Government must explain GH¢16bn tax refund claims with evidence – Former Finance Minister

Former Finance Minister Dr Mohammed Amin Adam has challenged the government to provide concrete evidence to support claims that GH¢16 billion from the Tax Refund Account was misapplied under the previous administration.

Speaking on PM Express on JoyNews on Monday, March 17, 2025, he dismissed allegations by Finance Minister Dr Cassiel Ato Forson that the funds were turned into a “slush fund.”

Dr Amin Adam explained that the Tax Refund Account is structured by law, with six per cent of revenue collected by the Ghana Revenue Authority (GRA) set aside for tax refunds.

He stated that any unused portion of these funds is legally reallocated for government expenditures through the Consolidated Fund, in line with public financial management regulations.

“The law allows for unused tax refund funds to be used for other government obligations. If the Finance Minister believes the funds were misused, he must provide detailed evidence,” he said.

Dispute over tax refund account

The controversy began when Dr Forson, in his presentation of the 2025 Budget, revealed that over the past eight years, GH¢29.1 billion had accumulated in the Tax Refund Account, but only GH¢12 billion had been disbursed for actual tax refunds.

He claimed this left GH¢16 billion unaccounted for or misapplied.

Dr Forson described the account as having been turned into a “slush fund,” arguing that the funds were not properly channelled through the Consolidated Fund, as required by law.

He insisted that the previous administration must explain how the money was utilised and provide evidence of the expenditures.

“The Tax Refund Account exists to reimburse businesses and individuals who have overpaid taxes. Instead of returning the money to taxpayers, the previous government used it for other purposes that were not legally sanctioned. We must correct this anomaly to restore fiscal discipline,” Dr Forson said during his presentation.

Responding to the Finance minister, Dr Amin Adam rejected the claim that the funds were misapplied, stressing that the law allows for the unused portion of tax refunds to be used for government expenditures.

He also questioned why the Finance Minister had not provided detailed evidence of any financial mismanagement.

“If Dr Forson claims that these funds were used improperly, he must specify exactly how and where they were misapplied. The Controller and Accountant General manages government funds, and every transaction is documented. Where is the evidence?” he asked.

Payments to contractors and economic concerns

Dr Amin Adam also defended payments made from the account, including those to contractors and service providers such as Strategic Mobilization Limited (SML).

He insisted that all financial transactions were conducted within the legal framework and managed by the Controller and Accountant General, not the Finance Minister.

“The funds were not hidden or illegally spent. Government finances operate under a single treasury account system, meaning money is moved around for various commitments. This is standard practice,” he said.

He warned that the government’s attempt to portray the tax refund funds as misapplied could have broader economic consequences, particularly as Ghana undergoes an International Monetary Fund (IMF) review.

He expressed concern that such claims could affect investor confidence and Ghana’s credit ratings.