Project Case Study
Supported Ghana in collecting tax from minerals
Increased the efficiency and effectiveness of revenue collection in the minerals sector in Ghanaian Government
In common with many sub-Saharan African countries, Ghana is heavily dependent on revenues from its natural resources, particularly from substantial quantities of minerals and petroleum.
Historically, states have struggled to collect a fair return from their natural resources due to a failure to effectively collect revenues from multinational companies dominating the sector. Typically, states have suffered as a result of the complexity of the sector and from weak capacity in relation to their counterpart companies.
In 2013, we were contracted by the Australian Department of Foreign Affairs and Trade to support the Ghana Revenue Authority (GRA) in the collection of revenues from the minerals sector and provided a team of advisors to support the GRA. The objectives of the project were to increase understanding of the issues facing the minerals sector, increase the ability to ensure tax compliance of the sector through a balance of service and enforcement and identify capacity gaps with respect to the administration of Ghana’s new mining fiscal regime.
We supported the Large Taxpayers Office of the Ghana Revenue Authority in two distinct areas. The first was the training of tax administrators in how to administer Ghana’s mining fiscal regime, including training in the new transfer pricing regime. Secondly, our team supported the audit and investigations of mining companies, including analysing the risk profile of the mining sector and developing best practice techniques for auditing mining companies.
Our team worked with the GRA on the resolution of technical issues and law interpretation relating to specific tax risks identified in audit activity. Furthermore, the training provided exposed the staff to the methodologies needed to improve case effectiveness and to identify relevant tax risks. The staff were given a series of tools to assist them in evidence gathering and adjustment of identified risks, ensuring an improved ability to tackle specific risks relating to mining taxation.