IRS to re-launch payment of rent tax

Page 31: Daily Graphic, May 26, 2009.
Story: Albert K. Salia
THE Internal Revenue Service (IRS) will re-launch the payment of rent tax by both residential and business landlords in the third quarter of the year.
The exercise is expected to rope in more than GH¢100 million from landlords in Accra and other urban centres.
A new rent tax form, which covers portions to be filled and signed by both tenants and landlords, is to ensure the success of the scheme.
The Commissioner of the IRS, Major Dan Ablorh-Quarcoo (retd), told the Daily Graphic that although the campaign to make landlords pay taxes was launched last year, the programme suffered a hitch due to the unwillingness of tenants to disclose the identities of the landlords for fear of being ejected.
Moreover, he said, the initial forms provided for occupants of residences and businesses in the first exercise did not create room for authentication by landlords.
Major Ablorh-Quarcoo said the IRS would embark on a series of educational programmes before launching the scheme.
He said the IRS would also solicit the support of the police to enforce the rent tax.
According to him, it would be an offence for tenants and landlords to fail to disclose information required of them on the forms.
Touching on the recent IRS-religious forum on payment of taxes, Major Ablorh-Quarcoo said it became evident after the forum that most of the religious organisations, especially the charismatic and Pentecostal churches, were not aware of their tax obligations.
“We realise that most of the churches were ill-informed about the law. But we made them aware that there was a limit to the law,” he stated.
The IRS boss said the forum made them aware of their tax obligations and they were entreated to own up.
As a result, he said, the IRS was mounting the campaign on all fronts to cover artisans and garage owners and explained that the service was looking at schemes that would make them understand and pay easily.
Major Ablorh-Quarcoo said the regional and district offices of the IRS would continue with the interaction with the local churches so that each one of them was brought on board.
He said the IRS had given itself up to the end of June this year, when it would be expecting positive returns from the religious organisations.