INTERCLASS ASSOCIATES LTD. v. GHANA REVENUE AUTHORITY
2016
COURT OF APPEAL
GHANA
CORAM
- GYAESAYOR, J.A. (PRESIDING)
- ACQUAYE, J.A.
- WELBOURNE (MRS), J.A.
Areas of Law
- Contract Law
- Tax Law
- Constitutional Law
2016
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The case involved a dispute over the payment of finder's fees following a tax audit conducted by the Plaintiff/Appellant for the Defendant/Respondent. The terms of the contract required written acceptance of tax liability by SSNIT for the fees to be payable. The High Court dismissed the Appellant's claims, and the appellate court affirmed the decision. Central to the ruling were issues of contract legality, taxpayer rights to object to assessments, and conditions precedent for payment as per the agreement.
WELBOURNE (MRS), J. A.
The Background Benjamin Franklin once said in 1789 that there were only two things certain in life: death and taxes.
That statement is as true today as it was then.
Equally true is the fact that generally no one enjoys paying taxes.
However, governments need taxes in order to develop.
Ghana is no exception.
That is why the Ghana Revenue Authority is given the mandate to collect as much revenue under the Tax laws that it can legitimately collect from taxpayers.
Thus one of the means of this objective is by way of tax audits of persons including enterprises and business entities.
In furtherance of this objective, the Plaintiff/Appellant (hereinafter referred to as the Appellant), was engaged by the Defendant/Respondent (hereinafter referred to as the Respondent), to carry out a tax audit of certain Companies and institutions including the Social Security and National Insurance Trust(SSNIT). This matter is in connection with the tax audit of SSNIT.
The agreement for the audit was a written contract referred to by the parties as “Terms of Reference” – (Exhibit ‘A’) found on page 175-177 of the Record of Appeal.
Clause 7 of the “Terms of Reference” provides as follows: “Fees
(1): The firm will be paid a Fixed Audit Fee of GH¢2, 000. 00 (Two Thousand Ghana Cedis) per audit per financial year.
The controversy arose when the Appellant demanded its finder’s fees.
The Respondent refused to pay, citing clause 7(2) which provided that the finder’s fee will only be paid if SSNIT accepted the tax liability in writing.
Further, the Respondent relied on a Certiorari Ruling by the High Court(Commercial Division) presided over by H/L Justice Bright Mensah in Suit No. FTRM 38/11 dated 23rd January, 2012 entitled The Republic vrs The Commissioner General, GRA Ex-parte: Social Security & National Insurance Trust. (See page 201 – 217 of the