The Chartered Institute of Taxation, Ghana (CITG) has expressed concern over the revenue loss caused by illegal small-scale mining, commonly known as galamsey, due to tax evasion.
In a statement released on Thursday, CITG explained that illegal miners contribute to this loss through unaccounted gold exports.
The Institute pointed out discrepancies between Ghana’s official gold export records and the figures reported by other countries, suggesting that a significant amount of gold is being exported illegally.
“The President mentioned that during an official visit to Dubai, the Senior Minister was told that ‘last year, we [UAE] recorded $7 billion worth of gold imports from Ghana,’ while Ghana’s official records indicated only $2 billion in exports to the UAE. This $7 billion figure exceeds Ghana’s total gold exports of $5.79 billion in 2017, according to the Bank of Ghana’s annual report,” CITG noted.
The Institute also emphasized that, under Ghanaian law, the illegality of an activity does not exempt it from taxation.
To recover lost revenue from galamsey, CITG called for a comprehensive strategy that targets not only the miners but also the entire supply chain, including financiers and those benefiting from the illegal gold trade.
“Address the entire supply chain, focusing on financiers and individuals profiting from illegal gold trading, in addition to the miners themselves,” the statement recommended.
CITG further urged regulatory bodies to identify those involved in illegal transactions that result in tax evasion, emphasizing that curbing galamsey is crucial for protecting Ghana’s revenue.
“The CITG calls for immediate, coordinated efforts from all stakeholders, including the government, traditional leaders, and international organizations like the IMF and World Bank, to address illegal mining and its associated tax evasion.”
Additionally, the Institute advocated for increased surveillance in galamsey-prone areas, stricter penalties for offenders, and stricter enforcement of tax regulations on illegal miners.
Source: Adomonline
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