The Parliament of Ghana has passed the Chartered Institute of Taxation Bill, 2014 to regulate the practice of taxation and promote economic growth, in the country.
The Bill, which was read the third time and passed on Wednesday, is expected to help re-establish the Chartered Institute of Taxation, Ghana (CITG) as professional body to promote the advancement and practice of taxation in the country.
It is also expected to enhance CITG’s performance to realise its objects and complement government’s efforts at promoting a sustainable tax system and a stable financial environment for economic growth and development.
The functions of the institute under the bill is to regulate the practice of taxation in the country, determining the standard of knowledge and skills to be attained by persons seeking to practice taxation and conducting qualifying examinations for membership of the institute.
According to the bill, the institute is expected to prescribe its own professional standards for its members and educate them on the methods and practices necessary to maintain those professional standards.
The bill also mandates a person who intends to practice taxation to register with the institute and pass the qualifying examination for membership of the institute conducted by the council and has completed practical training for a period determined by the council in an institution or organization of equivalent status with the institute.
To achieve its object, the Institute is expected to prescribe and maintain professional standards, educate members on the methods and practices necessary to maintain professional standards as well as ensure that professional standards are maintained by members of the Institute.
The institute per the new bill has been mandated to organize continuous professional development courses for members of the Institute as a condition precedent for the renewal of the practicing certificate of members of the Institute, and encourage research in the subject and practice of taxation generally to secure the well-being and advancement of the tax profession.
The bill provides for a governing body of the institute made up of a thirteen member council consisting of eight members of the institute elected by members of the institute at an annual general meeting of the institute.
The council will also include representatives from the ministries of finance, education and Justice and Attorney-General’s Department. Clause five to nine of the bill clearly defines the tenure of office of members of the council, meetings of the council, and the disclosure of interest.
The Chartered Institute of Taxation, Ghana has been practicing as a professional body registered under the Professional Bodies Registration Act, 1973 (NRCD 143) and is a founding member of the West African Union of Tax Institutes and currently occupies its Presidency position.
The institute began operating in 1978, as sole professional body mandated by law to certify tax professionals in Ghana and was incorporated as a limited company on 2 May 1980.
The Bill which was passed by a voice vote is expected to receive Presidential assent, to promulgate it into law as stipulated in Article 106(7) of the 1992 Constitution,
Source: ISD