Home Headlines KPMG Report Highlights GRA’s Data Inaccuracy and SML’s Contribution to Tax Revenue

KPMG Report Highlights GRA’s Data Inaccuracy and SML’s Contribution to Tax Revenue

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Ghana Revenue Authority
Ghana Revenue Authority

The recent KPMG report has shed light on the Ghana Revenue Authority’s (GRA) provision of unreliable data prior to the engagement of Strategic Mobilisation Limited (SML). According to the report, GRA’s data was inconsistent with figures provided by the Energy Sector Levy Act (ESLA) and the National Petroleum Authority (NPA).

For instance, in 2019 and 2020, GRA reported significantly lower petroleum liftings compared to ESLA and NPA data. This discrepancy raised concerns about tax evasion on the unreported volumes.

The report highlighted that GRA’s inability to provide system-generated petroleum liftings data for the period from January 1, 2018, to April 30, 2020, hindered the assessment. Consequently, KPMG relied on ESLA data as the most reliable source for GRA’s pre-SML era petroleum liftings.

Analysis revealed that GRA’s declared data constituted a substantial portion of ESLA’s figures, indicating inaccuracies and incomplete reporting by GRA.

However, since SML’s inception in May 2020, reported liftings by GRA have aligned more closely with NPA and ESLA datasets, suggesting improved accuracy and transparency.

KPMG assessed the impact of SML’s operations on tax revenue, estimating incremental revenue of GH₵12.98 billion from May 2020 to December 2023. However, the analysis identified discrepancies in GRA and SML’s methodology, necessitating adjustments to accurately attribute revenue increments to SML.

Furthermore, the report highlighted SML’s contributions to enhancing monitoring and accountability in the petroleum sector. SML conducts real-time monitoring of petroleum outflows at depots and implements reconciliation processes to identify potential revenue losses, promoting transparency and compliance.

Overall, the KPMG report underscores the importance of accurate data and collaborative efforts between regulators and industry players to ensure effective tax administration and revenue generation in Ghana’s petroleum sector.

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