Farley And Partners

SERVICE PROCESSES OF THE DOMESTIC TAXES DEPARTMENT

Service Processes of the Domestic Taxes Department

Service Processes

Taxpayer registration starts with Taxpayer Identification Number (TIN) registration, which is mandatory to do business with GRA and other entities.

TIN registration

  • Purchase TIN application form (Reg. 1) for D50 from any GRA office
  • Complete form, sign and date
  • Attach the relevant document(s)
  • Submit completed form to GRA office
  • TIN processing is completed within 24 hours

Forms required to be filled by client

TIN registration form

Documents to be submitted by clients

Individuals

  • National ID
  • Birth Certificate
  • Passport

Corporate

  • Memorandum & Articles of Association
  • Partnership Deeds
  • Constitution
  • Letter of application

Service Processes

  • New businesses process their registration with Single Window Business Registration Office at the Ministry of Justice.
  • Existing (already registered) businesses must be cleared of all tax liabilities by GRA before they are registered at the Single Window Business Registration.

Forms required to be filled by client

Business registration form

Service Processes

  • In addition to the tax types that are automatically registered for a taxpayer at the point of TIN registration, a taxpayer may apply to be registered for a particular tax type.
  • Taxpayer completes the Obligation registration form
  • Submit form to GRA
  • Taxpayer is notified of the registration

Forms required to be filled by client

  • Obligation registration form
  • VAT Registration Form

Service Processes

A return is a form that captures a taxpayer’s business transaction and tax information for a particular period and tax type. Returns filing takes the following steps

  • Acquisition of the prescribed form(s) from GRA
  • Complete the form(s)
  • Submit the form(s) to GRA
  • Annual returns are due by the 31 March or three months after the end of the year to which they relate.

Monthly returns are due 15 days after the end of the month to which they relate. Taxpayers may request for an extension to file their tax returns

Forms required to be filled by client

  1. Corporate Income Tax return
  2. Individual Income Tax Return
  3. PAYE Monthly Schedule
  4. VAT Return
  5. Fringe Benefit Tax Monthly Return
  6. Pool & Betting Tax Return
  7. Withholding Tax Monthly Schedule
  8. Capital Gains Tax Return
  9. Payroll Tax Schedule (Expatriate Quota)
  10. Rental Income Tax Return
  11. Air travel Tax DeclarationForm
  12. Quarter Tax Declaration Form
  13. Taxpayer Request Form

Documents to be submitted by clients

Withholding tax certificates – requirement for corporate and individual taxpayers

Service Processes

Payments are required when the taxpayers monthly or annual return has an outstanding tax liability. It is also required when a taxpayer has a payment plan, is making quarterly payments, has an audit or enforcement assessment etc. Payments may be made in one of the following methods

  • Payments at GRA Offices – this is where a taxpayer can directly pay to the GRA office. Cheque payments above D100,000 can only be made using the Real Time Gross Settlements (RTGS) system through commercial banks.
  • Payments to GRA partner Banks – Payments can also be made to the GRA partner banks, i.e. Guaranty Trust Bank, Access Bank, Ecobank and Key Stone Bank.
  • Real Time Gross Settlements (RTGS) – this is where a taxpayer advises his/her bank to transfer the tax payment to the GRA Central Bank account. The banks will then issue a transfer advice (swift copy) which is then submitted to GRA for receipting.

Forms required to be filled by client

  • Paying-in-slip
  • GRA/Domestic Taxes Pay-in-slip
  • RTGS Pay Advise

Documents to be submitted by clients

Swift copy

Service Processes

Enforcement & Debt Management Process – Enforcement & Debt Management strategies guide officers in ensuring that taxpayers adhere to their tax obligations. Enforcement actions are generally taken on defaulters (non-filers and non-payers). Enforcement procedures involve

  • The sending of reminders
  • Raising of assessments including penalty and interest for late or non-filing and late or non-payment of tax
  • Issuing demand notices (a request for immediate payment of outstanding tax liabilities)

Debt Management is the administrative and legal processes taken to recover overdue taxes from persistent defaulters. The process includes

  • Recovery of tax from third parties (persons holding money on behalf of a taxpayer)
  • Collection by distress and sale. This is where a tax collector is appointed and mandated by the Commissioner General to enter the taxpayer’s premises, identify asset(s), which will be put on auction after 14 days (perishables 1 day) if a taxpayer fails to honour his/her tax liability.
  • Seizure of goods – this is where the taxpayer’s goods are seized and sold by public auction to recover the outstanding tax liability.
  • Temporary closure of business – this is where the taxpayer’s business premises is closed for not more than 14 days for non-payment of tax. A banner is displayed at the entrance of the business premises with the message ‘Closed for non-payment of taxes under section 215 of the Income & VAT Act 2012’
  • Departure prohibition notice – this is where a taxpayer is lawfully restricted from leaving the country without the payment of the tax liabilities due.
  • Court action – this is where the taxpayer is prosecuted for defaulting.

Service Processes

The GRA operates a self-assessment regime which allow taxpayers to calculate their tax liabilities themselves. Where there is reason to believe that the taxpayer’s declaration is not correct, GRA will conduct audit exercises. Audit and compliance exercises are conducted to verify and confirm the taxpayer’s compliance with the laws and accuracy of the taxpayer’s tax calculation. Taxpayers (businesses) may be selected for an audit based on

  1. The taxpayer’s history of compliance or non-compliance
  2. The amount of tax paid or payable by the taxpayer
  3. The class of business conducted by the taxpayer
  4. Intelligence information
  5. Random case selection
  6. Any other matter that is considered relevant for the assurance of revenue collection

Service Processes

This is the section responsible for gathering intelligence information and investigating taxpayers that failed to comply with their tax obligations. It involves analyzing GRA and third party data to identify high-risk taxpayers requiring investigation. Cases that may be investigated include

  1. Suspected tax fraud (tax evaders)
  2. Non-registrants
  3. Defaulters in filing and payment
  4. Tax avoiders

Service Processes

Handles cases where taxpayers dispute GRA’s tax assessments and other decisions. Objections and Appeals have three stages

Objection to GRA – this is where the taxpayer disputes GRA’s assessments or decisions. The steps to be followed are

  • Acquire and complete the Objection Form
  • Acquire and complete relevant tax returns making declaration of undisputed tax
  • Make payment of undisputed tax
  • Submit the form and the Return to GRA

Due date for submission of objection is 30 days from the original due date of the tax assessment or decision.

Taxpayers may request for an extension of time to file an objection

Appeal to the Tax Tribunal – The Tax Tribunal is an independent body headed by a High Court Judge. It hears cases brought by taxpayers who are not satisfied with the GRA’s decisions on their objections. The steps to be followed are

  • Acquire and complete the Tax Tribunal Review Form
  • Provide evidence to proof that the assessment or decision is not a true reflection of their tax position
  • Submission of form and attachments to the Tax Tribunal
  • Notify GRA of the Appeal to the Tax Tribunal

Due date for submission of appeal is 30 days from the date of the decision of GRA on the taxpayers objection.

Appeal to the Court of Appeal – In the event a taxpayer is not satisfied with the decision of the Tax Tribunal, he/she may challenge the decision at Court of Appeal. The steps to be followed are

  • Acquire and complete Court of Appeal Form
  • Provide evidence to proof that the assessment or decision is not a true reflection of their tax position
  • Submit form with attachments to the Registrar of the Court of Appeal
  • Notify GRA of the Appeal to the Court of Appeal

Due date for submission of appeal is 30 days from the date of the decision of the Tax Tribunal.

Forms required to be filled by client

  • Objection form
  • Taxpayer Request Form
  • Tax Tribunal Review Form
  • Court of Appeal Form

Documents to be submitted by clients

  • Documentary evidence to support objection
  • Documentary evidence to support appeal

Service Processes

This function is the taxpayer assistance section designed to help taxpayers understand their tax obligations and procedures of fulfilling those obligations. Taxpayers may be referred to this section by the operational units or they can walk into any GRA Tax office for assistance. The contact us form on the website could also be used.

Service Processes

This is the section responsible for the collection of road tax, motor vehicle license and other traffic related fees. The steps to be followed are

  • Acquire approval from The Gambia Police Force (testing certificate, approval or renewal of licenses)
  • Acquire a tax clearance certificate
  • Present motor vehicle insurance policy
  • Pay relevant charges in accordance with the tariff
  • GRA officers issue you with relevant license documents (discs and/or receipt of payment)

Service Processes in Customs and Excise Department

Clearance of Imported Goods through Customs

  • A Direct Trader Input (DTI) Centre at GRA headquarters has been established to allow clearing and forwarding agents to have direct access to the customs system called ASYCUDA in order to register their declarations. ASYCUDA connection is also provided to operators/Agents who have internet facilities at their office premises. All border stations are connected to the ASYCUDA automated system. Declaration processing clearance through customs can be done within 24hrs
  • Freight forwarders, clearing agents, Importers, Exporters, Transit agents and shipping agencies have to apply to become ASYCDA users, using the prescribed form.
  • After declaration input, a printed copy is submitted to the appropriate customs office for processing.
  • At the processing stage the ASYCUDA system selects the declaration for examination which can be physical, documentary or be exempted from examination according to the selectivity criteria applied for the declaration being processed.
  • After the completion of the examination, the system calculates and assesses the duty to be paid.
  • Payment of duties and taxes can be done either at the GRA Customs Offices, GRA Partnered Commercial Banks or the (Real Time Gross Settlement (RTGS) system using Commercial Banks
  • Tariff Classification rates and taxes are applied according to the different schedules of the Customs Act 2010.

Service processes in detail

Commercial operators are allowed to operate private or bonded warehouses were un-customs or manufactured goods can be kept under customs control. To operate a warehouse, you will need the following

For Bonded Warehouse

  • You will complete an application form C26 downloadable
  • Application Form should be accompanied with a site and building plan of the proposed warehouse
  • A payable annual fee of D40,000.00 or D100,000.00 triennially.
  • A penalty of D5000.00 for late payment after 31st January.
  • A security bond from a financial institution
  • Annual license issued by the Commissioner General

Form required to be filled by clients

Form C26

  • Complete an application form
  • Application fee of D10,000.00 annually and D20,000.00 for spirits and alcohol
  • D5000.00 for late payment after 31st January
  • Security bond from a financial institution
  • manufacturers are liable to an excise tax in accordance with schedule 12 of the Customs Act 2010
  • Annual license issued by the Commission General
  • It is administered under the Gambia Investment and Export Promotion Agency (GIEPA)
  • The applicant will complete an application form, obtainable from GIEPA
  • Procedures on transit goods through the port of Banjul to third country destinations has been harmonized in accordance with the ECOWAS convention relating to road transit of goods – Inter State Road Transit (ISRT).
  • Customs takes a leading role in this process by ensuring that the goods are properly secured and sealed in accordance with the ISRT Convention.
  • All transit goods are bonded with the GCCI the national guarantor to secure against any potential revenue lost.
  • The ASYCUCDA System, which is now extended to all Border stations, facilitates the documentation process of transit goods from the departure office to the exit office at the border.
  • A joint Trade Facilitation Committee, comprising representatives from Ministries of Finance and Trade, Customs, GCCI and other stakeholders has also been instituted to monitor and supervise the implementation of the ISRT.
  • No taxes are levied on goods in transit. A processing fee of 1.5% on CIF is imposed

CED Notice Board

Upcoming Activities

A Common External Tariff for ECOWAS member states was adopted by the council of ministers “government decision A/DEC.17/01/06 of 12th January 2006”. The Common External Tariff is one of the instruments integrating the ECOWAS region into a common market, which will eventually pave the way to the creation of a Customs Union in West Africa.

The CET agreed on common rates for over 5899 tariff lines of 10 digits. The CET is structured into five tariff bands:

  • 0% for Essential social goods
  • 5% Goods of primary necessity, raw materials and specific inputs
  • 10% inputs and intermediate goods
  • 20% Final Consumption goods
  • 35% Special inputs for economic development.

It has now been agreed that the CET will come into effect from the 1st of January 2015. This will mean that all member states are supposed to upload the CET harmonize tariff on their respective customs automated system and start applying the 5 tariff band of the CET on the scheduled date.

The Gambia is moving progressively to meet the deadline date for implementation. A national committee has been formed and a focal point identified for the implementation process. A national Road Map has also been drawn and plans have already been initiated for the national sensitization of major stake holders.

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