UNILEVER GHANA LIMITED v. THE COMMISSIONER GENERAL, GHANA REVENUE AUTHORITY (GRA)

JUDGMENT

On 17th March 2021, Unilever Ghana Limited (hereinafter called the Appellant) filed Appeal against the Commissioner-General, Ghana Revenue Authority (hereinafter called the Respondent) before this Court.

The Appeal is in respect of Tax Assessment made by the Respondent against the Appellant on 215t February, 2019 which the Appellant has attached as exhibit 5 to the Notice of Appeal.

Per exhibit 5, the Appellant tax liability per it Transfer Pricing Returns and Financial Statements submitted for 2012-2016 years of Assessment was Six Million, Two Hundred and Thirty-Six Thousand, Two Hundred Cedis (GHS 6,236,200.00).

The Appellant was required to pay the amount stated above within fourteen days from 21st February, 2019.

The Appellant objected to the assessment by the Respondent in a letter dated 20th May, 2019 which the Appellant attached as exhibit 6 to the Notice of Appeal.

The Respondent opinion on the objection is dated 19th september, 2019. It has been attached to the Notice of Appeal as exhibit 7. There were some subsequent letters which were written between the parties in respect of the Appellant tax liability.

The Appellant being dissatisfied with the objection decision on it tax liability filed the instant appeal before this Court.

The Appellant grounds of appeal are as follows:

a) That the Respondent did not use a transfer pricing method as required by the Transfer Pricing Regulations, 2012 (LI 2188) in examining the Appellant Transfer Pricing Returns.

b) That the Respondent misinterpreted, misunderstood and misapplied the OECD Transfer Pricing guidelines to arrive at a liability of Six Million, Two Hundred and Thirty-Six Thousand, Two Hundred Ghana

Cedis (GHS6,236,200.00) on the Advertising, Marketing and Promotion expenses incurred by the Appellant.

c) That had the Respondent properly applied the OECD guidelines, the Appellant would not have been liable to pay tax on the Advertising, Marketing and promotion expenses.

The Respondent filed a response or reply to the Appellant Notice of Appeal on 12th April, 2021.

The parties subsequently filed their submissions before the court for the determination of the Appeal.

It is trite law, that appeal is by way of rehearing. This means, the appellate court or body is to examine the entire proceedings or the decision of the court or the body whose decision is the subject of appeal to determine whether the decision can be supported in law or on facts or both.

Therefore, this court has