According to GRA PAYE is a tax deducted from an employee’s income
An audit review of the 2018 payroll of the Ghana Post Company Limited has disclosed that the Company deducted GHS3,447,961.45 as PAYE from the salaries of employees but did not transfer same to the Ghana Revenue Authority (GRA).
According to the Ghana Revenue Authority (GRA), Pay As You Earn or PAYE is a tax deducted from an employee’s income and is paid by an employer on behalf of the employee.
The tax is charged on all income of an individual in employment, whether it is received in cash or in kind. The employer must file monthly PAYE returns on behalf of the employee on or before the 15th day of the month following the month in which the deduction was made.
Although the Ghana Post Company Limited made the deductions, the money was never paid to the GRA.
This was disclosed in the Auditor-General’s report on the public accounts of Ghana, public boards, corporations, and other statutory institutions for the period ended 31 December 2020.
The A-G has recommended to the management to ensure that the deduction of GHS3,447,961.45 is paid to the GRA to avoid penalty payment on the amount outstanding.
Ghana Post also paid Mats & Associates, an HR consulting firm, a sum of GHS48,625.00 during the period under review for HR services without proof of work done.
The A-G has asked the management to ensure that the amount of GH¢48,625.00 is duly accounted for, failing which they should be held liable.
In addition, Ghana Post was unable to recover an amount of GHS1,511,431.83 as outstanding debt owed to the Company for Bulk Mail and EMS services, respectively.
The Postal and Courier Services Regulatory Commission Act, 2003 (Act 649) repealed the Ghana Postal Services Corporation Act, 1995 (Act 505) but remains silent on the role/mandate of the Company.
The A-G has, thus, advised management to, as a matter of urgency, liaise with the Sector Ministry, the legislative drafting division of the Attorney-General’s Department, to develop or amend Act 649 to include the functions of the Company.