CITG gets mandate to regulate taxation practice

The Chartered Institute of Taxation Ghana (CITG) has been given the legal backing to regulate the practice of taxation in the country, following the passage of the CITG Bill, 2014 into law by Parliament.

The CITG Bill, which had been pending since 2014 was finally passed into law after the Deputy Minister for Education, Mr Samuel Okudjeto Ablakwah, moved the motion for its third reading..

The passage of the bill makes the Institute the national tax regulator with the sole mandate of supervising the practice and administration of taxation in the country.

It would also be required to facilitate the exchange of information and ideas related to the practice of taxation, conduct and provide for the conduct of qualifying examinations for membership of the Institute and prescribe and approve courses of study for the examinations, evaluate and approve the curricula and certificates of other professional organisations considered by the Institute to be of equivalent status with the Institute, and keep, maintain, and publish a register of chartered tax practitioners and tax practitioners.

The institute would also be allowed to determine the standard of knowledge and skills to be attained by persons seeking to practice taxation in the country, strike off from the register of chartered tax practitioners and tax practitioners the name of a member for stated misconduct, incompetence or for other justifiable reasons on the recommendations of the Disciplinary Committee, prescribe and maintain professional standards and educate members on the methods and practices necessary to maintain professional standards and also ensure that the professional standards are maintained by members of the Institute.

Committee’s report

The Parliamentary Select Committee on Education in its report on the bill, observed that in spite of the significant contribution of the CITG to the development of taxation in the country, it lacked the requisite mandate accorded other chartered institutes in countries like Nigeria to regulate the practice of taxation.

It said CITG’s mandate to regulate taxation would contribute tremendously in streamlining the practice of taxation in the country.

It said considering the expertise of the institute and its contributions to the practice and development of taxation over the years, giving it the exclusive legal mandate to determine the standards of knowledge and skills to be obtained by persons seeking to become professional tax practitioners and administrators, as well as regulating the practice of taxation through the appropriate legal and ethical regime would go a long way to improve standards in the tax profession.

Petition from CICTA

The committee also noted in its report that during the consideration of the bill, it received a petition from the Chartered Institute of Certified Tax Accountants (CICTA) which sought to question the basis for making the Chartered Institute of Taxation, Ghana, the national tax regulator.

In its petition, the Chartered Institute of Certified Tax Accountants stated that it had also obtained its full registration on July 2012 under the Professional Body Decree 1973, and that since the Chartered Institute of Taxation, Ghana is also a professional body just like it (Chartered Institute of Certified Tax Accountants) it would be unfair and against the principle of freedom of association to allow the latter to assume the position of a national tax regulator.

The Chartered Institute of Certified Tax Accountants’ petition viewed clause 19 of the Bill as discriminatory, since it prohibits individuals or members of other professional bodies from practicing as tax professional unless they are members of the Chartered Institute of Taxation, Ghana.

The petition therefore advocated for the creation of an independent institution to regulate the practice of taxation in the country.

The Committee, however, said it took into consideration the position of the National Accreditation Board (NAB) in respect of the accreditation status of the CICTA.

It said the NAB issued a statement to the effect that the CICTA, Ghana did not have the legal mandate to award any academic or professional qualifications which may be accepted for purposes of academic/professional placements. — GB