Download FAIR AND EFFICIENT REVENUE COLLECTION: OVERCOMING

MR. WALLACE AKONDOR:
Commissioner
Customs Division-Ghana Revenue Authority
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Fairness and efficiency
Increasing trade volumes versus Compliance
Low valuation compliance
Common valuation offences in Ghana
Some Commodities and associated offences
Trade mis-invoicing in Ghana
Ensuring fairness and efficiency in valuation
Resolution of valuation disputes
Strategies and skills
International Collaboration
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Fairness is one of the canons of taxation
The tax system should strike a balance
between the interest of the taxpayer and
that of tax authorities
Efficient revenue collection by Customs is a
way of maximizing revenue collection at
minimal cost.
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Increasing trade volumes and the
requirement for speedy processing
and facilitation.
Compliance levels are low
Need for Risk Management to ensure
efficient resource allocation
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Developing countries depend largely on Customs
duties and taxes as the major practical source of
revenue to finance government spending.
However, Customs administrations in these
countries are confronted with low valuation
compliance and prevalence of falsified trade
documents.
Part of the Valuation function is undertaken by
DIC’s [ In Ghana there are five such Companies]
Submission of falsified invoices and other trade
documents has often led to the following
offences relating to some identified
commodities:
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Mis-invoicing
Wrong origin of goods
Misdescription
Misclassification
Commodity
Underinvoicing
Wrong
Origin
Misdescription
Wrong HS
code
Rice
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Sugar
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Frozen
chicken
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Tomato
paste
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Ethyl alcohol
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Pasta
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Fruit juices
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Gross Illicit flows = $14.39bn (2002-2011)
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Average of $1.44bn per annum
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Constitutes 6.6% of GDP
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Significant adverse impact on the fiscal
balance over the period
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Source: Global Financial Integrity Report May 2014
 WTO
Agreement on Customs Valuation (ACV)
offers fair, uniform and neutral valuation.
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complexity of Customs valuation resulting
from the application of the ACV and strict legal
requirements calls for new strategies and specific
skills to handle valuation issues.
 Fairness
in valuation will result in increasing
levels of compliance, coupled with a risk
management system would yield efficient
revenue collection.
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At the level of DIC’s
◦ Initial disputes are referred to DIC’s as a first
recourse.
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Internal mechanism to address appeals and
disputes unresolved at the DIC level.
◦ Structured
◦ To ensure speedy resolution
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Existence of a Valuation Technical Team.
Close collaboration between Valuation, PCA and Risk
Management.
Constant capacity building of Customs officers in the
application of WCO tools.
Constant engagement with Stakeholders (Stakeholder
Engagement Strategy developed through WCO assistance)
Preparation underway to takeover outsourced valuation
function from the five Destination Inspection Companies
(DICs) very soon.
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Customs-to-Customs
◦ Mutual Administrative Assistance (MoU: Burkina
Faso, Cote d’Ivoire)
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Bilateral/Multilateral Agreements
◦ South Africa, Netherlands (in progress)