SCG Chartered Accountants recently held a webinar titled “Navigating Withholding Tax Audits”. The presenters discussed:
- Common issues that arise from Withholding Tax Audits.
- Challenges faced by taxpayers
- Ways to stay compliant.
Below is a summary of the discussion.
- Failure to withhold from payments made to third parties
- Application of wrong rates, especially payments to non-residents
- No evidence of withholding tax exemption letters from suppliers
- Late filing of WHT returns.
Some Practical Challenges of Complying
- Purchases from the open market are difficult to withhold on when making payments
- Suppliers grossing up WHT amounts on invoices to increase purchase prices:
- Inability to identify expenses that are not subject to WHT but included in the books:
- Individual expense items below the WHT threshold of Ghc 2,000