GRA will implement a system to monitor cryptocurrency accounts by the end of the year
The Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Kwasi Sarpong, has stated that cryptocurrency investors in Ghana will not evade taxation as the Authority intends to implement advanced technology to monitor profits from digital currencies.
“An intriguing aspect is crypto. The cryptocurrency landscape is advancing rapidly. Nowadays, there are individuals involved in cryptocurrency trading who are generating profits. This sector is developing.”
“Our regulations are in progress. We are collaborating with the Securities and Exchange Commission and the Bank of Ghana to establish a regulatory framework. However, concerning tax legislation, it is not a recent development. If you earn a profit, it is required that taxes be paid,” he mentioned during an interview on Joy News’ PM Express Business Edition on Thursday.
He indicated that the GRA is establishing systems that will enable them to monitor digital transactions.
“Therefore, the technology we are gearing up to introduce will help us focus on all cryptocurrency accounts, and we will engage these individuals to ensure their participation in the taxation system.”
Mr. Sarpong emphasized that the broader aim is to synchronize Ghana’s taxation framework with the expanding digital economy.
“The rise of digitization and the digital economy is ongoing and will continue into the future, with the future taxpayer being primarily digital. This is why we at GRA are preparing ourselves to be equipped for today’s needs and those of the future, so we can effectively fulfill our responsibilities for revenue generation.”
He mentioned that the emphasis on cryptocurrency is part of a comprehensive strategy to address gaps in online transactions and reinforce adherence to current tax regulations.
“Currently, there are existing online business taxation rules, such as VAT. When you shop in a physical store, you are charged VAT. Similarly, when purchasing online, you should also pay VAT.”
“Our objective is to leverage technology so that when transactions occur online, we can capture the VAT and taxes at the time of sale, thus eliminating the current challenge of tracking these transactions or being unaware of online activities.”
“The tech implementation we are working towards, we anticipate, will be in place by September, allowing us to pilot it by the year’s end and then expand its application.”
He underlined that this strategy aligns with the government’s approach of not imposing numerous new taxes but rather ensuring compliance with existing ones.
“The approach advocated by President Mahama and the Finance Minister is to avoid establishing many new taxes since our current tax laws contain adequate provisions that, if executed, will enhance and broaden the tax base.”
