General News of Thursday, 3 July 2014
The Ghana Football Association (GFA) has denied reports that Brazilian authorities deducted a 17 per cent tax from the USD3million that was airlifted to the Black Stars as appearance fee, a day before they played Portugal at the World Cup.
According to the GFA President, Kwesi Nyantakyi, any report that the taxes were taken at the airport before the team returned “was not true, fictitious and factually inaccurate.”
A member of the Ministry of Youth and Sports World Cup Committee, Kwadwo Adu Asare, had said last Monday that the Black Stars would each lose about US$17,000 out of the US$100,000 tournament appearance fees as taxes to the Brazilian government.
But addressing a post-World Cup press conference in Accra on Wednesday, Mr Nyantakyi debunked the assertion, stressing that no money had been paid yet as tax.
He said the team’s taxes on the appearance fees will be paid from the FIFA prize money when the football world governing body honours it.
He said different countries have different laws on exchange control and that in most countries you can carry money provided you declare it.
“So we declared. The players declared whatever monies they had in Brazil. If you hide the money and you are caught, then that becomes an offence.”
Mr Nyantakyi who was responding to questions on whether the team paid taxes on the US$3million in Brazil explained that all bonuses and appearance fees paid to players and officials were subject to tax and that the taxes are paid whether in Ghana or wherever games are played.
“So for all the matches we play here taxes are deducted but for the World Cup competition specifically, the tax is determined by the domestic law on taxation of the host country.”
He said in 2006 Ghana paid taxes on bonuses that were paid in Germany and that the tax rate was 21.1 per cent at the time.
In 2010 the tax on the bonuses was 17 per cent in South Africa.
“In 2014 I don’t know the tax rate in Brazil but this is how you pay the tax. When FIFA pays you your money, they retain 10 per cent of that money. They keep it till you honour your tax obligation. The host country will send tax request to FIFA and then FIFA will sort it out with the affected country,” he said.
“And so when you determine the amounts that are paid, they will deduct the taxes from Zurich and transfer it to the relevant authorities of the host country. So I can assure you that the taxes on the money will be paid,” the GFA President added.