Wednesday, April 3, 2013

Prostitution Is A Crime But They Must Pay Tax


Prostitution may be an illegal venture in the country but its returns surely can be channeled to generate revenues to enhance the progress of the economy.

As many Ghanaians and the government eschew the practice, the missing item is whether they are supposed to pay tax or not.

Mr. Mike Kofi Afful, President of the West African Union of Tax Institutes which is under the auspices of the Economic Community of West African States (ECOWAS), has sought to enlighten the public about the tax obligations of prostitutes in the country.

According to Mr. Afful, commercial sex workers in the country are mandated to pay tax on their incomes and so, implored them to meet their obligations to the tax administrators.

Expounding his assertions on Radio Gold’s newspaper review Wednesday morning, he disclosed that “Income from trade, profession, vocation is taxable…Prostitution is seen to be a crime under our laws but income from prostitution is taxable because prostitution is seen to be a vocation. So, income earned from prostitution is taxable.”


                                                     Chris Brown Evaded Tax Payment 



He also chided the Ghana Revenue Authority for allowing the organizers of the Hope City Concert which was held at the Ohene Djan Sports Stadium in Accra on 5th March this year to evade their tax responsibilities to the country.

He argued that the organizers of the concert, Charter House, are mandated by law to pay 15% tax on the money paid out to the headline performer, Chris Brown.

It would be recalled that American R&B super star, Chris Brown, known in music circles as Chris Breezy took to stage a month ago to thrill thousands of music fans with his electrifying performances to mark the launch of the Hope City project by RLG, main sponsor of the concert.

Chris Brown was reported to have received a whopping $ 1million for making an appearance on the Ghanaian entertainment platform.

According to the tax expert, Charter House together with RLG should have compelled Chris Breezy to pay tax to the country since the money paid him was received as his income.

He therefore admonished the Revenue Authority to oblige the organizers to pay the required tax to the nation.

“I expect the Ghana Revenue Authority to have gone in for that money. It should have been from Chris Brown but since he’s not in the country, then, those who brought him in; ie Charter House or whoever brought him in must be held responsible to pay the tax. So, the Ghana Revenue Authority should go after them and then collect the tax because it is taxable,” he said.

Source: Ameyaw Adu Gyamfi/Peacefmonline.com/Ghana

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