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The Ghana Revenue Authority (GRA) has announced that it will slap the statutory 125% interest fine on persons and companies that fail to pay their withholding taxes monthly.

According to the GRA, failure to pay withholding taxes on due dates will attract an interest of 125% fine of the statutory rate, compounded monthly on the outstanding tax. Withholding taxes are usually paid to the Domestic Tax Revenue Division of the GRA by the 15th of every month.

In an interview with Citi Business News, Deputy Commissioner in charge of Policy and Programmes at the Ghana Revenue Authority (GRA), Mr Edward Gyamerah stressed that the penalty will not be reconsidered.

“The law expects you to withhold and pay to the commissioner but when you the purchaser fails to withhold the tax, and pay to the commissioner, you will be asked to pay penalty plus the amount that you did not deduct. That is a 125% of the Bank of Ghana re-discount rate and compounded monthly,” he stated.

He advised the various persons and companies to ensure they settle their withholding tax before the deadline.

“The advice is that we should ensure that the penalty is a necessary cause to businesses. They need to keep track of all their withholding tax deduction and make sure they pay on time to avoid payment of a penalty.”