Financial Sector Recovery Levy Act, 2021 (Act 1067)

ARRANGEMENT OF SECTIONS

Imposition of Financial Sector Recovery Levy

1. Imposition of Levy on profit before tax of a bank

2. Application of Levy

3. Levy not an allowable deduction

4. Profits affected by Levy

5. Assessment of Levy payable

6. Payment period of Levy

Administration, Collection and Recovery of Levy

7. Administration of Levy

8. Collection of Levy

9. Payment of Levy into Consolidated Fund

10. Recovery of Levy

Miscellaneous Provisions

11. Regulations

12. Interpretation

PURPOSE

AN ACT to impose a special levy to be known as the Financial Sector Recovery Levy on banks to raise revenue to support the financial sector reforms and to provide for related matters.

DATE OF ASSENT

31st March, 2021.

ACT

Imposition of Financial Sector Recovery Levy

1. Imposition of Levy on profit before tax of a bank

There is imposed by this Act a Financial Sector Recovery Levy of five percent on the profit before tax of a bank.

2. Application of Levy

Despite any provision to the contrary in an enactment relating to a tax holiday or an exemption from a direct tax or an indirect tax applicable to a bank, the Levy imposed under section 1 applies to a bank other than a rural bank or a community bank.

3. Levy not an allowable deduction

The Levy is not an allowable deduction for the purpose of ascertaining the chargeable income of a person under the Income Tax Act, 2015 (Act 896).

4. Profits affected by Levy

(1) The Levy is payable in respect of profit before tax. (2) The Minister may, at the expiration of the 2024 year of assessment, review the Levy.

5. Assessment of Levy payable

(1) A bank covered under this Act shall submit an estimate of the Levy due for that year of assessment together with the annual income tax estimate of that bank. (2) Where the bank has not

(a) been assessed for tax in the two preceding years of assessment, or

(b) furnished

(i) a return or an estimate in accordance with the Income Tax Act, 2015 (Act 896), or

(ii) a statement of the estimated Levy payable in accordance with subsection (1),

the Commissioner-General may proceed to make an assessment of the Levy payable by that bank.

6. Payment period of Levy

(1) The Levy assessed for a year of assessment is payable on or before the following dates of each quarter of the year of assessment:

(a) 31st March;

(b) 30th June;

(c) 30th September; and

(d) 31st December.

(2) Despite subsection (1), payment of the Levy for the 2021 year of assessment shall be made in three instalments on or before

(a) 30th June, 2021;

(b) 30th September, 2021; and

(c) 31st December, 2021.

Administration, Collection and Recovery of Levy

7. Administration of Levy

The Commissioner-General shall administer the Levy in accordance with the Revenue Administration Act, 2016 (Act 915).

8. Collection of Levy

The Ghana Revenue Authority is responsible for the collection of the Levy.

9. Payment of Levy into Consolidated Fund

The Commissioner-General shall pay the Levy collected under this Act into the Consolidated Fund.

10. Recovery of Levy

For the purpose of enforcing the payment of the Levy, the provisions of the Revenue Administration Act, 2016 (Act 915) and the Income Tax Act, 2015 (Act 896) relating to collection, enforcement, refund and penalties shall apply to the collection of the Levy as if the Levy is collected under the specified enactments.

Miscellaneous Provisions

11. Regulations

The Minister may, by legislative instrument, make Regulations to provide for the efficient and effective implementation of this Act.

12. Interpretation

In this Act, unless the context otherwise requires,

"bank" means a bank regulated under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930);

"Commissioner-General" means the Commissioner-General appointed under section 13 of the Ghana Revenue Authority Act, 2009 (Act 791);

"Levy" means the Financial Sector Recovery Levy imposed under section 1; and

"Minister" means the Minister responsible for Finance.