Monday, 5 August 2013

GRA to demand tax on Stars bonuses.


For long, players of the senior national soccer team have not been made to pay taxes. But Charles Benoni Okine reports on the new turn of events as far as the payment of taxes on their bonuses is concerned.
THE Ghana Revenue Authority (GRA) has vowed to demand up to $400,000, being five per cent withholding tax on the bonuses paid to the players of the senior national soccer team, Black Stars at the 2013 African Cup of Nations (AFCON) which just ended in South Africa.
The taxes will also be slapped on all the various sponsorship packages that the team received prior to the tournament of which the Black Stars again failed to annex the ultimate in spite of the heavy sums taken from the taxpayers to meet their expenses.
Each member of the team received US$37,500 for reaching the quarter finals and an additional US$52 million for reaching the semifinals where they were kicked out.
All these amount exclude the minimum of US$400 a day they are said to have received as per diem.
According to the tax authority, it is presently awaiting the arrival of the team after which it will request from the Ministry of Youth and Sports and the Ghana Football Association (GFA), the full details of the payments made to the team as bonuses and per diem to enable it compute the necessary taxes for payment.
A highly placed source at the GRA told the Graphic Business exclusively that, the tax authority is not leaving any stone unturned to ensure that all those who deserve, by law, to pay taxes do so and the Black Stars players will not be exempted.
The resolve of the GRA this time has raised questions about why the tax authority has failed to prevail on the sports authorities to apply the law the same way it is meant for all.
As the per the 1992 Constitution, the President is the only citizen of the land who is exempted from paying taxes, a situation which leaves many wondering why the Black Stars should, either advertently or inadvertently be exempted from paying taxes on what they earn.
Some civil servants the Graphic Business spoke with expressed anger at the action of the government and the GRA for their persistent refusal to tax the Black Stars.
According to some of them who pleaded anonymity, “the government heavily taxes our meager salaries yet refuses to tax the fat bonuses of the Black Star players or any other sportsmen and women who feature in international tournaments”.
This, they described as unfortunate and unacceptable and called on the GRA to pursue the authorities to do the right thing just the same way they do to the civil servants and any other taxpayer in the country.
There were others who also argued that with the GRA now demanding from people to pay taxes on the gifts they receive, the tax authority, therefore, has no excuse to refuse to demand taxes on those who sponsor the Black Stars openly.
“The tax authorities must be fair to all and stop discriminating as far as tax collection is concerned”, the said.
The GRA has made such pledges in the past but has consistently refused to collect from the team.
The GRA is also very noted for going after sources they can easily target to collect taxes and those who refuse to honour their tax obligations are made to face distress action.
The Black Stars failed to justify why they should be paid huge bonuses as they were kicked out of the tournament at the semifinal level in their march against the Stallions of Burkina Faso.
This was in spite of the show of bias towards the Black Stars by the referee for the match who persistently frustrated Burkinabe to pave way for the Stars to win the match.
Eventually, the Black Stars were kicked out in the penalty shootout where they failed to shine again.

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