"Why do I have to pay taxes on the goods I sell when it is clear that the authorities just misuse the money? Tell me...I don't see why I should. In fact, you cannot convince me to."
These are words from a frustrated entrepreneur Nana (my co-founder at ServLed) and I had lunch with yesterday. She is a very bright, highly educated but street smart business woman who gave up her corporate executive job to start her own business. Her concerns are not unique. Everyday we encounter business men and women who share the same sentiment.
First of all, there is the issue of the tax authorities. Most entrepreneurs and businesses complain that they literally have to beg them to perform their duties. In one such instance, it took the entrepreneurs several visits to their local tax office over a two month period before a tax account was created for their organization. They were apparently turned back on a couple of occasions with PAYE checks in hand. Reason? The physical address of their office had to be confirmed for their tax file to be created. And, the gentleman who had to perform this duty just happen not to be in the office whenever they visited, called or sent a driver to pick him up. It finally took the entrepreneurs walking into the office of the deputy commissioner to have a file created for them.
Then of course, there is the issue of allegations of non-compliance from state institutions. You also have countless judgement debt cases. Then there are allegations of illegal disposal of state owned properties and inappropriate use of tax payers' money by the tax authorities themselves. Now these allegations while not confirmed, still create a perception that it is pointless to comply. "Why should I pay my taxes...?"
This is question from our entrepreneur and countless others.
Nana and I spent almost an hour trying to make a case to our concerned entrepreneur. As difficult as it was, we explained why it is our civic and christian duty to pay our taxes. I could however feel her pain as she made argument after argument trying to justify her stand. We eventually managed to convince her to comply...and she did. In fact, we helped setup her accounts, factoring in the requisite sales tax to preserve her desired margins.
As painful as it is to bite sometimes, it is our duty to pay our taxes. We cannot evade taxes with the excuse that tax revenue will be misappropriated by the authorities. We just become part of the problem instead of contributing to the solution. This generation of business men and women must contribute to achieve the desired change. Ghana, the 3rd most corrupt country?!? Things have to change and it starts with each one of us. Let's do our part and place the burden on our leaders to do the same.
At ServLed, we believe that African businesses can operate with integrity and still be profitable. We teach this, practice this and refuse to do business with parties who insist on doing otherwise.
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