[2018]DLHC3329 • July 13, 2018 • High Court
BEIERSDORF GHANA LIMITED vs. THE COMMISSIONER GENERAL, GHANA REVENUE AUTHORITY
The appellant, Beiersdorf Ghana Limited, engaged in the importation and distribution of Nivea branded cosmetic products under a Distribution License Agreement with Beiersdorf AG, Germany. Following an audit by the Ghana Revenue Authority (GRA) for the years 2014-2016, the appellant was assessed a tax liability initially amounting to GH₵1,689,149.34, later revised to GH₵1,085,392.36 after objections and evidence of tax credits and payments. The dispute centered on the recognition of royalty payments as legitimate business costs, withholding tax liabilities on payments to distributors and trade discounts, and compliance with registration requirements under the Ghana Investment Promotion Centre Act.
read moreThis appeal stems from an audit undertaken by the respondent herein into the tax returns of the appellant herein for the accounting period of 2014, 2015 and 2016. After the said audit exercise, the respondent assessed the tax liability of the appellant at an amount of GH₵1, 689,149.34 and thereafter, requested the appellant to pay the said tax liability within a period of thirty (30) days. After notification of the tax liability, the appellant objected to the assessment and after further examination by the respondent, the liability was reviewed to an amount of GH₵1,085,392.36 after the appellant had brought to the notice of the respondent evidence of new tax credit payments claimed and also taking into consideration the payment of an amount of GH₵506,744.80 after notification of the tax liability. The Notice of Appeal, which was filed on the 8th January 2018, is brought upon, basically, three main grounds which are that: a. The finding of CGRA that royalty payments made by ...