The Black Stars of Ghana earned quite a substantial amount of money and bonuses from their participation at the just ended FIFA World Cup in South Africa. The Internal Revenue Service (IRS) has a matter of course is demanding tax from the players and officials of the Black Stars through the Ministry of Youth and Sports.

In an interview on “Kokrokoo” Peacefm’s flagship programme, a Tax Consultant, Mr. Eric Boateng, said since FIFA and the government of Ghana gave the team participatory and bonuses respectively, they need to honour their tax obligations.

According to him, Act 592 Section 6 of the Internal Revenue Act, explains the fact that “if you work and earn money in Ghana, you would have to pay tax”. He added that even if you are not in Ghana but you bring the money into the country, you have to pay taxes on it.

This, he said, includes even bonuses.

Referring to Section (1) of the same act, which says “an employer shall withhold tax from the payments of an amount to be included in ascertaining the income of an employee from the employment as prescribed by regulations made under section 114,” he said that the Ministry for Youth and Sports should have withdrawn or deducted the tax from the money before giving it to players.

“On the other hand, the players can come voluntarily to pay the amount as a sign of patriotism,” he added.

“However”, he added; “Parliament can also decide not to withhold or deduct any tax from the money. They are the only body with the power to give such orders or make such decisions and nobody else.”

The IRS has expressed its resolve to employ all legal means to recover from the Ministry of Youth and Sports taxes in respect of bonuses and other earnings paid to the players and officials of the Black Stars.

The IRS had earlier dismissed suggestions that the service might play it soft in recovering the taxes from the ministry or even stop pursuing the ministry for the revenue simply because it involved government institution.

“We don’t favor government institutions; we don’t favor anybody. We do our work according to the law,” the Acting Head of Public Relations of the IRS, Mr. Kwasi Bobie-Ansah, told the Daily Graphic on Tuesday, July 27.

He said the ministry would also be required to pay penalty on the taxes which it was required to withhold if it failed to do so.

The Ministry of Youth and Sports had earlier revealed that it has not withheld taxes on the bonuses and other earnings of players and officials of the Black Stars, despite prior notification by the IRS to do so.

The Chief Director of the Ministry, Mr. Abdulai Yakubu explained that since the beginning of the payments of bonuses to players, there had not been any occasion when taxes had been deducted from them and so the ministry only continues with the status quo.