How long do taxpayers in Ghana have to keep records, and what are the penalties for non-compliance?

According to the Revenue Administration Act 2016 (Act 915) (RAA), all taxable persons must maintain records of all receipts and payments, revenue and expenditure, and all assets and liabilities for a period of not less than six years from the end of the year to which they relate. This means that taxpayers must keep their invoices, receipts, accounting records, withholding tax exemption letters, and other documents that support their tax positions for at least six years, in case they are required by the tax authorities for audit or verification purposes.

The Revenue Administration Act (RAA) imposes an obligation on taxpayers to maintain necessary records and documentation in Ghana, and any failure to comply may result in penalties.

The RAA also imposes penalties for failing to comply with the recordkeeping requirements. For example, a person who fails to keep records as required by the RAA is liable to pay a penalty of 500 currency points (equivalent to 5,000 Ghanaian cedis) for each month or part of a month that the failure continues. A person who fails to produce records when requested by the tax authorities is liable to pay a penalty of 1,000 currency points (equivalent to 10,000 Ghanaian cedis) for each month or part of a month that the failure continues.

A person who falsifies, conceals, destroys, or otherwise disposes of records is liable to pay a penalty of 5,000 currency points (equivalent to 50,000 Ghanaian cedis) or imprisonment for a term not exceeding two years, or both.

Beyond the tax law requirements, proper recordkeeping helps provide evidence that may be required to defend a position during a tax audit.