Day: November 27, 2023

An Accra High Court has issued a landmark ruling on the tax assessment of Maersk Drillship IV Singapore, declaring that its income arising from its Ghanaian Permanent Establishment is assessable, rejecting the company’s claim of exemption under the Petroleum Agreement.

The total money involved is a substantial sum of $15.5 million ($15,513,221.16) in tax revenue.

This comprises $12.8 million ($12,805,543.20) in direct taxes and $2.7 ($2,707,607) million in indirect taxes.

Breaking down the figures, GRA has established an official exchange rate of GH?11.5668 to the dollar.

Utilizing this conversion rate, the total tax revenue of $15,513,221.16 transforms into GH?179.4 million (GH?179,438,326.513488).

The court, comprising Justices Mrs Janapare A. Bartels-Kodwo, Alex Poku-Acheampong, and Jerome Noble-Nkrumah, delivered the judgment in response to an appeal filed by Maersk Drillship IV Singapore.

The crucial issues addressed by the court included determining the party whose income was under assessment, th
e assessability of the income, and whether the income was exempt from income tax under Ghanaian law and the Petroleum Agreement.

Maersk Drillship IV Singapore contended that the assessed income was related to its business operations and, therefore, exempt from further taxation, citing provisions in the Petroleum Income Tax Act and the Petroleum Agreement.

However, the Ghana Revenue Authority (GRA) disagreed, arguing that the income in dispute belonged to Maersk Drillship IV Singapore as a distinct entity separate from its Ghanaian registered external company.

After analyzing the facts and applying the law, the High Court determined that the income in question was that of Maersk Drillship IV Singapore, a separate legal entity from its Ghanaian Permanent Establishment.

The court established that this income, remitted by its Ghanaian Permanent Establishment, is assessable under Section 3 of Act 896.

The court further clarified that under Section 3(2) (b) of Act 896, non-resident entities earning income thro
ugh a Ghanaian permanent establishment are subject to Ghanaian income tax.

Since the income in question arose from the Ghanaian permanent establishment of Maersk Drillship IV Singapore, Section 3(2) (b) of Act 896 logically applies, making the income assessable for tax under the Income Tax Act.

Regarding the exemption from taxation, Maersk Drillship IV Singapore argued that, under the Petroleum Agreement, a portion of its business income withheld by its contractor incurs no further tax liabilities.

GRA countered, emphasizing that the shareholders of Maersk Drillship IV Singapore are the ones being assessed, and branch profit taxes do not apply to the company or its shareholders.

The court clarified that the income being taxed does not pertain to Maersk Drillship IV Singapore but to its Ghanaian Permanent Establishment, a separate legal entity.

The ruling explained that the income earned by the Ghanaian Permanent Establishment is not subject to further taxes under the Petroleum Agreement when remitting pr
ofits to its parent company.

However, the court stated that a non-resident entity earning income from a Ghanaian permanent establishment is earning income as contemplated under Section 3(2) (b)(ii) of Act 896, and, therefore, Section 60 of Act 896 applies, making the income of Maersk Drillship IV Singapore from repatriated profits of its Ghanaian Permanent Establishment liable to branch profit tax.

Source: Ghana News Agency

An Accra High Court has quashed Office of the Special Prosecutor (OSP’s) report that accused two former Ghana Revenue Authority (GRA) Commissioners of wrongdoing in the famous Labianca case.

Colonel Kwadwo Damoah, a former Commissioner of GRA (Customs Division) and Joseph Adu- Kyei, a former Deputy Commissioner of GRA (Customs Division), were allegedly accused of using their positions to grant favourable tax treatment to Labianca Company, a frozen food firm owned by Jacqueline Buah Asomah Hinneh, a Council of State Member.

The two Commissioners, last year, dragged the OSP to court contending that the OSP’s report had caused damage to their reputation and same had no merit.

The court presided over by Mr Justice William Boampong at the General Jurisdiction (High Court Division) in its ruling awarded cost of GHC 10,000 against the OSP.

The court held that the OSP exceeded its mandate in making its adverse findings against the two Commissioners.

The court noted that OSP acted ultra vires by purporting to ma
ke adverse findings against the Commissioners and further publishing the adverse report in the public domain thereby subjecting the applicants (the Commissioners) to public opinion trial.

It, therefore, quashed certain aspects of the reports relating to the applicants (the Commissioners) and granted an order restraining the OSP from further investigating the two Commissioners in the matter.

Mr Bob Sanyalah, the applicants lawyer, told journalists that he was elated over the ruling of the High Court.

The two Commissioners had gone to court praying it to dismiss the investigative report of the OSP relating to activities of Labianca Company.

Col. Damoah contended that the OSP’s report was targeted at him in person and same was to ‘bring him down’.

In the case of Adu-Kyei, the OSP’s report cited him for issuing unlawful customs advance ruling leading to the reduction of intended imports between the range of five to 10 percent to Labianca.

The two disagreed with the OSP’s report and proceeded to court to con
test the findings.

GNA Court quashes OSP’s report implicating Col Damoah, another in Labianca Case

By Joyce Danso, GNA

Accra, Nov. 27, GNA- An Accra High Court has quashed the Office of the Special Prosecutor (OSP’s) report that accused two former Ghana Revenue Authority (GRA) Commissioners of wrongdoing in the famous Labianca case.

Colonel Kwadwo Damoah, a former Commissioner of GRA (Customs Division) and Joseph Adu-Kyei, a former Deputy Commissioner of GRA (Customs Division), were allegedly accused of using their positions to grant favourable tax treatment to Labianca Company, a frozen food firm owned by Jacqueline Buah Asomah Hinneh, a Council of State Member.

The two Commissioners, last year, dragged the OSP to court contending that the OSP’s report had caused damage to their reputation and same had no merit.

The court presided over by Mr Justice William Boampong at the General Jurisdiction (High Court Division) in its ruling awarded the cost of GHC 10,000 against the OSP.

The court held that the O
SP exceeded its mandate in making its adverse findings against the two Commissioners.

The court noted that OSP acted ultra vires by purporting to make adverse findings against the Commissioners and further publishing the adverse report in the public domain thereby subjecting the applicants (the Commissioners) to a public opinion trial.

It, therefore, quashed certain aspects of the reports relating to the applicants (the Commissioners) and granted an order restraining the OSP from further investigating the two Commissioners in the matter.

Mr Bob Sanyalah, the applicants’ lawyer, told journalists that he was elated over the ruling of the High Court.

The two Commissioners had gone to court praying to dismiss the investigative report of the OSP relating to activities of Labianca Company.

Col. Damoah contended that the OSP’s report was targeted at him in person and same was to ‘bring him down’.

In the case of Adu-Kyei, the OSP’s report cited him for issuing unlawful customs advance ruling leading to the redu
ction of intended imports between the range of five to 10 per cent to Labianca.

The two disagreed with the OSP’s report and proceeded to court to contest the findings.

Source: Ghana News Agency

The Monetary Policy Committee (MPC) of the Bank of Ghana on Monday maintained the policy rate at 30.0 per cent for two successive meetings.

Dr Ernest Addison, the Governor of the Central Bank, said the Committee noted that tighter financing conditions, slower growth in the manufacturing and services sectors, and China’s slower recovery were exerting some moderating influence on global economic activity.

The Governor was speaking at a press briefing after the 115th MPC meetings in Accra.

The Committee deliberated on global and domestic macroeconomic developments, including the implementation of the IMF-supported Extended Credit Facility programme for the first six months of 2023 and assessed risks to the inflation outlook.

He said earlier aggressive policy tightening by advanced economies’ Central Banks had contributed to the dampening of inflationary pressures with headline inflation decelerating in many of the economies.

He said this had led to a pause in the tightening cycle, but core inflation remain
ed high and was declining slowly due to strong labour markets.

The Governor said Central Banks were expected to maintain policy rates at high levels for much longer periods to contain the still-elevated inflation levels relative to targets.

He said the prevailing higher policy rates, long-term bond yields, and renewed strength of the US dollar could continue to keep global financing conditions tight with consequences for Emerging Market and Developing Economies.

‘Furthermore, rising geopolitical tensions is creating uncertainty about crude oil prices and full crystallization of this risk could undermine the disinflation process in many economies, including Ghana,’ he added.

On the domestic macroeconomic environment, the Committee observed the broad improvements in the economy, reflecting stable exchange rates, the sustained disinflation process, and increased accumulation of foreign exchange reserves.

These developments reflect improvements in underlying policies, including fiscal consolidation, zero fin
ancing of the budget by the central bank, and relatively favourable external conditions.

He said the improvements would be sustained by the continued maintenance of tight Central Bank monetary conditions, sustained fiscal consolidation, and continued reserve accumulation supported through the Gold for Reserves programme.

On growth, domestic economic activity continues to recover, evidenced by the steady improvement in the Bank’s high frequency economic indicators.

The Governor said the CIEA was recovering from negative territory and was likely to turn positive by year end, showing a more solid rebound in economic activities.

He said the private sector credit growth, however, remained dampened due to risk aversion by banks amid tightened policy conditions and rising credit risk.

Dr Addison said with continued improvement in the macroeconomic conditions supported by declining inflation, credit conditions are expected to improve with a turnaround in credit extension to support growth.

He said the external
payment position was expected to improve, underpinned by continuous implementation of the IMF-supported programme, and the Gold for Reserves programme, among others.

He said the early completion and settlement of favourable agreement terms with bilateral creditors and commercial bondholders would help boost confidence and trigger resource flows to the economy.

‘The strong build up in reserves have provided cushion against external vulnerabilities, including the delay in the cocoa syndicated loan,’ he added.

He said the reserve build-up will even be stronger by the end of the year on receipt of the cocoa loan and disbursement of the IMF second tranche.

The Governor said sustained fiscal consolidation would be needed to place the economy firmly on the course of disinflation and economic growth.

Dr Addison said the 2024 budget statement was also designed to reinforce the ongoing fiscal consolidation.

He said the headline inflation had continued to decelerate in the past few months consistent with forecasts
, meanwhile the latest Bank forecast indicated that the disinflation process was expected to continue, supported by the current tight monetary policy stance, relatively stable exchange rate, and base drift effects.

The Committee noted that although inflation was decelerating, it remained high relative to target, therefore, there was a need to keep the policy rate tighter-for-longer until inflation is firmly anchored on a downward trajectory towards the medium-term target.

The Committee also made the following changes to unify the currency holding for the Cash Reserve Ratio requirement on foreign currency denominated deposits and domestic currency deposits for banks and the new unified Cash Reserve Ratio for total deposits (cedi and foreign currency) are to be held in cedis and this is therefore being reset to 15 per cent effective November 30, 2023.

This measure is to reinforce the Bank’s liquidity management operations to address excess structural liquidity conditions in the market and provide additional
impetus to the disinflation process.

The Committee will continue to monitor developments in the banking sector and deploy other policy tools, as and when required, to support stability.

Source: Ghana News Agency

The Presbyterian Church of Ghana (PCG) has held a Valedictory and Thanksgiving Service for the Right Reverend Professor Joseph Obiri Yeboah Mante, the outgoing Moderator of the General Assembly, at the PCG Victory Congregation, Fafraha near Adenta in Accra.

It was graced by President Nana Addo Dankwa Akufo-Addo, the Chief of Staff, Madam Akosua Frema Osei-Opare, and the Finance, Road, and National Security ministers, the Inspector General of Police, George Akuffo Dampare, and chiefs among many dignitaries.

Rt. Rev. Prof. Mante took office as the Moderator on December 1, 2018, after serving as the President of the Trinity Theological Seminary.

President Akufo-Addo eulogised the Moderator for his contribution to the development of the country and called on the Church to continuously pray for the leadership and the Government to carry out its mandate, successfully.

Touching on his achievement, Prof Mante said with the introduction of ‘Vision 1.5’, the church had increased its membership to about 1.4 million
.

He said 285 pavilions were constructed across the country to provide a welcoming environment for collective worship and the expansion of the church’s influence.

A suitable manse was constructed for the Moderator of the General Assembly while he introduced responsible and sustainable environmental practices among the various congregations of the Church.

Rt Rev. Prof. Mante led the church to provide support for PCG’s minsters serving in deprived and economically challenged communities.

He said the Presby Church had provided enormous support to the education sector of the country, currently boasting of 2,500 basic schools, 36 senior high schools, and seven tertiary institutions.

He commended all and sundry for their support and encouraged Christians not to lose touch with God’s divine presence.

He urged them to take corporate worship and their personal relationship with God seriously, since that was the only way, they would move to higher ground.

Source: Ghana News Agency

Torgbiga Adama III, Paramount Chief of Somé Traditional Area, in Ketu South has called on Somé citizens home and abroad, and philanthropists to support the area for more development projects.

He said: ‘I hope to mobilise Somé citizens, the government organisations and other stakeholders to help us motivate our teachers to teach and pupils to learn, find scholarships for our brilliant but needy pupils to study Medicine, Law, Ewe Language and Arts and improve health and sanitation, and the road network.’

Torgbiga Adama made the call at the 2023 Sometutuza, the socio-cultural and development festival at Agbozume celebrated on the theme: ‘Unifying All of Somé for Her Total Development.’

He said though he and his chiefs had made some modest gains in areas of chieftaincy, education, health and socio-economic development, ‘Somé is not yet out of the woods’ and required the support of all.

‘There are still some pockets of chieftaincy disputes here and there, health facility challenges, poor road network and the
flooding of Somé.

Torgbiga Adama said he intended to revive the ‘kete’ (kente) industry to be a more vibrant and innovative trade and indicated his readiness to work with any well-wisher to win the economic battle for Somé.

‘Somé cannot do it alone, just as you also cannot do it alone,’ the Paramount Chief said.

Former President and Flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, who graced the durbar in the company of Mr Fifi Fiavi Kwetey, General Secretary of the NDC and Mr Mawutor Agbavitor, Regional Chairman, NDC among other party functionaries, donated relief items meant for flood victims in the area.

The items included 177 bags of rice, 38 cartons of cooking oil, 43 cartons of tomato paste, 45 cartons of canned fish and packs of bottled water.

Mr Mahama assured all flood victims of the NDC’s support and thanked Volta Region Members of Parliament (MPs) for standing with their people in their plight.

Saturday’s durbar which showcased the rich traditions of Somé was replete
with drumming and dancing, cultural performances, poetry recitals, a play featuring the economic activities of the people and an exhibition which flaunted the kete designs and products from Agbozume.

The festival which had returned after 19 years break due to chieftaincy disputes, had Togbi Gbordzor III, Dusifiaga of Anlo and other traditional leaders from Aflao, Ave and Klikor areas in addition to other dignitaries like MPs for Ketu South and Akatsi South, and current and former Municipal Chief Executives for Ketu South.

Source: Ghana News Agency

The Interfaith Tourism World (ITW) club, a religious tourism club, has been launched in Accra with the aim of uniting people of diverse faiths through the transformative power of travel and exploration.

The club made up of over 250 members seeks to open doors for those eager to uncover the rich tapestry of tourist sites in Ghana and beyond.

Mr Ernest K. Boateng, President of ITW Club, said religious heritage could act as a transmitter of the age-old values linked to the identity of a territory while reflecting on the relationship between the religious value and the monumental value of a place.

This reflection, he said, was based on the initial premise that at present there were elements related to the architectural heritage of the church that have wholly or in part lost their use value as places of worship.

Mr Boateng said religious phenomenon was a crucial part of human history, in every period with evidence to support the existence of religious activity.

‘Religious tourism is a niche within the segmen
t of cultural tourism, comprising four specialist niches, pilgrimages, visiting sacred sites, church, mosque and temple tourism, and also travel for the purpose of mission or worship.’

The President said the mission of the club goes beyond mere sightseeing, but connecting individuals to positive experiences through tourism. ‘By this, we aim to shift perspectives and enable them to see the world in a new light.’

‘As a tourism club, we strive to bridge the gap between the affluent and the less privileged, as well as foster unity among various religious communities in our great nation.’

Mr Boateng noted that members of the club, have the opportunity to enjoy a range of benefits, subject to decisions made by leadership. These privileges encompass both travel and tour advantages, as well as social benefits.

‘We will also offer career guidance for those interested in pursuing studies in tourism-related fields, and recognize and reward those who demonstrate exceptional potential and contribute positively to the
communities they visit during exhibitions and fairs.’

In times of need, active members will also have access to financial aid and mutual support, and have the privilege to participate in literacy programmes thoughtfully designed by the club.

‘Before the end of this year 2023, the club in partnership with Adom Group of Companies and its subsidiary ANB Acrylic Limited will paint the entire building of the Rising Star Orphanage home located in Dodowa and donate to selected individuals and orphanages as part of our social responsibility.’

Mr Kofi Atta Kakra-Kusi, Deputy Head of Corporate Affairs, Ghana Tourism Authority (GTA), said tourism brings a lot and it has helped to build our nation in many ways.

It is evidence of our footprint in the tourism industry in terms of preserving our patriotism and ensuring the peace and progress of our nation.

He said the GTA was delighted to empower clubs such as the ITW club in order to push the tourism industry to a higher pedestal and boost the economy.

Mr Kusi said d
omestic tourism now plays a critical role in the tourism industry and was hopeful that with the launch of this club, domestic will improve and more tourists from the diaspora would come in to experience what Ghana has in terms of religion and tourism.

Madam Alisa Osei-Asamoah, President of Tour Operators Union Ghana (TOUGHA) said, the establishment of this new club was a great initiative and would help promote the tourism industry since the clubs also play a major role in the tourism industry.

She said her outfit also seeks to promote the tourism industry, especially domestic tourism, and assured stakeholders they would collaborate with the ITW Club and provide the needed support for them to also contribute their quota in moving the industry forward.

Executive members for the club were later outdoors, including Ernest K. Boateng, President, Faustina Yakubu, Vice President, Afia Animah Boateng, Secretary, Saka Nana Yeboah, Organizing Secretary, Ebenezer Asare, Deputy organizing Secretary and member of the m
edia Team, Iddi Ibrahim, Treasurer and Thomas Arthur, PRO and Member of the Media team.

Source: Ghana News Agency

Over 250 businesses in the Adansi enclave are expected to participate in this year’s Obuasi Trade Show (OTS) set for this Christmas, Mr. Ishmael Yakubu Coffie, Chairman of the show, has announced.

The annual event, which is the sixth edition, brings together small and medium enterprises and exhibitors to showcase their products at one place to promote sales for local businesses.

The theme chosen for this year’s event is ‘Harnessing our Creative Potential to Diversify the Local Economy of Obuasi.’

Consequently, a media launch has been held in Obuasi to unveil activities lined up for the event, which is put together annually by AngloGold Ashanti Obuasi Mine and its partners, made up of the Obuasi Municipal Assembly, Obuasi East District Assembly, Akrofuom District Assembly and the Ghana Enterprise Agency.

Mr. Coffie told the media that this year’s edition would be spiced up with other side attractions such as music and fashion shows, comedy shows, rep your jersey, rep your community, and health screening.

H
e said the goal was to boost the local economy by providing a platform for businesses in Obuasi to showcase their products to create a market for them beyond the trade show.

Mr. Edmund Oduro Agyei, Head of Stakeholder Engagement and Land Management of AngloGold Ashanti, said the company prioritised innovation and sustainable development as underpinned by its 10- Year Socio-Economic Development Plan (SEDP).

‘Today, as we mark the preparation towards organising the five-day Obuasi Trade Show, we are thrilled to share that our focus on diversification goes beyond just mining,’ he told the media.

He said AngloGold Ashanti recognised the importance of supporting local businesses and entrepreneurs.

‘Through strategic partnerships and investments, we aim to stimulate the growth of various sectors within Obuasi’s local economy to nurture vibrant and self-reliant communities,’ he emphasized.

He entreated entrepreneurs and artisans to seize the opportunity to showcase their talents, products and services, while fo
rging networks and partnerships to strengthen the local economy.

Dr. Maurice Jonas Woode, the District Chief Executive for Akrofuom, said empowering local businesses was the way to build a resilient local economy.

He reminded the people of how Obuasi became dormant when AngloGold Ashanti suspended operations to undergo care and maintenance, stressing that it was important to diversify the local economy.

He applauded AngloGold Ashanti for implementing various interventions in the areas of health, education, and economic development under its 10-year development plan.

Source: Ghana News Agency

The bad road network in the Bono East Region continue to hamper farming activities, compelling some farmers to abandon their farms for other means of survival.

The trend has affected food prices in the area.

Although the region is known to be one of the country’s key food baskets, its farmers have persistently complained bitterly about post-harvest losses, as most of their productions are often left on the farm to rot due to poor accessibility of road networks.

A survey conducted by the Ghana News Agency (GNA) in some major farming communities including Atebubu-Amantin, Prang, Kwame-Danso, Techiman North and South, Kintampo North and South and Nkoranza, revealed that about 45 to 65 per cent of farmers in the Bono East Region continued to suffer the same predicament.

The situation, which had not been attended to for a long time was gradually creating food insecurity which may impede the country’s progress in achieving the Sustainable Development Goals (SDGs).

The road system at Tadieso, Wuraso, Aworopata
, Akisimaso and Bamiri all in the Techiman South, established the plight of farmers who use the bad roads, making it difficult to get vehicles to transport their products to the market.

In the area of Krabonso and Jema communities in the Kintampo South District, Bomini, Busunya and other communities in the Nkoranza North district were also not left out in the situation as they also find it very difficult to send heavy agricultural equipment to the farms due to bad road networks.

Some of the farmers interviewed in the Tadieso community told the GNA that they had cultivated varieties of food crops ranging from vegetables to tubers on a vast land but did not have access to the market due to the bad road network in the area.

‘We are not able to send our produce from the farms due to bad roads and it is affecting our livelihood,’ they stated.

At Konkonti a farming community in the Techiman North district, a cocoa and yam farmer, Mr Awini Atongo, lamented about the lack of Agricultural Extension officers to sup
ervise and teach new farming methods, to increase productivity.

He said this had been a challenge to farmers in the area over the years.

He said quality healthcare services to farmers and their dependents had been another worrying issue, as health workers were not able to access the road to the area to provide healthcare to the people.

Mr Opoku Nyame, the District Chief Executive of Kintampo South Assembly, confirmed the situation to the GNA and said the government had initiated plans to address such road networks, indicating that most of the roads in these farming communities, had been given the needed attention for reshaping.

Source: Ghana News Agency

Mr Alban Bagbin, the Speaker of Parliament, Monday said the Criminal Offences (Amendment) Bill, 2022, which sought to proscribe witchcraft accusations, was passed on Thursday, July 27, 2023, yet to receive Presidential assent.

However, during Monday’s proceedings, the Bill resurfaced as Motion 41 in the Order Paper at the Consideration Stage, hence the Speaker directed the Table Office to remove it.

The object of the Bill is to amend the Criminal Offences Act, 1960 (Acts 29) to prohibit the practice by any person as a witch doctor or a witchfinder; to proscribe the declaration, accusation, naming or labelling of another person as a witch; and for related matters.

The Private Member’s Bill was sponsored by Mr Francis-Xavier Kojo Sosu, the National Democratic Congress (NDC) Member of Parliament (MP) for Madina.

Other sponsors included Hajia Laadi Ayii Ayamba, NDC MP of Pusiga; Dr Godfred Seidu Jasaw, NDC MP, Wa East, Madam Helen Adjoa Ntoso, NDC MP, Krachi West, and Madam Betty Nana Efua Krosbi Mensah, NDC
MP, Afram Plains North.

Mr Bagbin said a letter to the Presidency, regarding the non-signing of the Bill was yet to receive a response.

He, therefore, urged the President to ‘follow the dictates of the 1992 Constitution to register his concerns over the Bill and not seek to flout the same Constitution.’

Commenting on the issue, Mr Haruna Iddrisu, an NDC MP for Tamale South, explained that the non-signing of the Bill by President Akufo-Addo was a ‘breach of Article 106 of the 1992 Constitution.’

Mr Osei Kyei-Mensah-Bonsu, Majority leader, clarified that the President had several issues with the passed Bill and had been seeking a meeting with the Speaker over the development, adding that he (President Akufo-Addo) had not refused to give his assent to it.

Source: Ghana News Agency