, Trade, Repair of Vehicles,
and Household Goods sub-sector has been
the largest contributor to the services' sector's
GDP, averaging a contribution to the sector's
GDP by 17.1 percent in the last three years.
This has been as a result of consumer
spending proxied by domestic VAT and retail
sales. The sub-sector has grown marginally
from 16.9, 17.1 and 17.5 percent respectively
for 2020, 2021 and 2022. Transport and
Storage, Information and Communication, and
Financial and Insurance Services however
shrank by 1.27 (6.3% in 2022), 0.42 (3.7% in
2022) and 0.63 (3.0% in 2022) respectively.
2.3.1.2 Agriculture
This sector's contribution to GDP has
moderated at 20.7 percent over the period
2020-2022, with the crop sub-sector assuming
the largest contributor to Agric GDP. The Crop
sub-sector has averaged a contribution to the
sector's GDP by 17.0 percent over the period
2020 to 2022 due to Government's flagship
programme, Planting for Foods and Jobs and
other programmes such as the Ghana's
Agricultural Subsidy, and Effective Crop
Protection. In particular, this has increased
cocoa production by 24.3% from the 683,564
tonnes recorded in the 2021/2022 season to
850,000 tonnes in the 2022/2023 season.
2.3.1.3 Industry
The mining and quarrying, and the
manufacturing sub-sectors have been the
largest contributor to Industry's sector's
GDP, averaging a contribution of 11.6 and
11.9 percent spanning 2020 and 2022.
Both sub-sectors growth increased by 4.1
(13.7 in 2022) and 0.79 (12.4 in 2022)
percentage points for the mining and
quarrying and manufacturing respectively.
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Electricity and Construction sub-sectors
contracted by 11.2 and 10.1 percent, mainly
due to increased construction materials,
proxied by the volume of cement sales which
posted a significant decline, and the alleged
illicit meter tampering leading to a high debt
stock (0.9 in 2022 Electricity), (6.2 in 2022
Construction). The water and sewerage
subsector however, maintained a growth of 0.9
percent for 2021 and 2022.
Overall, the Non-Oil annual GDP contracted
from a growth of 6.6 percent in 2021 to 3.8
percent in 2022. The lean growth rate could be
attributed to the non-performance in
construction, hospitality, information and
communication and the financial sub-sectors.

Table 2.3: Ghana's Annual Economic Aggregate

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2.3.2 Interest Rate
The Monetary Policy Rate (“MPR”) increased
from 14.5 percent in December 2021 to 29.9
percent in December 2022, to sustain price
measures. In response to this, the average
commercial lending rates also moderated at
20.2 percent.
2.3.4 Inflation
Inflation remained elevated in 2022, driven by
both demand pressures and supply shocks.
The two price leanings showed a significant
jump in headline inflation to 54.1 percent in
December 2022, from 50.3 percent in
November, and 40.4 percent in October 2022.
2.3.3 Exchange Rates
The local currency came under intense
pressure during the period under review,
reflecting the portfolio reversals (when the
price trend changes), and lower foreign direct
investment inflows, while demand pressures
increased. For the year 2022, the Ghana cedi
depreciated by 30.0 percent against the US
dollar and this compares with 4.1 percent
depreciation in 2021.
The Ghana Statistical Service indicates that
the acceleration in inflation was driven mainly
by the lagged effects of the sharp currency
depreciation recorded in October. Food and
non-food inflation went up significantly. Food
inflation surged to 59.7 percent in December
from 55.3 percent in November 2022, while
non-food inflation rose to 49.9 percent from
46.5 percent over the same comparative
period.
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CHAPTER 3:

Strategic Plan
Evaluation Highlights

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3.1 GRA's 3rd Strategic Plan: 2020 - 2022
The 3rd Strategic Plan was developed based
on the vision of the government to move
“Ghana Beyond Aid”, increasing urgency for
domestic resource mobilisation, the need to
encourage voluntary compliance as well as
leverage technology and digitalization in tax
administration.
rd
3.2 Highlights of 3 Strategic Plan: 2020 –
2022 Evaluation Report
The Ghana Revenue Authority's Third
Strategic Plan aimed to increase revenue
mobilisation and improve efficiency and
effectiveness between 2020-2022.
The Plan was based on the government's
policy agenda of “Ghana Beyond Aid”.
Source: GRA 3rd Strategic Plan (2020-2022) Evaluation Report
The Plan is premised on five (5) Strategic
Goals supported by Transformation Pillars for
the three Divisions and the Departments/ Units
under the Commissioner-General's Office.
.3.2.1 Revenue
The GRA set a revenue growth target of 28.2%
in order to achieve a tax-to-GDP target of
17.5% by 2022. However, total tax revenue
increased by 6.72% from 2019 to 2020,
followed by a 22.57% increase in 2021 and a
31.82% increase in 2022. While the growth in
tax revenue fell short of targets in 2020 and
2021, the 2022 growth of 31.8% exceeded the
target. The details as shown in figures 3.2 and
3.3
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3.2.2 Compliance and Enforcement 3.2.3 Digitalisation

Compliance and Enforcement targeted
improvement at Customs and DTRD by
strengthening investigation, intelligence and
prosecutions.
This goal was to ensure aggressive digital
transformation agenda to improve efficiency,
productivity and realise revenue potential. GRA has
gone cashless and operational activities have been
digitalized.

Figure 3.4- Level of Digitalisation

Source: GRA 3rd Strategic Plan (2020-2022) Evaluation Report

3.2.4 Efficiency of Tax Administration The effectiveness of resource allocation,

This was to enhance administrative efficiency
and reduce cost of collection by streamlining
administrative procedures and processes to
eliminate redundancies and duplications as
well as migrate to electronic platforms.
logistics provision, and inclusive decision-
making has ensured timely availability of tools
and minimized disruptions across the
Authority.

Figure 3.5- Efficiency of Tax Administration

Source: GRA 3rd Strategic Plan (2020-2022 Evaluation Report

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3.2.5 Capacity Building and
Professionalism
This was to ensure the achievement of a
performance-driven culture with a highly
motivated and professional staff strongly
focused on revenue collection to manage
GRA`s cost-to-serve.
The provision of needs-based and
development training culminated in
strengthening the management structure
of the Authority
3.3 2022 Tax Policy Measures
3.3.1 Revision of the VAT Flat Rate Scheme
(VFRS)
Government gave an extension of the two-
year VAT tax relief for textile manufacturers to
boost industry growth and employment. The
VFRS was reviewed by applying the Standard
VAT rate to all firms except retailers with
turnover threshold of between GH¢200,000-
GH¢500,000. The rationale was to address
the inequities between domestic producers of
local substitutes vis-à-vis importers of similar
products.
3.3.2 Reduction of Withholding Tax for
Small-Scale Gold Mining
In an attempt to indigenise the mining
framework to ensure that mining companies
retain the full value chain of gold and to
increase compliance by small scale miners,
the withholding tax rate for export of
unprocessed gold was reduced from 3% to
1.5%.
3.3.3 Import Benchmark Review
Reviewed import benchmark on vehicles
and selected general goods to protect
local production. Restored Benchmark
Values of imports by suspending the 50
percent discount on selected general
goods and the 30 percent discount on
vehicles.
3.3.4 Modify Taxation
Implemented the Modified Taxation
System to expand the tax net, make tax
payment simpler, improve compliance,
and ultimately enhance the contribution of
people in that tax category to total tax
revenue. Reviewed the threshold for
taxpayers under the Modified Taxation
System from GH¢200,000 to GH¢
500,000 per annum.
3.3.5 Review of Property Rates
Implemented a common platform for
property rate administration to enhance
property rate collection and
accountability.
3.3.6 Electronic Transfer Levy (E-Levy)
A 1.75 percent charge on electronic
transactions covering, mobile money
payments, bank transfers, merchant
payments, and inward remittances. (all
transactions that add up to GH¢100 or
less per day (which is approximately
GH¢3000 per month) will be exempt from
this levy.
3.3.7 Tax Exemptions
The Tax Exemptions Act, 2022 (Act 1083)
was passed in September, 2022. The
objective of the Act is to provide for an
exemption regime, set criteria and provide
for the administration of exemptions. The
Act also provides for monitoring,
evaluation, reporting and enforcement of
exemptions.
3.3.8 Enhance Activities of High Net-Worth
Office (HNWO)
Standard Operating Procedure (SOP) was
fully implemented and revenue mobilised
from sectors such as Entrepreneurs & CEOs,
Lawyers, Entertainment Industry, Private
Industries, Lawyers and Religious Leaders.
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3.3.9 Matching of Taxpayer Data
· Data Warehouse and Analytics
Project has integrated GRA's core tax
systems (GITMIS and ICUMS). The
project was to enable DTRD and
Customs Division conduct targeted
Audits, guide tax policy and aid in
decision making based on
quantitative data.
· Professional Desks have been set-up
in all GRA Outfield Offices to provide
the needed services to professional
bodies and also register professionals
not captured into the tax net.
3.3.10 Integrated Compliance Risk
Improvement Plan
Historical data was gathered from GITMIS to
develop a dash board which analyses data in
real time.
3.3.11 Audits
· TAQAD enforced tax audit quality
assurance standards across the audit
universe.
· Post Clearance Audit covered
infractions such as under-
declarations, mis-descriptions,
undeclared, under-valuation, wrong
classification etc.
3.3.12 Enforcement
Debt Management and Enforcement
activities resulted in a debt recovery rate of
23.60 percent.
3.3.13 Review and Update of Ghana
Double Taxation Agreement
Ghana's model Double Taxation Agreement
has been reviewed and updated.
3.3.14 Review of Common External Tariff
(CET)
CET has been reviewed for onward
submission to Parliament.
3.3.15 Improve Customs Classification
and Valuation System
Ten (10) countries have been identified and
plans are underway for a Memorandum of
Understanding (MoU) to be signed on the
utilization of mirror trade statistics.
3.3.16 Taxation of Electronic Commerce
Taxation of operational activities of the digital
economy has commenced to curb tax
evasion.
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CHAPTER 4:

Revenue
Performance

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4.1 Overview of Revenue Collection

Total tax revenue as at the end of December 2022 was GH¢75,706.34 million against a target of
GH¢71,948.76 million exceeding the target by GH¢3,757.58 million (i.e. 5.2%).

This performance represents a nominal growth rate of 31.8 percent over the 2021 collection of
GH¢57,433.38 million. In 2022, domestic revenue and customs revenue grew by nominal rates of
29.3 percent and 38.4 percent respectively.

In total, Domestic Tax Revenue Division comprising Direct and Indirect Taxes contributed 70
percent and the Customs Division contributed 30 percent of total tax revenue for the 2022 fiscal
year as depicted in Figure 4.1.

Figure 4.1: Percentage (%) Contribution by Revenue Heads to Total Tax Revenue

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4.2 Analysis of Tax Revenue Performance: 2017 – 2022

The Authority surpassed the 2022 tax revenue target of GH¢71,948.76 million by 5.2 percent (i.e.,
GH¢3,757.58 million) by collecting GH¢75,706.34 million. Considering a non-oil GDP of
GH¢577,282.96 million, the tax-to-GDP ratio was 13.1 percent for the 2022 fiscal year.

Table 4.2: Analysis of Tax Revenue Performance: 2017 – 2022

Source: GRA 2022 Tax Revenue Report.

Figure 4.2 plots the annual tax revenue collections against respective targets from 2017 to 2022.
With the exception of the 2018 and 2019 fiscal years, the tax revenue targets were met.

Figure 4.2: Annual Tax Revenue Performance 2017 – 2022.

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Figure 4.3 features growths in tax revenue and non-oil GDP, and the tax-to-GDP ratio from 2017 to
2022. In 2022, tax revenue increased as much as the economy expanded leading to a tax
buoyancy of 1.0.

Figure 4.3: Analysis of tax revenue growth rates and tax-to-GDP ratio.

Figure 4.4 details the monthly tax revenue collections from 2017 to 2022. Evident in the graph are
the trends and seasonalities of collections peaking at the quarters and dipping in the months
immediately following the end of the quarters.

Figure 4.4: Tax Revenue Trends (2017-2022)

Tables 4.3 and 4.4 detail the tax type revenue collections for 2022 and the nominal growth rates
over the 2021 tax type revenue collections respectively.

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Table 4.3: Revenue Performance – 2022

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Table 4.4: Nominal Growth Analysis – 2022

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4.3 Reasons for Revenue Performance
4.3.1 Domestic Taxes
4.3.1.1 Pay-As-You-Earn (PAYE)
Total PAYE collected for the 2022 fiscal year
amounted to GH¢12,065.41 million
exceeding its target of GH¢11,814.22 million
by GH¢251.19 million (i.e.,2.1%). The PAYE
collection for the year represented a nominal
growth of 24.1 percent over the 2021
collection figure of GH¢9,723.55 million. The
performance of this tax type was mainly due to
the following:
· Payment of Cost-of-Living Allowance
(COLA) which was not factored into
the 2022 projections, bonuses, and
other allowances notably from the
mining and financial institutions.
· Depreciation of the Cedi which led to
an increase in the quantum of PAYE
paid by the mining companies where
salaries of employees were indexed to
the US dollar.
· Increase in the on-time filing rate for
the tax type due to enhanced
compliance activities.
4.3.1.2 Self-Employed
Total tax collected amounted to GH¢659.17
million recording a negative deviation of GH¢
275.60 million (i.e. 29.5%) against the
targeted GH¢934.76 million. There was,
however, a year-on-year growth in revenue of
34.1 percent above the 2021 collection of
GH¢491.45 million. The reasons the tax type
was unable to meet its target are as follows:
· Prolonged delays in the disbursement of
the District Assembly Common Fund
(DACF) and GETFund which is a key
source of funding for the activities of the
MMDAs and other withholding agents
affected their spending budget. As such
individuals and entities that relied on the
MMDAs for business were negatively
affected, reducing their contribution to
the tax type.
· Suspension of the Vehicle Income Tax
(VIT) and Tax Stamp which are elements
of the Self Employed continued to affect
the tax type.
· Recovery of most sole proprietors from
the COVID-19 pandemic was slower
than anticipated and this led to low
withholding taxes withheld from sole
proprietors.
4.3.1.3 Corporate Income Tax (CIT)
Corporate Income Tax collection was
GH¢17,650.36 million exceeding its target of
GH¢16,477.20 million by GH¢1,173.16
million (i.e.7.1%). The tax type further
recorded a growth of 21.9 percent above the
2021 collection of GH¢14,479.64 million. This
positive deviation was due to increased
sensitisation and compliance activities that
enabled companies to take advantage of the
penalty and interest waiver provision under
the Penalty and Interest Waiver (Amendment)
Act 2021, (Act 1073) to increase CIT revenue
collection.
4.3.1.4 Mineral Royalty
The total tax collected amounted to
GH¢1,796.19 million. The growth in revenue
was 31.2 percent above the 2021 collection of
GH¢1,369.04 million. This tax handle
recorded a negative deviation of GH¢ 777.85
million (i.e. 30.2%) due to low production.
4.3.1.5 Domestic VAT
Domestic VAT collection was GH¢8,963.92
million representing GH¢13.77 million
(i.e.,0.2%) above the targeted amount of
GH¢8,950.15 million. A growth rate of 29.8
percent was recorded over the 2021
collection of GH¢6,905.22 million. Domestic
VAT contributed 11.8 percent of total tax
revenue. The positive deviation recorded in
the year may be explained as follows:
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· Strategies such as VAT invigilation,
mystery shopping, vigorous
compliance and enforcement
measures contributed to the
performance of this tax type.\
· The depreciation of the cedi coupled
with the higher than anticipated
inflation recorded in the year 2022, led
to a significant increase in the prices of
goods and services hence the positive
deviation.
4.3.1.6 Domestic Excise
Domestic Excise revenue as at the end of
2022 was GH¢604.82 million. This amount
fell short of its target of GH¢670.88 million by
GH¢66.07 million (i.e., 9.8%). The amount
collected also represents a growth rate of 14.9
percent over the 2021 collection of
GH¢526.48 million. Domestic Excise's share
of total tax revenue was 0.8 percent.
4.3.2 Trade Taxes
4.3.2.1 Import Duty and Levies
Revenue for the year amounted to
GH¢10,139.39 million, recording a positive
variance of GH¢1,566.11 million or 18.3
percent. Consequently, an excess collection
of GH¢3,267.71 million representing a growth
rate of 47.6 percent was recorded over the
2021 collection of GH¢6,871.67 million. The
contribution of Import Duties and Levies to the
total tax revenue collection was 13.4 percent.
4.3.2.2 Import VAT
Import VAT collection for the year under
review was GH¢6,824.72 million. This figure
exceeded the targeted amount of
GH¢6,452.78 million with a positive deviation
of GH¢371.94 million representing 5.8
percent.
However, the collection recorded a high
growth rate of GH¢1,967.68 million (40.5%)
against the previous year's collection of
GH¢4,857.03 million. Import VAT contributed
9 percent to the total tax revenue collection in
2022
4.3.2.3 Petroleum Excise and Levies
Petroleum Excise and Levies' collection was
GH¢2,187 million representing a negative
deviation of GH¢317.23 million or 12.7
percent of its target of GH¢2,504.34 million.
However, this performance represents a
growth rate of 3.6 percent over the 2021
collection of GH¢2,267.68 million.
4.3.3 Analysis of Trade Taxes
The estimated volume of imports needed to
meet CIF for the period of January to
December 2022 was achieved.
Target CIF for the period was Gh¢69,718.97
million, while actual CIF recorded was
Gh¢73,436.56 million, indicating a positive
deviation of Gh¢3,717.59 million or 5.3
percent. See Table 4.5 for the actual and
target CIF for 2022.
Out of the GH¢73,436.56. million goods
imported into the country, 69.7 percent
contributed to the revenue mobilized for the
year 2022, 30.3 percent of the total imports
did not yield any revenue and this comprised
the zero-rated and goods cleared under the
exemption regime. Figure 4.5 shows the
percentage taxable CIFs from 2020 to 2022.
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Table 4.5: Comparison of Actual and Target CIF – 2022
Source: GRA 2022 Tax Revenue Report.
Figure 4.5: Percentage taxable CIF
Imports cleared on exemption also affected
revenue mobilisation as they did not contribute
to revenue mobilisation and accounted for
24.4 percent in the year 2022. This is an
indication that imports in the exemption
category increased as compared to the same
periods in 2020 and 2021.
The lower tax rate bands of Zero (0%),
Exempt, and Five percent (5%) recorded an
aggregate high figure of GH¢50,935.4 million
representing 69.4 percent of the total CIF for
the period under review.
This indicates that most imports into the
country were registered under these bands
instead of the higher tax bands which would
have translated into more revenue. Table 4.6
shows the details of the values of goods
admitted to the various import duty rates from
2020 to 2022 whereas Figure 4.6 gives a
pictorial view of same.
Table 4.6: Comparative Analysis of Values of
Imports Admitted at Various Import Duty Rates
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Figure 4.6: Values of Imports admitted at various Import Duty Rates.

Table 4.7 details the analysis of the categories of the various exemptions regime/ authority, the
CIF value of goods imported, and the revenue exempt thereof for the periods 2020 to 2022.
Table 4.7: Analysis of Exempt Goods: 2020 – 2022

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Source: GRA 2022 Tax Revenue Report
In the 2022 fiscal year, some overarching
factors that influenced the performance of
revenue from trade taxes were:
4.3.3.1 Revision of Freight for General
Goods
The upward revision of freight charges on
goods from Asia contributed significantly to the
revenue performance. Ghana Customs uses
Cost, Insurance, and Freight (CIF) as the duty
base and any adjustments in the base will
affect the revenue generated since the import
revenue rates are applied ad valorem.
4.3.3.2 Partial Reversal of the Discount
Policy/ Revision of Reference Values
The partial reversal of the Discount Policy
(benchmark values) is another reason for the
performance of the trade taxes. Government
in April 2019 announced a 50% discount for
general goods and a 30% discount for used
vehicles as a measure to reduce the cost of
doing business in Ghana. This policy was
revised after series of engagements with the
Association of Ghana Industries (AGI) and the
Ghana Union of Traders' Association (GUTA).
The discount for general goods was reduced to
30% and that for used motor vehicles to 10%.
4.3.3.3 Effect of the Cedi depreciation
The exchange rate affects the revenue
mobilized for trade taxes. Importers make
declarations to customs in the currencies of the
countries the purchased goods originate.
Customs assesses the goods in the various
currencies and then applies the prevailing
exchange rate.The sharp depreciation in the
Ghanaian cedi to the dollar in the last five (5)
months of 2022 positively affected the revenue
performance.
4.4 Comparison of Tax-to-GDP Ratio of
selected West African Countries
The unweighted tax-to-GDP ratio for thirty-one
(31) African Countries averaged 16.0 percent.
This figure was below the average of 24 Asian
and Pacific economies which recorded 19.1
percent, Latin America and Caribbean 21.9
percent, and OECD 33.5 percent. The
breakdown of selected West African countries
is shown in Figure 4.7.
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Figure 4.7: Comparison of Tax-to-GDP ratio

Source: Revenue Statistics in Africa, OECD/ATAF/AUC 2022

The contributions of the various tax heads to total tax revenue for economies in the ECOWAS sub-region are
shown in Figure 4.8:

Figure 4.8: Percentage (%) contribution of different

Tax Heads to Total Tax Revenue in the ECOWAS Region

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CHAPTER 5:

Organisational
Performance

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This chapter summarises key achievements of policies and initiatives implemented within the year.
5.1 Taxpayer Population
The total number of registered taxpayers (TIN Holders) stood at 19,408,646. The details of
registered taxpayers are shown in the table 5.1 below:

Table 5.1: Update of Taxpayer Population

5.2 GRA and NIA Harmonization Project

The TIN-GUIN Project was executed by introducing multiple channels such as Mobile Apps, USSD
and Bulk SMS functionality to enable taxpayers link their Ghana Card to the TIN Database and
GITMIS Application. The key objective of the Project was to use the National Identification
Authority (NIA) Ghana Card Unique Identification Number as the basis for the Ghana Revenue
Authority (GRA) Taxpayer Identification Number.
Table 5.2: NIA Database matched to existing TINs

5.3 Active Taxpayer Population

The breakdown of active taxpayer population as at the end of 2022 is shown below:

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5.4 Return Filing Compliance by Tax Types

The filing rate by tax type is shown below:
Table 5.4: Filing Rate by Tax type - 2022

Source: GRA 2022 Tax Revenue Report

5.5 Analysis of Debt Stock

Total tax outstanding at the end of December, 2022 stood at GH¢5,643 billion as compared to
GH¢4.826 billion recorded in 2021 i.e. a recovery rate of 23.60 percent as against 20.87 percent in
2021. This relative increase was achieved as a result of various enforcement measures executed.

Out of the total debts, GH¢1,005 billion (17.81%) is made of general debt that the Authority uses
the available enforcement tools to manage while GH¢4,637 billion (82.19%) is being managed by
external lawyers and the Large Taxpayer Office (LTO).
Table 5.5: Analysis of the Overall Debts

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Figure 5.1: Analysis of Debt
5.6 Post Clearance Audit (PCA) DTRD &
Customs
A total amount of GH¢107.06 million was
recovered from all PCA Customs and PCA
DTRD audits. This amount includes
GH¢81.92 million recovered from PCA
Customs debt.
5.7 Customs Debt – Oil Marketing
Companies (OMCs) and Petroleum Debts
An amount of GH¢148.21 million in respect of
petroleum debts was recovered from Oil
Marketing and Insurance companies.
5.8 Invigilation
As a means of ensuring that all registered
taxpayers comply with the issuance of the
Commissioner-General's invoice as well as
their preparation and submission of VAT
returns, tDMCE in collaboration with TSCs
conducted invigilation of specific sectors
including hotels, restaurants, shopping malls,
manufacturing companies etc.
5.9 Compliance/ Educational Visits
To ensure that all taxpayers comply with the
provisions of the tax laws, visits to taxpayers to
ascertain their levels of compliance and also
to educate them where necessary, were
carried out.
A total of one hundred and seven (107)
taxpayers were visited within the Greater
Accra Region.
5.10 Event/ Entertainment Monitoring
The monitoring of one hundred and sixty-eight
(168) events/entertainments in Accra and its
environs recorded total assessments of GH¢1.1
million out of which GH¢744,777.76 (67.73%) was
recovered.
5.11 Swoop
In the course of the year, swoops were carried out
on eleven (11) taxpayers. Out of this number,
audits have been completed on four (4) and
assessments raised amounted to GH¢6.20 million.
5.12 Escalated Cases
To reduce the debt stock, one hundred and forty-
nine (149) cases were escalated from the various
Area Offices. A total amount of GH¢257.85 million
was recovered.
5.13 Post Clearance Audit (Customs Audits)
Total revenue recovered from the various Post
Clearance Audits amounted to GH¢497.52 million.
This is made up of a total short collection of
GH¢141.60 million as well as a pecuniary penalty
component of GH¢355.92 million.
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5.14 Post Event / Monitoring and Surveillance Activities

5.14.1 Profiled Declarations:
Declarations profiled and analysed were 11,968. Out of the total Bill of Entries (BOEs) analysed and profiled,
1,631(13.63%) were tagged for examination. 137 BOEs were found with infractions as follows:

Table 5.6: Types of Infraction

5.14.2 Revenue Accrued

Total revenue assessed amounted to GH¢49.67 million. This comprised a total short collection of
GH¢14.66 million and total penalty of GH¢30.39 million. In addition, audit conducted on cancelled
declarations resulted in a total short collection of GH¢2.72 million and an accrued penalty of
GH¢1.9 million.

5.14.3 Domestic Tax Revenue Audits

Audits were conducted and reports were issued on 77 companies and businesses from various
sectors. Total revenue of GH¢82.45 million was realised. The breakdown is as shown in the table
below:

Table 5.7: Summary of Domestic Tax Revenue Assessments

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5.15 Processing of Applications for the Waiver of Penalties

The Penalty and Interest Waiver (Amendment) Act, 2021 (Act 1073) and the Penalty and Interest
Waiver Act, 2022 (Act 1081) were in force during the year under review. GRA Administrative
Guideline Number GRA/AG/21/0001 required applications for Customs Penalty and Interest
Waivers to be submitted to the office of the Deputy Commissioner – PCA for processing and
onward submission to the Commissioner, Customs Division. Subsequently, 124 and 255
applications under Act 1073 and Act 1081 respectively were processed.

5.16 Import Declaration Forms (IDFs) Audits

The Authority intensified collaboration with Financial Intelligence Centre (FIC), Economic and
Organized Crime Office (EOCO) and Ministry of Trade and Industry (MOTI) on a special exercise
to reconcile funds transferred to foreign suppliers to pay for the supply of goods using the Import
Declaration Forms submitted to the banks, with the relevant Import / Customs Declarations. The
objectives of the exercise were to check money laundering, non- disclosure of import values to
Customs and under- declaration of import values.

5.17 Taxation of Electronic Commerce (E-commerce)

Seventy-three (73) taxpayers were registered under the taxation of E-commerce initiative. To
promote voluntary tax compliance various engagements including tax education, outreach
through bilateral engagements, email messages were carried out. Tax revenue generated is
shown below:
Table 5.8: Revenue from E-commerce

5.18 Tax Audit and Quality Assurance

The following highlights the major successes of tax audit and quality assurance activities:
· Raised assessment on 51 Taxpayers totaling GH¢99.05m using 3rd Party information (i.e
Withholding VAT Returns & Controller and Accountant General Department payments).

· Completed 36 special audit and investigation cases and raised an amount of GH¢143.25
million and USD3.29 million as liabilities.

· Assisted in auditing of three (3) Independent Power Producers (IPP). Assessment raised
amounted to USD 92.7 million & GH¢298.66million.

· Completion of the first phase of the third-party data exchange with agencies such as
KelniGvG, Electricity Company of Ghana (ECG), DPC and National Identification Authority
(NIA). Exchange of data with Social Security and National Insurance Trust (SSNIT) is at
the Application Programming Interface (API) testing stage.

· Enforcement of tax audit quality assurance standards across the audit universe.

· Enforcement of tax audit quality assurance standards across the audit universe.

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· Evolved a Business Intelligence (BI) dashboard to identify High Net Worth Individuals
utilising import data with National Insurance Commission (NIC) and electricity
consumption data as a lead for auditors for High Net Worth Individuals.

5.19 Taxation of High Net Worth Individuals (HNWIs)

The HNWO assessed taxes amounting to GH¢267.39 million from the various sectors in which
HNWIs operate. The total revenue collected was GH¢213.84 million representing 79.97 percent of
the total assessments raised. An analysis of taxes paid by HNWIs according to the various
sectors is detailed below:

Table 5.9: Tax Revenue generated from HNWI

5.20 Preventive Operations

Preventive operations covered anti-smuggling patrols, snap checks, mounting of barriers,
searching and rummaging of conveyances. These activities were undertaken together with its
specialised units such as National Vehicle Task Force, the Revenue Monitoring Unit (RMU),
Rapid Deployment Team (RDT), Vehicle Examination Verification and Assessment (VEVA),
Customs Counter Terrorism Unit (CCTU) among others. Revenue realised from arrests and
interceptions, detentions and seizures are as below:
Table 5.10: Preventive Operations

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5.21 Infrastructural Projects

Table 5.11: GRA Property Portfolio Mix

5.21.1 Completed Projects

5.21.1.1 Major Projects
· First phase - Rehabilitation and Remodeling of Ghana Revenue Authority Office Block at
VAT House, Ring Road Central-Circle

· Construction of Akanu fence wall and completion of one bedroom

· (12 Units) accommodation at Atuna (1st phase completed)

· Remodeling and extension of Legon TSC

· Rehabilitation of Takoradi TSC

· Renovation of the office block - Hohoe TSC

· Renovation of Management block of flats at East Cantonments and renovation of

Adabraka TSC

· Key office structures required to support DTRD Office Restructuring agenda were secured,
set up, furnished and operationalized within the required time frame.

5.21.1.2 Minor Projects

Forty-Two (42) minor projects were awarded, out of which thirty-five (35) have been completed and
handed over to GRA.
5.21.2 New acquisitions (Rentals)
· Tamale East TSC
· Kwadaso TSC

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5.21.3 Projects Awarded on Contract

A total of seven (7) major projects were awarded to contractors in 2021 out of which two (2) were
completed in 2022 and the rest are ongoing. These include:

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5.22 Total Number of Vehicles and Motor Bikes

GRA has a total number of 706 vehicles and 244 motorbikes. Of this number, 279 vehicles and 67
motorbikes were procured and distributed within the period under review. The average vehicle per
operational office is two (2).
5.23 Conversion of Code of Ethics into e-learning Module
To ensure that Staff conform to the tenets of the GRAs Code of Ethics, an e-learning module was
developed. Staff were urged to undertake the course. About 3,000 took the course and successful
and were issued certificates.
5.24 Customer Experience
The activities below were undertaken to enhance customer experience:
· Customer Satisfaction Survey
A Customer Satisfaction Survey conducted by Geopoll in 2022 showed that 71 percent
of taxpayers were satisfied with the service they received from GRA.

· Compliance with public sector service delivery standards

The Office of the Head of Civil Service required every public institution to publish
Customer Service Charter. The Authority complied with the directive and has
consequently developed and published the GRA service delivery standards Charter.

· Complaints Resolution
Improvement in customer service delivery led to 99.5 percent resolution of complaints
from the call Centre.

· Staff Engagement
Engagements were held in all Taxpayer Service Centres and Customs Collections in
Greater Accra, Volta, Oti, Upper West and Savannah Regions. These engagements
were geared towards the development of customer-centric staff
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CHAPTER 6:

Information and
Technology Achievements

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The central focus of the Transformation Agenda is
the use of technology to provide multiple channels
of delivering robust e-services to GRA
stakeholders. The objectives are to improve
decision making backed by data analytics and the
provision of paperless business operating
environment. To achieve these, the Authority
embarked on the following initiatives:
6.1 Networking of GRA Offices Countrywide
Extensive work was carried out in connecting all
GRA's offices to the new Data Centre. The work
which included trunking, cabling, racking and
switching has been completed for 244 offices. Out
of this figure, 14 offices as part of the pilot phase
have been connected to the new Data Centre with
the migration of the remaining offices to go live by
the end of January 2023.
The expected benefits from the upgrade of GRA's
network infrastructure are improved intra
communication and collaboration within GRA,
resilient network infrastructure, improved
productivity and revenue mobilisation and better
customer experience among others.
6.2 Automation of Workflows for Key Support
Functions
Departments were engaged in order to document
and standardize their processes with the aim of
eliminating manual processes. This was to reduce
turnaround time in some key functions, while
enabling staff experience a seamless and efficient
way of having their requests speedily attended to
with built-in digital feedback. Digital-based
workflows were automated in the following areas:
· Incidence Reporting
· Prosecutions
· Vehicle /Fuel Requisition
· Performance Management
· Leave Request
· Loan Request
· Workshop Manager
· Promotions Interview
· Stores Management
· Facilities Management
6.3 Digitisation of Performance Management
360
The digitised performance management system
known as Performance Management 360 went live
with standardized processes. The new system
considers all the relevant stakeholders including
internal supervisors, office peers and external
customers such as taxpayers in assessing
individual performance of staff, i.e. a 360 view of
staff performance vis-à-vis work targets for the
year. This has enabled staff to track and evaluate
performance targets with their supervisors
electronically.
6.4 Roll Out of WCO Container Targeting
System
The Authority with support from the WCO and the
US Customs & Border Protection Agency deployed
a Container Targeting System at the Data Centre.
The System which was integrated with the
Integrated Customs Management System
(ICUMS) was set up to Risk Profile all Sea or
Maritime Manifests that arrived at the Ports. This
was to assist the Customs Division to target and
flag high risk cargo entering Ghana for the purpose
of protecting Government revenue and minimize
the importation of dangerous and illegal goods.
Training was organized for all relevant Customs
staff and the System is now operational.
6.5 Electronic Tax Clearance Certificate (E-
TCC)
The Domestic Tax Revenue Division (DTRD)
developed and standardized the processes
Taxpayers go through in applying for Tax
Clearance Certificates.
Workshops were held to fine tune the processes
with relevant stakeholders.
· Tax Clearance Certificates (TCC) can be
obtained online without physically visiting
any GRA office.
· The system is transparent and the
taxpayer can track applications online.
· The validity of a TCC can be checked
online to prevent forgery or faking of
TCCs.
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6.6 Status of GRA Ghana.Gov Tax App
Ghana Integrated Tax Management Information
(GITMIS) was integrated with the Ghana.Gov.
Mobile App. Taxpayers can now use this solution to
interact with the GRA on taxpayer services such as
filing of tax returns and payment.
6.7 Cashless Policy
The implementation of this policy initiative which
began in 2021, involved systems for payment of
taxes that were integrated with the Ghana.gov
Application to enable taxpayers pay their taxes
online and through the banks. To enhance the
efficiency of the system, a module for accurate
reconciliation and correct reporting of all online
payments of Government Revenue was added in
2022. The benefits are:
· Taxpayers pay their taxes online and at the
banks without visiting any GRA office.
· Taxpayers effectively pay for taxes using
the Mobile Money Platform, Mobile Apps
and USSD free of any e-Levy charges.
· The availability of multiple channels for
payment of taxes.
6.8 Integrated Tax Administration System
(ITAS)
GRA is expected to have single Integrated Tax
Administration System that caters for all tax types
in line with international good practice.
Implementation of the system would involve
extensive re-engineering of processes and
migration from existing systems. Bids were
successfully evaluated based on Request for
Proposal (RFP).
6.9 Deployment of New Data Centre
The new Data Centre provides the foundation for
all systems and applications that will be deployed
by GRA. The Data Centre currently hosts core
GRA online solutions.
The new Data Centre provides the following:
· Centralised management of the core tax
database and application system with an
active replication from the Primary Site to
the Disaster Recovery Site.
· Hosting and providing a platform for the
exchange of international tax data through
the common reporting standard, with the
Global Forum.
· Hosting back-end core networking and
security systems to effectively manage the
Authority's existing connectivity between
the TSCs, Customs and other GRA offices
to the Data Centre.
· Hosting enterprise Kaspersky's anti-virus
system to securely manage end devices
directly and indirectly accessing the
internet.
6.10 E-Levy Implementation
The objective of the Project was to improve tax
revenues by tapping into fast-growing digital
financial services (DFS). The scope of
implementation covered the following:
· Mobile Money transfers done between
accounts on the same EMI
· Mobile Money transfers from one account
on one EMI to a recipient on another EMI
· Transfers from bank accounts to mobile
money accounts
· Transfers from mobile money accounts to
bank accounts
· Bank transfers on an instant pay digital
platform or application originating from a
bank account belonging to an individual
subject to a threshold to be determined by
the Minister.
The solution went live in May 2022 after extensive
stakeholder engagement with the Charging
Entities (Electronic Money Issuers (EMI), Payment
Service Providers, Banks, Specialized Deposit-
Taking Institutions and other Financial Institutions.
6.11 Data Warehouse & Analytics Project
GRA's Data Warehouse (DW) which is hosted on
GRA's Azure Tenancy was officially handed over in
May 2022. The System was integrated with GRA's
Core Tax System (GITMIS & ICUMS) and other
relevant stakeholders for the purpose of risk
profiling and having a 360-degree view of the
taxpayer.
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The objective of the project was to empower DTRD
and Customs Division conduct targeted Audits of
non-compliant Taxpayers, guide Tax Policy and aid
in decision making.
Data from ICUMS has successfully been
integrated with the Core DTRD Application,
GITMS3. Work is currently ongoing to link the
GUIN Portal to the Data Warehouse to expand the
scope of data to be used for analysis and
compliance purposes.
.
6.12 E-VAT Pilot Implementation
In furtherance of driving compliance with VAT
obligations, a system has been developed with
selected identified taxpayers for GRA to receive in
real time VAT invoices issued by taxpayers.
Extensive requirement gathering, sensitization
activities and workshops were carried out with all
relevant stakeholders. The system underwent
User Acceptance Testing (UAT) to Go-Live. An
initial 50 taxpayers using their own computer-
generated invoices were on-boarded for the pilot
phase
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CHAPTER 7:

Human Resource

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7.1 Staffing
The total number of staff as at the end of 2022 was 7,275 compared to 7,590 in 2021. The
2022 figure represented a staff decline of 4.15 percent (304) below the 2021 figure. The
senior staff category reduced by 4.21 percent in 2022 whilst Management increased by
8.81 percent. The breakdown of staff strength by category is shown in the table below

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7.2 Staff distribution by Gender

The total staff strength of 7,275 is made up of 4,946 (68%) and 2,329 (32%) male and female
respectively. The breakdown by division is below:

7.3 Promotions
The total number of staff promoted was 1,849. This was made up of 136 (7.35%) Management, 903
(48.84%) Senior and 810 (43.81%) Junior officers.

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7.5 Training and Workshops

Leadership / Managerial Training:

· Training was organised for 70 Deputy Commissioners and Assistant Commissioners on

Coaching and Mentoring for Successful Leadership.
· Training was organised for 333 Chief Revenue Officers on Effective Managerial Skills.

Technical Training:
Domes c Tax Revenue Division
A total of 1,432 officers (including Area Directors, TSC Heads, Unit Heads and Senior Officers) in
the DTRD were trained in technical operations such as:
· Overview of Transfer Pricing
· Desk Audit, and Mechanics of VAT
· Recent Amendments in VAT and Income Tax Acts
· Operations of Permanent Establishment
· Tax Treaties
· Changes in TPS & CEDM Operational Manuals

Customs Division
A total of 1,306 Officers were trained in Customs Operations and Preventive. Areas covered
include:
· Classification and Valuation
· Trade Facilitation
· Imports and Exports Procedures
· Rules of Origin
· AfCFTA
· Petroleum
· Post-Clearance Audits
· Anti-Smuggling Techniques
· Defence Management
· Signals
· Customs Procedures Code
· Customs Regimes

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CHAPTER 8:
Communication
and Social Action

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8.1 Corporate Social Responsibility (CSR)
Giving back to the community within which the
Authority operates, provides an opportunity
for local communities to understand the basis
of taxation and benefits of paying taxes.
CSR creates the platform through which the
Authority engages with the communities,
undertaking other sponsorship and
mentorship activities to create buy-in for
programmes and engender voluntary
compliance.
The following CSR activities were carried out
in the year:
8.1.1 Sponsorship
· Donation of GH¢10,000.00 to the
Ghana Heart Foundation to help
improve work of the Foundation.
· Donation of GH¢50,000 to the
Appiatse Support Fund to complement
Government's efforts to rebuild the
Appiatse community
· Donation of office equipment to the
Judicial Service
8.1.2 Participation in Events
· GRA participated in the 26th Ghana
International Trade Fair on the theme
''Promoting Entrepreneur Trade for A
Refunding Economy”. Staff assisted
exhibitors to file returns and pay their
taxes online.
· A Facility Tour was organized for about
60 students from University of
Professional Studies, Accra (UPSA).
They were educated on the
importance of taxation and their tax
obligations.
8.1.3 GRA Mentorship Programmes
· A Ta x q u i z w a s o r g a n i s e d f o r
Accounting Students from the
University of Ghana, Pentecost
University and University of
Professional Studies, Accra (UPSA).
The University of Ghana emerged
winners of the quiz and were awarded
a cash prize and trophy, while the 2nd
and 3rd winners had cash prizes.
· The Authority participated in the 2022
Civil Service Week and used the
platform to assist the general public to
understand their tax obligations.
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CHAPTER 9:
Outlook
for 2023

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9.1 Tax Revenue Projections

The Authority is budgeted to collect a total tax revenue of GH¢105,998.73 million for the 2023 fiscal
year which represents 40.0 percent growth over the GH¢75,706.34 million collected in 2022. The
2023 budget is expected to yield a Tax-to-GDP ratio of 14.6 percent.

Table 9.1: Growth Analysis of 2023 Tax Revenue Target

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9.2 Revenue Measures for Fiscal Adjustment

· Revision of Income-based Taxes
· Removal of selected VAT Exemptions
· Revision of Excise Taxes for selected items
· Complete removal of Discount on Benchmark Values
· Undertake E-Levy reforms to close loopholes/leakages, improve patronage & enhance
yield
· Implement the Unified Property Rate collection
· Review the National Fiscal Stabilisation Levy (NFSL) to include all entities
· Introduce a windfall Tax for the Extractive Sector (NFSL for Mining Companies
(Ghs318.2mn) and for Oil & Gas Companies(273.5mn)
· Intensify the implementation of the VAT E-Invoicing system to enhance compliance
· Increase VAT rate from 12.5% to 15% (Increase by 2.5 ppts) with NHIL and GETFund
straight levies maintained at 2.5% each and earmarked proceeds for Road Construction
· Enhance Rent Tax Compliance
· Pursue Additional Oil Entitlement (AEO) in relation to the Jubilee Field
· Revise Income Tax to exclude unrealised exchange losses from deductions and ensure
that realised exchange losses on capital assets are capitalised
· Harmonisation of Royalty Rates for mining companies

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CHAPTER 10:
Financial Report

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NOTES TO THE FINANCIAL STATEMENTS

1.1 General StatementThe Ghana Revenue Authority is a covered entity preparing General
Purpose
Financial Statements in accordance with generally accepted accounting
principles.In preparing the Financial Statements, the Authority takes cognizance of the 1992
Constitution and the PFM Act 2016. Revelevant portions of the PFM Regulations, 2019 (L.I 2378)
have been applied to the preparation of these Financial Statements.

1.2 Policy Statement on IPSAS adoption

In preparing the financial statement, the Authority applied International Public Sector Accounting
Standards (IPSAS Accrual basis) which has been adopted by the Controller And Accountant
General who is the Chief Accounting Officer of Ghana.
1.3 Basis of PreparationThe 2022 Financial Statements have been prepared on Accrual Basis of
accounting
where income is recognised when retention releases are issued and expenditure is
recorgnised when goods or services have been delivered.

1.4 Comparative Figures

Where necessary, comparative figures have been adjusted to conform to
changes in presentation in the current year.The Financial Statements are presented in Ghana
Cedis and all values are rounded
to the nearest Ghana Cedi.(2) Inventories
The Authority's inventory is mainly value books that held for resale. Inventories are stated at cost
for the year. Cost is determined using the first-in, first-out (FIFO) method.

(3). Debtors
The Authority's debtors comprised of staff loans and accounts receivables. Debtors are shown at
their book values.
(4) Cash and Cash Equivalents
Cash and cash equivalents are carried in the statement of financial position at cost. Cash and cash
equivalents comprise cash on hand and balance with banks.

(5) Creditors
Creditors are obligations to pay for goods and services that have been acquired in the ordinary
course of business from suppliers. Creditors are recognized at fair value.

(6) Borrowing
Borrowings are recognised at the transaction price (that is the present value of cash payable to the
lender, including transaction costs). Interest expense is capitalised and included in the cost of
asset acquired and shown in the statement of financial position. Borrowings are classified as
current liabilities.

(7) Revenue
Ghana Revenue Authority (GRA) receives retention of not more than 3% of revenue collected in
accordance with section 21(2) of Ghana Revenue Authority Act 2009 (Act 791). Revenue is

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(8) Grants
Grants are assistance provided by government and other donor partners by transfer of resources
(either monetary or non-monetary) to the Ghana Revenue Authority.
Grant related to assets are presented by deducting the grant from the asset's carrying amount.
Grant relating to income is reported as part of other income.

(9) Property and Equipment

Items of Property and equipment are stated at historical cost less accumulated depreciation and
any accumulated impairment losses. Historical cost includes expenditure that is directly
attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management. The cost of self-constructed assets includes
the cost of materials and direct labour and any other costs directly attributable to bringing the asset
to a working condition for intended use.

Freehold land is not depreciated. Depreciation of other assets is charged so as to allocate the cost
of the assets less their residual value over their estimated useful lives, using the straight-line
method.

Property and Equipment acquired during the year are capitalized and shown in the Balance Sheet
and depreciation is not to be charged in the year of acquisition. The fixed assets capitalized for
previous periods are depreciated using the straight line method with the following rates;

(10) Intangible Assets – Computer Software

Costs associated with maintaining computer software programmes are recognised as an expense
as incurred. Development costs that are directly attributable to the design and testing of
identifiable and unique software products controlled by the Authority are recognised as intangible
assets when the following criteria are met:
i. it is technically feasible to complete the software product so that it will be available for use;
ii. management intends to complete the software product and use or sell it;
· there is an ability to use or sell the software product;
· it can be demonstrated how the software product will generate probable future economic
benefits;
· adequate technical, financial and other resources to complete the development and to use
or sell the software product are available; and

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iii. The expenditure attributable to the software product during its development can be reliably
measured.
Directly attributable costs that are capitalised as part of the software product include the software
development employee costs and an appropriate portion of relevant overheads.
Other development expenditures that do not meet these criteria are recognised as an expense as
incurred. Development costs previously recognised as an expense are not recognised as an asset
in a subsequent period.
Computer software development costs recognised as assets are amortised over five years.

(11) Foreign Transactions

Transactions denominated in foreign currencies have been translated into the local currency
(Ghana cedis) at the rate of exchange prevailing at the date of the transactions. Balances at
balance sheet date are stated at rates at the balance sheet date.

(12) Employee Benefits

The Authority operates a defined benefit and defined contribution pension schemes. The
defined benefit plan defines an amount of pension benefit that an employee will receive on
retirement, dependent on grade and years of service.
The defined contribution scheme is funded through payments to trustee-administered funds on
a monthly basis. The Authority pays fixed contributions to the scheme.
The Authority's contributions to these pension schemes are charged to the income statement in
the year in which they fall due.

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