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ENHANCING THE GIFT TAX SYSTEM: THE CASE OF GHANA
Carl
-
Reindolph Asante Dr. Samuel K. Frimpong
Sik
kim Manipal University,
Ghana.
Gift tax is amongst the many tax types which provide a source of income for the government
of Ghana to meet some national expenditure. However, since its inception in 1975, it has
generated very low revenue, the highest bei
ng GHc 121,691 in 2011. Therefore, the
study investigated the loop holes in the administrative processes of the gift tax system. A
descriptive survey was used as the research design for the study. Data were collected through
the administra
tion of questionnaires and interview guide from 50 tax officials and 100
taxpayers. The tax officials were sampled from Adabraka and Mataheko Small
Taxpayers’ Offices (STOs) whilst the taxpayers were sampled from some selected
organ
isations within the Accra metropolis.
Based on the responses from the interview and questionnaires, it was found that taxpayers are
unaware of taxes paid on gifts and that the tax laws have not been properly enforced. Also,
tax reforms have had very sig
nificant bearing on tax revenue. Further, taxpayers are
unsatisfied with the use of tax revenue. Finally, the tax authorities have challenges in
identifying individuals who receive gifts. It is recommended that there should be massive tax
education, the ta
x authorities should coordinate with other institutions where gifts are
channeled and there should be proper law enforcement. In addition, there must be
strong political will and commitment of government to enhance the effectiveness an
d
efficiency of tax administration and there should be some motivation for tax officials.
Finally, revenue administrators must be involved in the process of tax policy
formulation or review.