INTERCLASS ASSOCIATES LTD. vs. GHANA REVENUE AUTHORITY [2016]DLCA4853

Date	2016-07-14
Suit No.	CIVIL SUIT NO: H1/114/16
Citation No.	[2016]DLCA4853

GYAESAYOR J.A. (PRESIDING)

ACQUAYE J.A.

WELBOURNE (MRS) J.A.

PETER KORNOR FOR PLAINTIFF/APPELLANT

NANA ACHIA AMOAKO FOR DEFENDANT/RESPONDENT

[2016]DLCA4853
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													<main id="main" class="content" style="min-height: 60rem" >INTERCLASS ASSOCIATES LTD. <o:p></o:p>(PLAINTIFF/APPELLANT)<span style="font-size:10.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&quot;Times New Roman&quot;;
mso-bidi-theme-font:minor-bidi"><o:p></o:p>vs.<o:p></o:p>GHANA REVENUE AUTHORITY
<o:p></o:p>(DEFENDANT/RESPONDENT)<o:p></o:p>[COURT OF APPEAL, ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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CIVIL
SUIT NO: H1/114/16&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;DATE: 14TH JULY, 2016<o:p></o:p>

</div>COUNSEL:
<o:p></o:p>PETER KORNOR FOR
PLAINTIFF/APPELLANT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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NANA
ACHIA AMOAKO FOR DEFENDANT/RESPONDENT<o:p></o:p>

</div>CORAM:
<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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GYAESAYOR
J.A.&nbsp; (PRESIDING), ACQUAYE J.A., WELBOURNE
(MRS) J.A.<o:p></o:p>

</div><o:p>&nbsp;</o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">JUDGMENT<o:p></o:p>

</div>WELBOURNE
(MRS), J.A.<o:p></o:p>The Background<o:p></o:p>Benjamin Franklin once said in 1789 that there were
only two things certain in life: death and taxes. That statement is as true
today as it was then. Equally true is the fact that generally no one enjoys
paying taxes. However, governments need taxes in order to develop. Ghana is no
exception. That is why the Ghana Revenue Authority is given the mandate to
collect as much revenue under the Tax laws that it can legitimately collect
from taxpayers. Thus one of the means of this objective is by way of tax audits
of persons including enterprises and business entities. <o:p></o:p>In furtherance of this objective, the Plaintiff/Appellant
(hereinafter referred to as the Appellant), was engaged by the
Defendant/Respondent (hereinafter referred to as the Respondent), to carry out
a tax audit of certain Companies and institutions including the Social Security
and National Insurance Trust (SSNIT). This matter is in connection with the tax
audit of SSNIT.<o:p></o:p>The agreement for the audit was a written contract
referred to by the parties as “Terms of Reference” – (Exhibit ‘A’) found on page
175-177 of the Record of Appeal. <o:p></o:p>Clause 7 of the “Terms of Reference” provides as
follows:<o:p></o:p>“Fees (1):<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;The firm will be paid a Fixed Audit Fee of
GH¢2,000.00 (Two Thousand Ghana Cedis) per audit per financial year.<o:p></o:p><o:p>&nbsp;</o:p><span lang="EN-GB" style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
mso-ansi-language:EN-GB">(2)<span style="font-style: normal; font-variant-numeric: normal; font-variant-east-asian: normal; font-weight: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: &quot;Times New Roman&quot;;">&nbsp;&nbsp; &nbsp;In addition to
that, a finder’s fee of 3% of the principal tax liability to maximum of
GH¢1,000,000.00 (One Million Ghana Cedis) assessed by the firm will be paid to
the audit firm after the auditee has agreed, in writing to the tax liability”.<o:p></o:p>At the end of tax audit on SSNIT, the Appellant
presented a report copy of which was tendered as Exhibit ‘B’ (see pages 178-182
of the Record of </main>