Cross-Agency Tech linkages can curb GH₵6bn tax leakages – Experts

Ghana loses about GH₵6 billion each year due to revenue leakages. This includes GH₵3 billion lost to corruption and GH₵2 billion from mining sector losses. Additional losses come from transfer pricing and customs undervaluation.

Professor Ali-Nakyea pointed out that these losses exceed the $3 billion IMF bailout. He questioned, “Do we need the IMF?” He suggested Ghana could be self-sufficient if these issues were addressed with technology.

The panel recommended cross-referencing financial data between government agencies. Prof. Ali-Nakyea gave an example involving vehicle imports and duty payments. Linking the GRA with DVLA could improve revenue collection significantly.

Gilbert Yirenkyi Addo from Deloitte stressed the need for data synchronization. He noted discrepancies in financial reports filed with different institutions. A centralized point for financial data is essential.

The panel discussed using technology to capture revenue from the informal sector. Prof. Ali-Nakyea mentioned a presumptive tax on this sector since 2015 has not been implemented effectively. He proposed that informal operators pay “20 cedis a day” through mobile money.

Dr. Richard K. Boso emphasized technology transfers in contracts with foreign contractors. He urged a review of existing contracts like SML to ensure they build local capacity over time.

Dr. Boso suggested future contracts should include capacity-building provisions for Ghanaian institutions. This would reduce reliance on foreign contractors over time.

Professor Kwame Gyan connected technological solutions to governance issues, stating, “Our problem goes way beyond economics.” He argued that integrity reforms must accompany technology implementations.

Experts acknowledged GRA's progress in automation but called for more integration. Ghana’s revenue rose from GH¢75 billion in 2022 to GH¢104 billion in 2024, but costs of collection need consideration for better measurement.

The panel also highlighted the importance of tax audit quality at GRA. Yirenkyi Addo referenced a past initiative focused on improving audit quality.

Panelists agreed that Ghana has potential revenue sources but needs better systems to address leakages and enforce compliance. They emphasized that while technology is crucial, cultural change and political will are necessary to combat corruption and enhance governance.