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.

Common Issues

  • 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

The presenters also discussed how to stay compliant. To learn more, here is a link to the full webinar by SCG Chartered Accountants.