BEIERSDORF GHANA LIMITED vs. THE COMMISSIONER GENERAL - GHANA REVENUE AUTHORITY [2019]DLCA8828

Date	2019-12-05
Suit No.	SUIT NO.:H1/140/2019
Citation No.	[2019]DLCA8828

ADJEI J A

KWOFIE J.A

POKU-ACHEMPONG J.A

DR. KWEKU AINUSON FOR APPELLANT

MR. ODARTEY LAMPTEY FOR THE RESPONDENT

[2019]DLCA8828
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													<main id="main" class="content" style="min-height: 60rem" >BEIERSDORF GHANA LIMITED<o:p></o:p>(APPELLANT
/ APPELLANT)<o:p></o:p>vs.<o:p></o:p>THE COMMISSIONER GENERAL - GHANA REVENUE
AUTHORITY<o:p></o:p>(RESPONDENT/ RESPONDENT)<o:p></o:p><o:p>&nbsp;</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;
padding:0cm 0cm 1.0pt 0cm">

SUIT NO.:H1/140/2019&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; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;DATE: 5TH DECEMBER, 2019<o:p></o:p>

</div>COUNSEL:<o:p></o:p>DR.
KWEKU AINUSON FOR APPELLANT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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MR. ODARTEY LAMPTEY FOR THE RESPONDENT<o:p></o:p>

</div>CORAM:<o:p></o:p>ADJEI
J A, KWOFIE J.A, POKU-ACHEMPONG J.A<o:p></o:p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt;
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<p class="MsoNormal" align="center" style="text-align:center;border:none;
mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div>ADJEI,J.A:<o:p></o:p>The
Commissioner General of the Ghana Revenue Authority rendered a decision on 14th
August, 2017 with respect to tax liability of GH¢1,698,149.34&nbsp; against
Biersdorf Ghana Limited for 2014 to 2016 years of assessment . The tax assessed
by the Commissioner was based on the result of a Tax Audit for the Accounting
Period of 2014-2016. Biersdorf Ghana Limited dissatisfied with the tax
assessment filed an appeal against the decision of the Commissioner General to
the High Court. The appeal was filed on 8th January, 2018. Biersdorf Ghana
Limited was the Appellant before the High Court and the Commissioner General of
the Ghana Revenue Authority was the Respondent. The Appellant dissatisfied with
the decision of the High Court delivered on 13th July, 2018 appealed against
same to this Court on 11th October, 2018. The High Court shall be referred to
as the Court below for the purposes of this appeal.&nbsp; In this appeal, the
Appellant/Appellant shall be referred to as Appellant and the Respondent shall
be referred to as the Respondent. Simply stated, for the purposes of this
appeal and ease of reference&nbsp;the parties shall maintain their respective
designations at the court below. 
 
<o:p></o:p>The judge
at the Court below discussed all the grounds of appeal and dismissed each and
every one as unmeritorious and finally dismissed the notice of appeal filed in
the Court below as incompetent. It is upon this background that the Appellant
appealed to this Court to reverse the judgment in&nbsp;appeal determined by the
Court below. The three grounds of appeal filed against the decision of the
Court below are contained in the Amended Notice of Appeal pursuant to leave
granted by this Court on 29th May, 2019 and filed on 31st May, 2019. They are
as follows: <o:p></o:p>"A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; That
the decision of the court is against the weight of evidence.<o:p></o:p>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; That
the court erred in law by affirming the finding of Commissioner General of
Ghana Revenue Authority that royalty payments made by the Appellant to
Beiersdorf AG (BDF) pursuant to an agreement between Appellant and BDF for the
use of Nivea Brand should not be allowed as a legitimate business cost because
of the failure of the Appellant to register the said agreement with the Ghana
Investment Promotion Center before making payments under the agreement.<o:p></o:p>C. The court erred in law when it held that the
Appellant had not shown evidence of the payment of at least a fourth of the tax
amount payable".<o:p></o:p> 
&nbsp;The ground (C) of the appeal is fundamental as it goes to the root of the
appeal. The High Court dismissed the appeal as incompetent on the basis that
the appellant failed to comply with Order 54 of the High Court ( Civil
Procedure) Rules, 2004 ( C.I. 47) which conferred the procedure to be followed
by a person who is dissatisfied with a tax assessment by the Commissioner
General. The Court below held that the Appellant failed to comply with Order 54
rule 4 of the High Court (Civil Procedure) Rules, C.I. 47.&nbsp; The provision
provides as follows:<o:p></o:p>"(1)
An aggrieved person who has filed an appeal against an assessment, decision or
order of the Commissioner under rule 1 of this Order shall, pending the
&nbsp;determination of the appeal, pay an amount not less than a quarter of the
amount payable in the first quarter of that year of assessment as contained in
the notice of assessment.<o:p></o:p> 
&nbsp;(2) An appeal shall not be entertained by a court under these Rules
unless the appellant has paid the amount set out in subrule (1) of this rule. 
(3) Where the payment of tax has been held o</main>