Make conditions for tax exemptions known to associations

The Commission of Inquiry empowered to go into matters relating to the participation of the Black Stars in the 2014 World Cup in Brazil has recommended that conditions for tax exemptions should be made explicit to allow sporting associations follow the terms to get the required exemptions on their items.

According to the Commission, the procedure should be made available to all the sports associations for easy reference.

“Sports associations must familiarize themselves with the framework of the Harmonized Code under the Third Schedule of Exemptions since other items that fall outside the exemption scope shall, by law be subject to Parliamentary approval or in the absence of such supportive legislations the Association may be required to pay for the duties,” it further stated.

Sports Associations it said, prior to receiving any item should make enquiries with the Ministry of Finance (Tax Policy Unit) if the item qualifies for exemptions and if not specific procedure to be followed.

Sports Associations that appeared before the Commission during its sitting asked for tax exemptions on sporting equipment that are either donated to them or purchased with the assistance of their International Federation Bodies to develop the sport in the country.

The Commission believes that tax exemption is necessary as associations lack funds to pay for duties to claim their sporting equipment.

A major concern however was the lack of knowledge and understanding of the procedures for obtaining these tax exemptions which makes the situation more difficult.

Apart from the legal basis for tax exemptions, the Commission explained the process required to allow the organizations get a waiver on their equipment.

It includes, a letter requesting the said exemptions to be sent to the sector Minister by the sporting association.

The Ministry of Youth and Sports shall vet the request and if satisfied recommend the application to the Ministry of Finance for approval.

When all conditions are satisfied, the Ministry of Finance shall issue the required approval to the Ghana Revenue Authority for the required waiver, the Commission explained.

By Michael D. Abayateye

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