Ismail Ibn Ibrahim, Deputy Managing Partner at Ali-Nakyea and Associates, shared valuable insights while speaking on the topic “Navigating the tax maze as an SME” during the Citi Business Festival on-air series on Tuesday, June 13, 2023.
In his discussion, he expressed reservations about the introduction of new taxes and raised concerns about the disregard for accounting principles in pursuit of additional revenue, potentially causing harm to many businesses.
Ibrahim highlighted a particular point of contention related to the withholding of taxes when selling assets.
According to him, one of the amendments suggests that taxes should be withheld during asset sales. However, there is also a legal provision stating that if an asset is replaced within a year, no taxes should be paid. This he says poses a challenge in terms of balancing these two aspects and determining the appropriate tax obligations.
To illustrate his point, Ibrahim used a metaphorical scenario involving a farmer with 100 milking cows.
He explained that if the farmer chooses to milk only 10 of the cows due to the distance and increased frequency of milking, it may not yield the desired results.
By drawing this analogy, he emphasized the need to consider the wider implications of tax policies and not solely focus on exerting pressure on the same group of people.
Instead of piling more pressure on specific individuals, particularly businesses, Ibrahim suggested widening the tax net as an alternative approach.
This implies expanding the tax base to include more taxpayers, rather than burdening a limited group with excessive tax obligations.
By doing so, the tax system could become more equitable and efficient, he noted.
The entire month of June is dedicated to business on Citi TV and 97.3 Citi FM.
The Citi Business Festival is an extensive program of business events and on-air activities providing inspiration, business ideas, and information to persons who are starting, building, or growing their businesses.
The on-air series airs on the Citi Breakfast Show on 97.3 Citi FM every weekday.
Absa Bank is the main sponsor of the Citi Business Festival 2023 and is supported by MTN Momo and MTN Business Support, IT Consortium, the Ghana Investment Promotion Centre (GIPC), and GIRSAL.