[2018]DLHC6279 • July 31, 2018 • High Court
HON. CLEMENT APAAK {PLAINTIFF} vs. GHANA REVENUE AUTHORITY
The Plaintiff challenged the Ghana Revenue Authority's issuance of Practice Note IDT/2017/001 which extended the VAT Flat Rate Scheme (VFRS) to importers of taxable goods. The Plaintiff contended that the 2017 VAT Amendment Act (Act 948) applied the VFRS only to wholesalers and retailers, not importers, and that subjecting importers to both the standard VAT rate and the VFRS was unlawful and discriminatory. He also claimed accrued rights to deduct input VAT paid prior to the 2017 Act and sought refunds or set-offs accordingly.
read moreIt is provided for in Section 100(1) of the Revenue Administration Act, 2016 as follows: To achieve consistency in the administration of tax laws and to provide guidance to persons affected by the tax laws, including tax officers, the Commissioner-General may issue practice notes setting out the interpretation placed on provisions of a tax law by the Commissioner-General. So it came to pass that in consonance with Section 100(1), the Commissioner-General of the Defendant Authority issued Practice Note Number IDT/2017/001 on 23rd June 2017. Aggrieved by the provisions contained in the Practice Note, the Plaintiff claimed against the Defendant the following reliefs: a. A declaration that the Defendant’s purported act of extending the coverage of the VFRS to importers of taxable goods through the aforesaid Practice Note is unlawful. b. A declaration that by subjecting importers to both the VFRS and the standard rate of VAT whilst at the same time barring the said importers.....