Features
The controversy rages on: Churches’ statutory tax obligation to the state …to pay or not to pay?
In this beautiful country called Ghana, Churches are not required to pay taxes on their properties to the state because they are considered rendering services to God. They are not required to also disclose their finances in whatever form to government. They are, therefore, exempt from payment of income tax even though they receive other favourable treatment under the law.
This practice has existed for many years during which the country had a limited number of churches which concentrated on the word of God and did not make profit margin their primary objective. Churches generate their income through offering, pledges, sponsorships, memorials, capital campaigns as a normal practice.
PROLIFERATION OF CHURCHES AND NON-PAYMENT OF TAXES
With the emergence and proliferation of thousands of churches across the country, some of which even do not have auditoriums or places of worship but use classrooms and rented accommodation for their worshipping and other day to day activities, thus generating a lot of revenue and income from their operations, it has now become imperative to revisit the law that exempts churches from the payment of taxes to the state and decide otherwise. It appears that the commercial aspect of most of these churches has overridden the main objective of rendering services to God and the cardinal objective has been to amass wealth at the expense of the State. Even the big time orthodox or traditional churches which in the past were not used to this practice, have also joined the bandwagon of commercialising their operations to raise funds for their upkeep. Some of them have established a well-furnished auditoriums and theatres with recreational facilities, where funerals, weddings, parties, private meetings, seminars and conferences among others, are held regularly and fees are charged for the use of the facilities.
PROFIT-ORIENTED PRIVATE AND ONE-MAN CHURCHES
As for the private and one-man churches, the least said about them the better. Some of them have instituted consultation fees for members who are interested in seeing their pastors, evangelists and so-called men of God for special healings and deliverances. Some of these men of God have used their intelligence to come out with special water and anointing oil which they sell at a fee to their members or congregation. Consultation fees, attract various sums of money from gullible and interested members who want to see their pastors for problems solving. Let us also don’t forget that some of these churches have established and running their own television and radio stations. These are some of the avenues being adopted to raise funds for their churches and the pastors. I was told of a particular one-man church where the pastor imposed a levy on members just to purchase a car for himself.You cannot rule out some of these so-called pastors and men of God asking their members to fill their wardrobes with clothes and other items for them and their wives.
PUBLIC ARGUMENT ABOUT CHURCHES PAYING TAX TO THE STATE
Some of these negative behaviours from leaders of some religious organisations across the country have necessitated the recent argument from the public as to whether churches should pay taxes on their incomes since they have commercialised their operations in various ways. It is recalled that in August last year, this particular issue of churches paying tax to the state came up at a forum in Accra. At that forum, the Commissioner General of the Ghana Revenue Authority (GRA), made it emphatic that his outfit would conduct investigations into the activities of all churches in the country with the view to tax them based on their level of business transactions. Whether what he said a year ago has been carried out is something we need to know as Ghanaians. It appears that at times, people placed in positions of authority made profound policy statements but failed to act on them and that has been the bane in our dear country.
PASTORS’ ARGUMENT ON PAYMENT OF TAX BY THE CHURCH
Currently, some of our well established and profound pastors in the country have joined the fray in this particular argument as to whether the church should pay tax to the state. For instance, Dr. Lawrence Tetteh, the leader of the Worldwide Miracle Outreach was reported to have taken a swipe at people who were demanding the taxation of churches by the state. He said in a speech recently that, “Today, very ignorant people wake up and say the church should be taxed. That is an insult from the economic point of view; that is double taxation.” He went further, “Remember in the history of the Bible, we had ungodly people who asked the church to be taxed. What people lose sight of is that, the people you think are very rich, you can count them; you live in Ghana, how many pastors use Land Cruisers? If you take the few of us (pastors) that seem to be doing well, we are not more than ten”. According to him if you look at Ghana, but for the church, the nation would have been as illiterate as some nations of the sub-region. We should applaud the church, he said. He asked; When you tax the church what do you gain?
DR LAWRENCE TETTEH’S VIEWPOINT ON THE CHURCH
Honestly, my good friend Dr. Lawrence Tetteh has admitted that only few pastors including him, which I can confidently agree, are doing well. Dr. Tetteh is my greatest pal and I know his commitment to his pastoral duties and not like other profit making pastors, but I shudder to disagree with him about his views on pastors not to pay tax, even though they have commercialised their activities to make money. Yes, some of these churches have complemented the efforts of government by providing mission schools to train our youth in addition to supporting community activities and these are quite commendable. However, in a situation in which the chunk of these small churches continues to hide behind the pulpits to amass wealth without paying a dime as taxation to the state is to me not relevant and should not be entertained whatsoever.
REV ODONKOR’S ASSERTION ON THE CHURCH BEING TAXED
The Clerk of the General Assembly of the Presbyterian Church of Ghana (PCG), Rev. Dr. Gordon Nii Noi Odonkor, also in an address, admitted that it was just and fair for the government to tax churches on business they do. To him, churches are not island in the running of the State and once they engaged in a profit-making venture, they needed to be taxed on those activities. However, he said, offertory and tithes, especially where they were used for social work, could not be described as business for them to attract tax. He said in an interview with the press that “if churches collect offering and use the offering for charity work, it will be unfair to tax them. But where we do business and especially where these businesses are for individual pastors and these monies go into individual pockets, I think it is Christian, it is fair and it is just to tax them like all other businesses”.
I believe most Ghanaians including me, appreciate the thought and viewpoint of Rev. Odonkor on this particular issue and will suggest that the law that exempts churches from paying tax to the State should be re-examined and amended so that churches operating on commercial lines should be roped in the tax net to generate enough revenue to carry out developmental agenda of government. So many avenues to generate revenue for the state, remain untapped while the people are being constantly burdened with all kinds of taxations that are making life unbearable for Ghanaians.
The Ghana Revenue Authority must initiate moves to ensure that individual churches that are scattered across the country and are making profits at the expense of the State are duly registered and taxed for the betterment of our dear country.
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By Charles Neequaye
Features
The Tema palaver
There is a legend about what Osagyefo Dr Kwame Nkrumah wanted Tema to be like.
According to the prophets of the pre-coup era and those who claimed to have known the Osagyefo’s plans, Tema was being gradually developed to become a model city, a workers’ paradise, not a Chinatown.
Today if you see the Meridian Hotel, you’ll think it has just suffered from a bomb attack. Kokotako recently told me he was sure the once elegant hotel was suffering from a virus infection.
Tema, it has been said, was meant to be a thoroughly planned heavenly-city under a presidential blueprint to be eventually decorated with two border posts. You couldn’t enter using bush paths and grasscutter routes. No rat-catching gimmicks!
According to the sages of those times, non-residents of the city on a visit would have been required to go through a bureaucratic and medical procedure.
First you’ll have to produce your passport cum visa, or a travelling certificate, lassez de passe or carte identite (identity card). Your forehead would have to be examined by an expert to make sure you are not a magician. No magical shows in the city. No Kofi Larteh!
You’ll also be required to produce a medical certificate to prove that you’ve been vaccinated against yellow fever, typhoid and poverty. You don’t come to the city to become a beggar. No way!
In a nutshell, the city was meant to become the model city of West Africa, the Vatican of Sikaman; a state within a state, a wonderland of no mean accolade.
The 1966 coup was a national tragedy although Ghanaians hailed the coup. To the Osagyefo, it was a personal tragedy. His dreams of a glorious harbour city, for instance, with its night-time glow and daytime glitter were washed away as the sub-machine guns rattled the signal of the advent of Ghana’s woes.
Nkrumah probably lamented the coup for one main reason that Tema would never be what he visualised it to become. Some people say the tears he shed were laden with an anathema, a bit of which has probably been visited upon Tema.
Yes, visit Tema and you’ll see vestiges of the old plan, now adulterated and totally confused with gross lack of maintenance, irregular development, over-flowing manholes, dark streets at night, beggars, and people who would have been denied access to the comforts of the city, had the Osagyefo been alive.
Tema is no longer for workers. It is now a free-for all, a boiling pot of all ethnic groups like fufu-eating Ashantis, butter-smearing Fantes, akple-eating Ewes, kontomire-swallowing Akwapims, khebab-roasting northerners and Brong self-imposed exiles who would eat nothing apart from unripe plantain. Very delicious, you know.
The shoe-shine boys are in their hundreds and wayside chop bars especially at night are common feature. You’ll be glad to meet an ex-seaman at a drinking bar talking about the good old days when Black Starline was indeed a national line. You’ll notice a retired seaman by his swag for the unmistakable seaman trademark in the gait.
Tema of today is famous for its brand of Pidgin English. It is next to the Nigerian version which is acknowledged by linguistic experts as the cremé of pidgin. Not good for SSS students, though.
The city is also famous for its high cost of living. Those who come from Accra and Kumasi to live there often pack bag and baggage after a few months and run away without anybody chasing them. Sometimes they leave their jackets behind. Life is no joke.
If you can, however, stay in Tema for over five years without suffering from financial constipation, then you are qualified and baptised to live in the ‘hard’ cities of the world including Hanoi, and Bombay. As for Mogadishu, I doubt it. Sometimes you have breakfast once in two weeks and that’s not a cheap situation. You’ve got to bow.
Surprisingly those who live in Tema and have got used to the rough weather don’t want to live anywhere else. They love the city, the breeze, the pidgin.
Today, the new SSNIT flats are giving the city a new class just as fast as the deteriorating conditions of the Tema Development Corporation (TDC)-owned houses are de-beautifying the city. No maintenance whatsoever and the corporation is beset with problems and matters that need redress.
At this very moment, the Tema Tenants Association (TTA) and TDC are at each other’s throat, in a dangerous horseplay that can degenerate into something else. The corporation intends to sell its rented units, meaning that if you can’t buy the house you’re living in, then you’ve got to quit and probably go to your hometown for good.
So whether you are a rich business tycoon or a mandated church mouse, you have to, within three months from now, make ready over three million cedis for the place you are occupying.
There is, however, an alternative. Poor tenants who can’t afford the outrageous prices will from October 1 pay 300 per cent on rent. A single room will now cost 7,000 cedis per month.
Members of the tenants’ association who are ready to take to the streets in protest have accused TDC of having woefully failed as a landlord because it has not maintained buildings it is supposed to maintain.
Some of the buildings are in a real mess.
The association has called for a commission of enquiry to investigate the matter to ensure that propriety and neglect no longer become good bedfellows and also to enable the poor worker and his family to have a place to lay their heads without being intimidated with outright sales and high rents.
The Tema Development Corporation (TDC) itself has a lot of things happening in there, the public would be very much interested in knowing. Many things in fact.
I’ll revisit the issue sooner than you’d expect. Watch out for the bombshell!
This article was published on
Saturday, August 6, 1994
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Features
Tears of Ghanaman, home and abroad
The typical native of Sikaman is by nature a hospitable creature, a social animal with a big heart, a soul full of the milk of earthly goodness, and a spirit too loving for its own comfort.
Ghanaman hosts a foreign pal and he spends a fortune to make him very happy and comfortable-good food, clean booze, excellent accommodation and a woman for the night.
Sometimes the pal leaves without saying a “thank you but Ghanaman is not offended. He’d host another idiot even more splendidly. His nature is warm, his spirit benevolent. That is the typical Ghanaian and no wonder that many African-Americans say, “If you haven’t visited Ghana. Then you’ve not come to Africa.
You can even enter the country without a passport and a visa and you’ll be welcomed with a pot of palm wine.
If Ghanaman wants to go abroad, especially to an European country or the United States, it is often after an ordeal.
He has to doze in a queue at dawn at the embassy for days and if he is lucky to get through to being interviewed, he is confronted by someone who claims he or she has the power of discerning truth from lie.
In short Ghanaman must undergo a lie-detector test and has to answer questions that are either nonsensical or have no relevance to the trip at hand. When Joseph Kwame Korkorti wanted a visa to an European country, the attache studied Korkorti’s nose for a while and pronounced judgment.
“The way I see you, you won’t return to Ghana if I allow you to go. Korkorti nearly dislocated her jaw; Kwasiasem akwaakwa. In any case what had Korkorti’s nose got to do with the trip?
If Ghanaman, after several attempts, manages to get the visa and lands in the whiteman’s land, he is seen as another monkey uptown, a new arrival of a degenerate ape coming to invade civilized society. He is sneered at, mocked at and avoided like a plague. Some landlords abroad will not hire their rooms to blacks because they feel their presence in itself is bad business.
When a Sikaman publisher landed overseas and was riding in a public bus, an urchin who had the impudence and notoriety of a dead cockroach told his colleagues he was sure the black man had a tail which he was hiding in his pair of trousers. He didn’t end there. He said he was in fact going to pull out the tail for everyone to see.
True to his word he went and put his hand into the backside of the bewildered publisher, intent on grabbing his imaginary tail and pulling it out. It took a lot of patience on the part of the publisher to avert murder. He practically pinned the white miscreant on the floor by the neck and only let go when others intervene. Next time too…
The way we treat our foreign guests in comparison with the way they treat us is polar contrasting-two disparate extremes, one totally incomparable to the other. They hound us for immigration papers, deport us for overstaying and skinheads either target homes to perpetrate mayhem or attack black immigrants to gratify their racial madness
When these same people come here we accept them even more hospitably than our own kin. They enter without visas, overstay, impregnate our women and run away.
About half of foreigners in this country do not have valid resident permits and was not a bother until recently when fire was put under the buttocks of the Immigration Service
In fact, until recently I never knew Sikaman had an Immigration Service. The problem is that although their staff look resplendent in their green outfit, you never really see them anywhere. You’d think they are hidden from the public eye.
The first time I saw a group of them walking somewhere, I nearly mistook them for some sixth-form going to the library. Their ladies are pretty though.
So after all, Sikaman has an Immigration Service which I hear is now alert 24 hours a day tracking down illegal aliens and making sure they bound the exit via Kotoka International. A pat on their shoulder.
I am glad the Interior Ministry has also realised that the country has been too slack about who goes out or comes into Sikaman.
Now the Ministry has warned foreigners not to take the country’s commitment to its obligations under the various conditions as a sign of weakness or a source for the abuse of her hospitality.
“Ghana will not tolerate any such abuse,” Nii Okaija Adamafio, the Interior Minister said, baring his teeth and twitching his little moustache. He was inaugurating the Ghana Refugee and Immigration Service Boards.
He said some foreigners come in as tourists, investors, consultants, skilled workers or refugees. Others come as ‘charlatans, adventurers or plain criminals. “
Yes, there are many criminals among them. Our courts have tried a good number of them for fraud and misconduct.
It is time we welcome only those who would come and invest or tour and go back peacefully and not those whose criminal intentions are well-hidden but get exposed in due course of time.
This article was first published on Saturday March 14, 1998
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