TABLE OF CONTENTS - GRA

GRA 2nd Strategic Plan 2015 - 2017


Vision, Mission and Core Values Vision

To be a world-class Revenue Administration recognised for professionalism, integrity and excellence

Mission

To mobilise revenue for national development in a transparent, fair, effective and efficient manner

Core Values

The Authority is guided by the following core values:

Integrity: To be fair and honest

Fairness: To provide consistent and standardised service Teamwork: To work together to achieve our goals

Innovation: To build a culture that readily adapts to changes in the operating environment Professionalism: To apply the requisite knowledge, skills and abilities to meet stakeholder expectations

3

4



TABLE OF CONTENTS

5

VISION, MISSION AND CORE VALUES LIST OF TABLES, FIGURES AND GOALS ACRONYMS FOREWORD BY THE MINISTER OF FINANCE MESSAGE FROM THE BOARD CHAIRMAN MESSAGE FROM THE COMMISSIONER-GENERAL EXECUTIVE SUMMARY

3 5 6 8 9 10 11

PART 5: MONITORING, EVALUATION AND REPORTING

74

PART 6: GOVERNANCE STRUCTURE

82

1.1 BACKGROUND 1.2 LEGAL BACKGROUND 1.3 ROLE OF GRA IN THE COUNTRY’S DEVELOPMENT 1.4 TAX POLICY ENVIRONMENT 1.5 RELATIONS WITH EXTERNAL STAKEHOLDERS AND DEVELOPMENT PARTNERS

15 17 18 18

PART 7: CHANGE MANAGEMENT AND COMMUNICATION

PART 1: INTRODUCTION

PART 2: EVALUATION OF

1ST

STRATEGIC PLAN

2.1 INTRODUCTION 2.2 MAJOR ACHIEVEMENTS 2.3 CHALLENGES AND LESSONS LEARNT PART 3: OPERATING ENVIRONMENT

3.1 INTRODUCTION 3.2 MACROECONOMIC ENVIRONMENT 3.3 SITUATIONAL ANALYSIS PART 4: STRATEGIC PLAN 2015 – 2017

4.1 INTRODUCTION 4.2 STRATEGIC GOALS 4.3 STRATEGIC PLAN PROCESS 4.4 RISKS AFFECTING THE STRATEGIC PLAN 4.5 STRATEGIC PRIORITIES 4.6 TIMELINES 4.7 GOALS, OBJECTIVES, INITIATIVES AND HIGH LEVEL ACTIVITIES…

14

18 20 21 21 22 24 25 25 27 28 29 29 30 32 32 34 40

5.1 INTRODUCTION 5.2 MONITORING AND EVALUATION FRAMEWORK ??? 6.1 INTRODUCTION 6.2 GOVERNANCE STRUCTURE 7.1 INTRODUCTION 7.2 CHANGE MANAGEMENT 7.3 COMMUNICATION PART 8: EXPECTED BENEFITS

LIST OF FIGURES, TABLES AND GOALS FIGURES Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: TABLES

GRA Headquarters Organisational Structure Tax Revenue Percentage to GDP 2007 – 2014 Contribution of Revenue Sources to total tax Revenue in 2014 S.W.O.T. Analysis Diagram Balanced Scorecard Perspectives on GRA’s Strategic Goals Levels of Actionable Activities for Strategic Goals GRA Programme Governance Structure Change Management Interaction Model The Change Commitment Curve

Table 1: Timelines Table 2: Targets for Monitoring and Evaluation Framework

75 75 83 84 86 87 88 89 90

16 26 26 27 30 31 83 87 88 34 76

6



ACRONYMS

AEO

Authorised Economic Operator

IT

Information Technology

CET

Common External Tariffs

MDP

Management Development Programme

BRS

COCBOD CPA

DANIDA DFID DT

DTRD

ECOWAS FITAB GCMS GDP

GHABA GIFF

GIFMIS GIS

GIZ GOTA GRA

GSGDA GUTA

HNWI HR

HRIS ISO

Business Requirement Specifications Ghana Cocoa Board

Corporate and Public Affairs

Development Cooperation of Denmark

Department For International Development Domestic Tax

Domestic Tax Revenue Division

Economic Community of West African States Free Income Tax Advisory Bureau

Ghana Customs Management System Gross Domestic Product

Ghana Hairdressers and Beauticians Association Ghana Institute of Freight Forwarders

Ghana Integrated Financial Management Information System Geographical Information System

Deutsche Gesellschaft fur Internationale Zusammenarbeit GmbH

Global Open Trunking Architecture Ghana Revenue Authority

Ghana Shared Growth and Development Agenda Ghana Union of Traders Associations High Net Worth Individual Human Resource

Human Resources Information System

International Organisation for Standardisation

M&E MOU MTO

NDPF NFSL NHIL

NRCD PAYE PMS

PNDCL RGD

RPM

SECO SIC

SMCD SOP SP

SOS SRS

STO

SWOT TOR

TRIPS TTP

VAT

Monitoring & Evaluation

Memorandum of Understanding Medium Taxpayers Office

National Development Policy Framework National Fiscal Stabilisation Levy National Health Insurance Levy

National Redemption Council Decree Pay As You Earn

Performance Management System

Provisional National Defence Council Law Registrar General’s Department

Research, Planning and Monitoring

State Secretariat of Economic Affairs of Switzerland Standard Industrial Codes

Supreme Military Council Decree Standard Operating Procedure Strategic Plan

Scheme of Service

Systems Requirements Specifications Small Taxpayers Office

Strengths, Weaknesses, Opportunities, Threats Terms of Reference

Total Revenue Integrated Processing System Total Tax Person

Value Added Tax

In this document any reference to ‘The Authority’ refers to the Ghana Revenue Authority

7

8



FOREWORD

BY THE MINISTER OF FINANCE

The establishment of the Ghana Revenue Authority (GRA) was a decisive measure by Government to modernise the country’s tax system. The current tax reforms are an integral part of the ongoing Public Financial Management (PFM) reforms. These reforms are aimed at ensuring efficient and transparent resource mobilisation and utilisation under the Ghana Shared Growth and Development Agenda II (GSGDA II).

The current unfavourable global economic conditions coupled with Ghana’s own internal challenges make it imperative that the Authority improves revenue mobilisation to bridge the revenue-expenditure gap and help stabilise the fiscal situation. 2nd

The Strategic Plan of GRA comes at an opportune time to support the 2015 Budget captioned “Transformational Agenda: Securing the Bright Medium Term Prospects of the Economy’’ through which Government expects to promote investment, create jobs and reduce poverty. Government recognises and appreciates the commitment and hard work of the Authority in mobilising revenue. Nonetheless the Authority must aim to raise the Tax-to-GDP ratio to bridge the fiscal gap and bring it at par with the Sub-Saharan average of 20% of GDP.

Government therefore expects the Authority to improve its processes and procedures, implement innovative measures, strengthen enforcement mechanisms and broaden the tax base to maximize tax revenue. Government will continue to formulate appropriate policies aimed at promoting efficient administration of the tax system. Government is confident that while adhering to the principles of fairness and integrity, the Authority will strive to enhance public confidence in revenue administration and improve tax compliance.

The successful implementation of the 2nd GRA Strategic Plan is of utmost importance and Government pledges its full commitment and support. Seth Terpker Minister for Finance

MESSAGE FROM THE BOARD CHAIRMAN

The vision of the Ghana Revenue Authority to be a world class revenue administration recognised for professionalism, integrity and excellence sets the strategic direction for the organisation and forms the basis of the goals and objectives in the 2nd Strategic Plan. The Plan outlines the strategic, administrative and operational efforts that will enable the Authority consolidate its integration and modernisation agenda. It is expected that the successful implementation of this Plan will deepen the current organisational reforms and result in a substantial increase in revenue mobilisation.

Non-oil tax revenue is projected to increase from GHS 21,967.21 million in 2015 to GHS 29,791.24 million by 2017 which represents a nominal growth of 36%. The average clearance times at the ports will reduce by 8% in our bid to promote investment and trade facilitation.

The Authority is committed to delivering quality and timely service to reduce taxpayers’ burden and promote voluntary compliance. The Board will, as a priority, encourage capacity building of GRA staff to ensure client satisfaction and meet the challenges of tax administration. The Board is highly appreciative of the hard work that went into developing this document and will endeavour to provide the support and guidance needed for the successful implementation of the 2nd Strategic Plan. Ralph Tufuor Board Chairman

9

10

MESSAGE FROM THE COMMISSIONER-GENERAL

The Ghana Revenue Authority (GRA) has made considerable progress in integrating the erstwhile Internal Revenue Service (IRS), the Customs, Excise and Preventive Service (CEPS), the Value Added Tax Service (VATS) and the Revenue Agencies Governing Board (RAGB) into a single corporate organisation.

The 1st Strategic Plan (2012 – 2014) focused on laying the foundation of the new organisation by establishing integrated management structures at both the Headquarters and the Field Offices. The 2nd Strategic Plan redefines and realigns the medium term strategic priorities of the Authority while incorporating the experiences and lessons learnt from the 1st Strategic Plan.

The Authority continues to be a strategic partner in Ghana’s development and is constantly challenged to provide revenue to ensure sustainable growth. The 2015 non-oil revenue target for the Authority is approximately GHS 22 billion and is projected to grow at an average rate of 27% annually over the Plan period. The measures adopted to steer the efforts of the Authority to meet expectations are detailed in the following five (5) strategic goals: • Optimal revenue collection in a cost effective manner • Responsive client service • Compliance with statutory non-revenue obligations • A transparent tax environment to enhance voluntary tax compliance • A professional and credible organisation

The expected outcomes of these goals are strengthened systems and processes and highly responsive clients. A rigorous monitoring and evaluation mechanism will be instituted as part of measures to track performance.

I am confident that with the available resources, we will deploy a well-trained, dedicated and committed staff, to fulfil the mission of the Authority to mobilise revenue for national development in a transparent, effective and efficient manner. George Blankson Commissioner-General



11

EXECUTIVE SUMMARY

The Ghana Revenue Authority was established by the Ghana Revenue Authority Act 2009 (Act 791) as a semi-autonomous body charged with the task of assessing, collecting and accounting for tax revenues. The core mandate of the Authority is to ensure maximum compliance with all relevant laws in order to ensure a sustainable revenue stream for government and a controlled and safe flow of goods across the country’s borders. The rationale behind the establishment of the Authority was to provide a comprehensive approach to the administration of taxes and customs duties and the reduction of the compliance burden on taxpayers through the provision of efficient services. The Authority has chalked major successes with the integration and modernisation of processes and procedures.

Evaluation of 1st Strategic Plan

The 1st Strategic Plan (2012 - 2014) was developed to build the foundations of the newly created Authority. The vision, mission and core values statements were crafted and used to define strategies and activities for the Plan period. An evaluation of the progress made towards the achievement of the goals, strategies and activities of the 1st Strategic Plan indicated that the Authority had taken significant steps towards the review and enactment of major tax legislation, the integration and modernisation of domestic taxes, improvement in trade facilitation, transparency and accountability, customer care and the preparation of strategic documents. The evaluation also identified challenges faced and some lessons learnt during the implementation of the Plan. The recommendations have been incorporated into the 2nd Strategic Plan.

Operating Environment

The Ghanaian economy has made remarkable strides in the last two decades. This continued in 2014 with the continued expansion and modernisation of the Agricultural Sector, the successful completion of the Ghana Gas Company pipelines, the launch of the third Sovereign Bond of US$ 1 billion and the conclusion of an agreement for US$ 1.7 billion by the Ghana COCOBOD in September 2014. Nonetheless, structural challenges characterised by large fiscal and balance of payment deficits have plagued the economy in recent times. The Ministry of Finance in the medium term (2015 - 2017) has adopted several home-grown policies and prioritised key development issues bordering on Tax Policy, Structural Measures, Debt / Equity Management and Export-led Development to address the imbalances.

2nd Strategic Plan

The 2nd Strategic Plan (2015 - 2017) is developed on the lessons learnt from the 1st Strategic Plan which elapsed in 2014. The 2015 - 2017 Strategic Plan provides the blueprint for consolidating the gains made in the implementation of the 1st Strategic Plan. The Authority has adopted the Balanced Score Card approach focusing on the four perspectives of Financial processes, Customer relations, Internal processes and building organisational capacity

12


through Learning and Innovation, in order to ensure that focus is not unduly skewed towards revenue collection. The Plan is built on five over-arching pillars which constitute the Strategic Goals: • Optimal Revenue Collection in a cost effective manner • Responsive Client Service • Compliance with statutory non-revenue obligations • A transparent tax environment to enhance voluntary tax compliance • A professional and credible Organisation

Monitoring, Evaluation and Reporting

Monitoring and Evaluation of the 2nd Strategic Plan will be undertaken in line with the guidelines in the National Development Policy Framework. The annual operational plan, strategic measures and key performance indicators, will be used for monitoring and evaluation. These are captured in the Monitoring and Evaluation Framework.

Governance Structure

The governance structure to steer programmes for effective and timely delivery of projects in the 2nd Strategic Plan consists of the following: • Public Financial Management (PFM) Steering Committee • GRA Board • GRA Management Steering Committee • GRA Implementation Committees • Project Management Committees

Change Management and Communication

The Authority seeks to adopt a change management approach that incorporates the identification of change challenges, development of initiatives to manage identified change challenges and mechanisms to monitor effectiveness. An effective communications programme will be established to ensure that Change Agents and Change Champions stationed in all offices share information on anticipated changes, solicit support and participate in various initiatives. A key element of the change management approach is to build commitment to attain the strategic outcomes of the Plan.

Expected Benefits

The efficient and effective delivery of the strategic goals stipulated in the 2nd Strategic Plan of the Ghana Revenue Authority is expected to generate the following results: • Improved revenue mobilisation • An employer of choice which attracts and retains skilled staff • Highly motivated staff who exhibit professionalism • Enhanced corporate image of the Authority • Enhanced public confidence in the Authority • Improved ease of doing business • Improved international image for trade facilitation


13

14



15

1.1 Background

The Ghana Revenue Authority (GRA) was established by the Ghana Revenue Act 2009 (Act 791) as a semi-autonomous body charged with the task of assessing, collecting and accounting for tax revenues. The core mandate of the Authority is to ensure maximum compliance with all relevant laws in order to ensure a sustainable revenue stream for government and the controlled and safe flow of goods across the country’s borders. As part of efforts to improve compliance, the Authority is required to assist taxpayers to understand and meet their tax obligations by providing robust and comprehensive advice.

Part

1:

INTRODUCTION

In the five years since its inception, the Ghana Revenue Authority has built a solid foundation by completing the physical integration of the four erstwhile revenue institutions namely the Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS), the Value-Added Tax Service (VATS) and the Revenue Agencies Governing Board (RAGB). Geographically spread across the country with 180 Offices1 and staff strength of approximately 6,400 as at December 2014, the Authority is poised to forge ahead with determination to provide optimal services to both the Government and the taxpaying public.

Organisational Governance Structure

The Board of Directors is the governing body of the Authority as set out in the enabling Act. The Board is responsible for the proper and effective performance of the functions of the Authority and for making recommendations to the Minister of Finance on tax policy, reforms and legislation.

The day-to-day management of the Authority is the responsibility of the CommissionerGeneral, who is assisted by three Commissioners in charge of the three Divisions of the Authority namely, the Customs Division (CD), Domestic Tax Revenue Division (DTRD) and Support Services Division (SSD).

1

This covers all GRA offices including Sub-offices, Stations and Collection Points

16



1.2 Legal Background

Figure 1: GRA HEADQUARTERS ORGANISATIONAL STRUCTURE

The functions of the Authority as enacted by Act 791 are:

GRA Board

COMMISSIONER GENERAL

Commissioner Domestic Tax

Commissioner Support Services

Commissioner Customs

Units reporting directly to the Commissioner-General

Deputy Commissioner - Policy & Programmes

Deputy Commissioner - Human Ressources

Deputy Commissioner - Policy & Programmes

Board Secretariat & Legal Affairs

Deputy Commissioner - Large Taxpayer Office

Deputy Commissioner - Finance

Deputy Commissioner - Operations

Modernisation Programme Office

Deputy Commissioner - Medium Taxpayer Office

Deputy Commissioner - Administration

Deputy Commissioner - Preventive

Internal Audit

Deputy Commissioner - Small Taxpayer Office

Deputy Commissioner - Information Technology

Deputy Commissioner - Post Clearance Audit

Risk Management Unit

Deputy Commissioner - Research, Planning & Monitoring Deputy Commissioner - Training & Development

17

Communications & Public Affairs Debt Management, Compliance & Enforcement Internal Affairs Intelligence & Investigations

a) Assess and collect taxes, interest and penalties on taxes due to the Republic with optimum efficiency; b) Pay the amounts collected into the Consolidated Fund unless otherwise provided by Act 791 and other Acts; c) Promote tax compliance and tax education; d) Combat tax fraud and evasion and cooperate with other competent law enforcement agencies and revenue agencies in other countries; e) Advise District Assemblies on the assessment and collection of their revenue; f) Prepare and publish reports and statistics related to its revenue collection; g) Make recommendations to the Minister on revenue collection policy; and h) Provide any other revenue-related functions as directed by the Minister or as assigned under any enactment. The Authority achieves the above functions by administering the following Acts:

a) Internal Revenue Act 2000 (Act 592) b) Taxpayers Identification Numbering System Act, 2002 (Act 632) c) Stamp Duty Act 2005, (Act 689) d) Internal Revenue (Registration of Businesses) Act 2005 (Act 684) e) Petroleum Income Tax Act 1987 (PNDCL 188) f) Casino Revenue Tax Act 1973 (NRCD 200) g) Airport Tax Act 1963 (Act 209) h) National Fiscal Stabilisation Levy Act 2013 (Act 862) i) Customs, Excise and Preventive Service (Management) Act 1993 (PNDCL 330) j) Customs and Excise (Duties and Other Taxes) Act 1996 (Act 512) k) Customs and Excise (Petroleum Taxes and Petroleum Related Levies) Act 1985 (Act 685) l) Customs House Agents Licensing Act 1978 (SMCD 188) m) The Debt Recovery (Tema Oil Refinery Company) Fund Act 2003 (Act 642) n) Value Added Tax Act 2013 (Act 870) o) Communication Service Tax Act 2008 (Act 754) p) Special Import Levy Act 2013 (Act 861) q) Excise Tax Stamp Act 2013 (Act 873) r) Excise Duty Act 2014 (Act 878) s) Special Petroleum Tax 2014 (Act 879)

18


1.3 Role of GRA in the Development of Ghana

Ghana as a Middle Income Country has to rely on its own internal resources and the capital markets to fund its development agenda.

The Ghana Revenue Authority is the lead institution mandated to mobilise tax revenue. The Authority has since its inception in 2009 increased tax revenue as a percentage of non-oil GDP From 12.6% to 16.3%. The attainment of Lower Middle Income Country (LMIC) status however, has led to a reduction in very short and long-term aid inflows and their attendant fiscal and balance of payments challenges. The Authority is expected to maximise revenue to bridge the fiscal gap and to fund the deficit.

The Authority plays a pivotal role in improving the conduct of business in the country. The time required for paying taxes has been reduced through the re-engineering and automation of its business processes. The Doing Business Reports show that the time for paying taxes has reduced from 304 hours in 2007 to 224 hours in 2014. One outcome of the 2nd Strategic Plan will be a further reduction in the time for paying taxes.

The Authority also plays a role in trade facilitation. The introduction of Risk Management techniques and non-intrusive examination of goods by the use of scanners have helped reduce clearance-time for goods at the Ports and thus reduced costs for businesses. The Ghana Revenue Authority is in the forefront of the fight against the illegal importation of contraband and counterfeit goods. The Authority joins forces with other Government Security Agencies to ensure that such goods are not smuggled into or out of the country. This ensures that businesses have a level playing field for their operations.

1.4 Tax Policy Environment

An efficient tax administration thrives within a good tax policy environment. Tax revenue generation is based on clearly defined tax policy measures. The Ghana Revenue Authority remains a key partner of the Tax Policy Unit (TPU) of the Ministry of Finance. This collaboration which is complimented by tapping the expertise of other stakeholders drawn across several economic and social sectors is geared towards formulation of effective and sustainable policies designed to enhance tax revenue collection by the Authority.

1.5 Relations with External Stakeholders and Development Partners

Modern revenue administration depends on multiple players. Understanding the different perspectives of external stakeholders and development partners is critical to the effectiveness of the role of the Authority. In order to ensure that the Authority’s systems and processes meet the expectations of stakeholders, there is the need to focus on engaging with representatives across industry, the tax, legal and accounting professions as well as various sections of the community. The Authority will continue to seek further opportunities to engage with all key stakeholders to improve compliance.


19

The erstwhile Revenue Agencies maintained strong relations with many Development Partners over the years and the Ghana Revenue Authority continues to foster and deepen those partnerships. Key and timely assistance has been provided by the Government of Germany through the Good Financial Governance Programme of the Deutsche Gesellshaft für Zusammenarbeit (GIZ) and the Swiss Government through the State Secretariat of Economic Affairs of Switzerland (SECO) over the 1st strategic period. Similarly over that period, valuable technical assistance was provided by the European Union, the US Department of the Treasury (Office of Technical Assistance), Australian International Development Agency (ATSAID), the World Bank, the International Monetary Fund (IMF) and the Kingdom of the Netherlands. In the 2nd strategic period, the Authority looks forward to continued good relations with the above mentioned and welcomes new partners such as the Government of Denmark through the Development Cooperation of Denmark (DANIDA), the United Kingdom through the Department For International Development (DFID) and KFW Development Bank.

20



21

2.1 Introduction

The 1st GRA Strategic Plan for the period 2012 – 2014 was developed to lay the foundation of the newly created Authority. An evaluation of the progress made towards the achievement of the goals, strategies and activities was conducted at the end of the period. The evaluation identified achievements and implementation challenges. Lessons learnt and recommendations have been incorporated into the 2nd Strategic Plan.

2.2 Major Achievements

2.2.1 Review of Major Tax Legislation

Part

2:

EVALUATION OF 1ST STRATEGIC PLAN

The formation of the Ghana Revenue Authority necessitated the review and harmonisation of the existing Revenue Acts. Significant work was carried out in enacting new Revenue Acts. The Value-Added Tax Act, 2013 (Act 870) and the Excise Act, 2014 (Act 878) were passed. The Customs Bill was laid before Parliament and taken through all the consideration stages. The final draft of the proposed Income Tax Bill was presented to Cabinet for approval.

2.2.2 Integration and Modernisation of Domestic Taxes

The Domestic Tax Revenue Division was created by the physical integration and co- location of operational staff from the former VAT Service and Internal Revenue Service. Segmentation of taxpayers was carried out on defined criteria, with taxpayers classified as Large, Medium or Small and assigned to the relevant offices. These processes resulted in the creation of one Large Taxpayer Office (LTO), 15 Medium Taxpayers Offices (MTOs) and 51 Small Taxpayers Offices (STOs). The offices were structured to provide integrated services to their taxpayers for both direct and indirect taxes on functional lines through three main Units, namely Taxpayer Services, Compliance, Enforcement and Debt Management and Audit Units. Procedure Manuals for the new processes were developed for each of the three main functional lines and approved for operational activities. A Policy and Programmes Department was also established under the Domestic Tax Revenue Division to provide Headquarters functions to support the operational activities of the LTO, MTOs and STOs. The Self-Assessment concept was adopted and applied to all taxpayers in the LTO and the MTOs. Self-Assessment Guidelines were developed and distributed to officers. Taxpayers and officers were educated on the details of this new concept through a series of seminars, workshops and training sessions. The Total Revenue Integrated Processing System (tripsTM) was developed for Taxpayer Identification Number (TIN) registration and Domestic Tax administration. The application was rolled out to twelve (12) Domestic Tax Revenue Division offices.

2.2.3 Trade Facilitation

The two main strategies employed for Trade Facilitation were ‘Facilitate Trade and Investment’ and ‘Prevent the Entry of Prohibited and Restrictive Goods into Ghana’. The Customs Division implemented a number of initiatives under these strategies that include the

23



establishment of an Integrated Border Management Post at Akanu in the Volta Region and the implementation of the Automated Clearance System nationwide.

The Authority will consequently review the Project Management structures and guidelines and continue to build staff capacity in Project Management.

The Authority established an Intelligence and Investigations Unit, a Risk Management Unit and a Post-Clearance Audit Unit. Staff were reassigned to the Units and sensitised on the new processes and procedures.

A successful corporate strategy for effective strategic planning requires collaborative effort and inclusiveness of staff. Employee surveys conducted revealed that communication of the 1st Strategic Plan was a particular area of concern. The absence of a separate Communication Strategy for the Plan resulted in low staff awareness and a sense of detachment from the reforms. The 2nd Strategic Plan will be actively publicised throughout the organisation using various channels. Regular updates on the status of implementation will be provided in staff newsletters.

22

2.2.4 Transparency and Accountability

A Code of Ethics and Conduct was developed and distributed to all staff. An Awards and Recognition Policy was also implemented.

2.2.5 Customer Care

Taxpayers are central to the operations of the Authority. A Taxpayer Charter and a Customer Care Manual were developed and implemented in line with the strategy to introduce an effective Customer Care Programme.

2.2.6 Preparation of Strategic Documents

A number of strategy documents were prepared for implementation during the 2nd Strategic Plan period. These include an Information Technology Strategy, a Human Resource Strategy, a Performance Management Strategy and a Training and Development Strategy.

2.3 Challenges and Lessons Learnt

The Ghana Revenue Authority faced a number of challenges during the implementation of the 1st Strategic Plan. The Authority took cognisance of the lessons learnt from these challenges in the preparation of the 2nd Strategic Plan. The challenges encountered and the lessons learnt are as follows:

2.3.1 Monitoring and Evaluation

The establishment and efficient functioning of a monitoring and evaluation system is an important component in performance management. The absence of an effective monitoring system therefore undermined the ability of the Authority to assess the achievement of set targets. A Monitoring and Evaluation Unit will be established to improve the monitoring process. The Unit will ensure periodic appraisal and reporting of the strategic measures outlined in the 2nd Strategic Plan.

2.3.2 Project Management

Though formal Project Management structures and guidelines were introduced as part of the 1st Strategic Plan to ensure prompt delivery of projects, the scope of the Modernisation Programme turned out to be broader than what could be achieved within the Strategic Plan period. This accounted for the non-completion of some projects. Additionally the strategy to use part-time Project Managers hampered the timely execution of projects.

2.3.3 Communication

2.3.4 Change Management

Reforms of the magnitude embarked on by the Authority demand a robust Change Management Strategy. The integration of four established institutions each with a distinct organisational culture requires a Change Management Strategy that specifically addresses the different attitudes and behaviours. The Authority will review the current Change Management Strategy with the view of enhancing the roles of Change Champions and Change Agents.

24



25

3.1 Introduction

The Ghanaian economy has improved in the last two decades. Despite these improvements structural challenges still persist, characterised by large fiscal and balance of payments deficits. The Ghana Shared Growth and Development Agenda Phases I and II (GSGDA I & II) have adopted a comprehensive Stabilisation and Reform Programme to correct the imbalances that have occurred in recent years and to lay the foundation for transforming the structure of the economy in order to safeguard its positive medium term prospects.

3.2 Macroeconomic Environment

The Ghanaian economy continued to grow at respectable rates, led by the Agriculture Sector. The successful completion of the Ghana Gas Company pipelines and processing plant will facilitate the exploitation of gas from the Jubilee Fields.

Part

3:

OPERATING

ENVIRONMENT

Ghana achieved another successful bid to access the international capital markets with the launch of the third Sovereign Bond of US$ 1 billion and the conclusion of an agreement for US$ 1.7 billion by the Ghana COCOBOD in early September 2014. The Ghanaian economy has also been hit by significant shocks. Economic vulnerabilities have risen significantly as a consequence of a range of factors, including high fiscal and current account deficits, mounting public debt and currency depreciation. Additional factors include:

• The fall in petroleum and other commodity prices • The sluggish inflows of grants from Development Partners • The continued disruption in the supply of gas from the West African Gas Pipeline Company (WAPCo) which has had significant adverse effects on power supply, national output, foreign exchange reserves and tax revenues. To address these imbalances, the Ministry of Finance in the medium term (2015 – 2017) has prioritised key development issues bordering on Tax Policy, Structural Measures, Debt and Equity Management and Export-led Development.

Efficient tax systems contribute to state building, good governance and financing the provision of public goods. Revenue priorities aimed at ensuring and sustaining macroeconomic stability will focus on improving fiscal resource mobilisation and strengthening economic planning and forecasting. Ghana recorded a Tax-to-GDP ratio of approximately 16.3% in the 2014 fiscal year. The medium-term objective is to increase the ratio of tax revenue to GDP to be at par with the Sub-Saharan African average of 20%.

26

3.3 Situational Analysis

Figure 2: Tax Revenue as a Percentage of GDP 2007 – 2014 20.00 % 18.00 % 16.00 % 14.00 % 12.00 % 10.00 % 8.00 % 6.00 % 4.00 % 2.00 % -

27



The Situational Analysis examines the internal capabilities (strengths and weaknesses) and external trends (opportunities and threats) that impact on the operations of the Authority. Figure 4: SWOT Analysis of the Ghana Revenue Authority

Strengths

GDP-OIL GDP-NON OIL

2007 13.14 13.14

2008 12.30 12.30

2009 12.65 12.61

2010 12.87 12.87

2011 14.75 15.41

2012 16.04 16.41

2013 14.90 14.70

2014 17.51 16.25

African Countries tend to rely heavily on international trade taxes. The trend however, is to shift from over-reliance on revenue from imports to domestic revenues. Over the past four years, revenue mobilisation in Ghana has followed this trend. Total tax revenue for the period 2010 to 2014 is as depicted in Figure 3. Figure 3: Contribution of Revenue Sources to Total Tax Revenue 2010 - 2014 8,000.00 7,000.00 6,000.00

GHS ‘MILLION

• Stable political environment • Increase in economic activity • Favourable Government policies • National Identification Project • Untapped informal sector • Assistence from Development Partners • Existence of the Ghana e-Gov platform

4,000.00 3,000.00 2,000.00 -

DT INDIRECT

DT DIRECT

CUSTOMS

• Highly motivated staff • Harmonised and simplified legal framework • Wide geographical coverage • Comprehensive taxpayer education programmes • Improved service delivery • Automation of work process • Utilisation of a universal Tax Identification Numbering System • Ability to increase compliance by matching taxpayer information from the Customs and Domestic Tax Systems

Opportunities

5,000.00

1,000.00

• Trained, experienced and qualified staff

2010 1,064.57 2,443.89 2,442.98

2011 1,367.64 3,746.09 3,604.80

2012 1,650.43 5,403.03 4,689.73

2013 1,888.70 5,900.06 5,372.43

2014 2,654.42 7,622.67 6,865.22

Weakness • Inadequate logistics • Inadequate taxpayer registration database • Lack of comprehensive human resource development policies • Inability to adequately verify data provided by taxpayers • Inadequate skills in ICT • Inadequate tax auditing skills in specialised sectors (eg. telecommunications and extractive sectors) • Poor work ethics • Poor working environment • Inadequate staff distribution • Over-centralisation of the Authority

Threats • Poor record keeping culture of taxpayers • Aggressive tax avoidance schemes and tax evasion • Inaccurate data from taxpayers • Negative public perception about the utilisation of tax revenue • Unfavourable international agreements • High tax expenditures • Cumbersome legislative process • Pervasive smuggling

28



29

4.1 Introduction

The 1st Strategic Plan laid the foundation for the Authority, which included the creation and population of the organogram. The major projects covered were the development of the structures of a Functional Head Office, the Customs Division, the Domestic Tax Revenue Division and the Support Services Division.

The central aim of the 2nd GRA Strategic Plan (2015 – 2017) is to consolidate the gains made in the 1st Strategic Plan. Building on the successes of the 1st Plan, the 2nd Plan will focus on capacity building to develop expertise and skills to enable staff respond to emerging challenges. The goals, objectives and strategies in this Plan have been crafted to support the new direction and priorities of the Authority.

Part

4:

STRATEGIC PLAN 2015 - 2017

4.2 Strategic Goals

A well-balanced Strategic Plan provides a holistic view of the Authority and ensures that necessary attention is given to all facets of tax administration.

The Authority has adopted the Balanced Score Card approach focusing on the four prescribed perspectives of Financial, Customer, Internal Processes and building organisational capacity through Learning and Innovation. This approach will ensure comprehensive coverage of all the perspectives. This is important as the Authority continues to strengthen the integration of operations with cross- departmental functions coordinated from Corporate Headquarters. The Authority has identified five strategic goals as critical areas of focus for the period 2015 - 2017. These are: a) b) c) d) e)

Optimal Revenue Collection in a Cost Effective Manner Responsive Client Service Compliance with Statutory Non- Revenue Obligations A Transparent Tax Environment to enhance Voluntary Tax Compliance A Professional and Credible Organisation

Figure 5 on the next page shows the inter-relation between the four perspectives and the formulation of the five strategic goals.

30



Figure 6: Levels of Actionable Activities for Strategic Goals

Figure 5: Balanced Score Card Perspectives on Strategic Goals for GRA

Mission Vision Financial Perspective

Efficiency Strategy

Growth Strategy

Customer Perspective

Customer Satisfaction Strategy

Process Perspective

Process Improvement Strategy

Learning and Innovation Perspective

HR Capacity Improvement Strategy

Optimal Revenue Collection in a cost effective manner Responsive customer service

A transparent tax environment to enhence voluntary tax compliance Compliance with statutory non-revenue obligations

A professional and credible Organisation

4.3 Strategic Plan Process

The formulation of the Strategic Plan followed a framework recommended by the International Monetary Fund. The process involved deriving objectives from the goals. Initiatives were generated from the objectives. Finally the initiatives were broken down into high-level activities. A structured numbering system was adopted which facilitates navigation between Goals, Objectives, Initiatives and Activities. The first number (Level 1 -x) represents the Goal. The second number (Level 2 - x.x) represents the Objective, the third number (Level 3 –x.x.x) represents the Initiative and the last number (Level 4 - x.x.x.x) represents the Activity. The process and numbering system are illustrated by the diagram on the next page.

Level 1 (x) Strategic Goals WHERE high level direction Level 2 (x.x) Objectives WHAT the organisation wants to accomplish Level 3 (x.x.x) Initiatives HOW collection of finite-duration discretionary projects and programmes, outside the organisation‘s day-to-day operational activities that are designed to help the organisation achieve its targeted performance

Level 4 (x.x.x.x) Activities WHEN detailed breakdown of the strategic initiative into actionable activities

31

32


4.4 Risks affecting the Strategic Plan

The Authority’s exposure to the global and local economic environments presents a number of risks to revenue mobilisation. Generally the compliance behaviour of taxpayers is a major risk. The identified risks include:

a) Sophisticated financial schemes used by large businesses to avoid tax

Multinational companies are using complex systems to avoid tax through tax planning, cross-border structuring and transfer pricing manipulations. The inadequacy of the skills to detect these schemes, especially in the extractive industry and telecommunications sectors, poses a risk. The Authority will improve the skills and professionalism of its employees to deal with these complexities.

b) The Informal Sector

The large informal sector poses a threat to the growth of tax revenue. Left unchecked, this sector could erode the tax base. The Authority will introduce innovative measures to identify and register all eligible taxpayers.

c) Tax incentives and Exemptions

Tax incentives and exemptions are granted to meet specific economic or social objectives. The institution of such schemes without corresponding monitoring mechanisms leads to revenue leakages. The Authority will establish a robust monitoring mechanism for tax incentives and exemptions to deter fraud and abuse.

d) Change in Strategic Direction

Delivery of the Strategic Plan is dependent on the continuity and stability of leadership. A change in strategic direction within the Plan period will jeopardise its delivery. Addressing the leadership challenge will therefore require a carefully planned transition through the identification of potential successors and ensuring adequate coaching, mentoring and handing over processes.

4.5 Strategic Priorities

The fundamental aim of strategic management is to achieve the optimum balance between conflicting demands on resources with the view to ensuring the implementation of organisational strategy. The programmes outlined in the Plan have been prioritised to make the maximum use of the resources available. The agreed criteria for prioritisation was to first complete outstanding initiatives from the 1st Plan and then to carry out initiatives with the potential to mobilise significant revenue in


33

the short to medium term. The prioritisation process was also influenced by dependencies of the initiatives. The agreed timelines are tabulated in the following pages.

34

4.6 Timelines REF. 1.0

1.1. 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7

1.3.8 1.3.9 1.3.10 1.3.11 1.3.12 1.3.13

GOALS/OBJECTIVES/INITIATIVES

GOAL 1 - OPTIMAL REVENUE COLLECTION IN A COST EFFECTIVE MANNER Widen the Tax Net Identify and register potential taxpayers using GIS Review and Evaluate the Rent Tax System Identify and Register taxpayers from the informal sector and other groups such as SHIPPING LINES, GUTA, etc. Identify and Register unregistered members of professional bodies Enhance the use of existing operational systems such as GCMS for data matching and registration Maximise Tax Revenue Determine the Tax Gap Improve Debt Management Develop a mechanism for the taxation of High Net Worth Individuals Develop a mechanism for taxation of e-commerce Redesign tax schemes for the informal sector Minimise Revenue Leakage Strengthen the controls of the Free Zones Regime Strengthen the controls of the Warehousing Regime Strengthen the controls of the Temporary Vehicle Importation Regime Strengthen export and re-export controls Streamline 1% Withholding Tax Collection (GCNet), Exemptions and Reporting processes Develop a mechanism to track all non-exempt activities undertaken by exempt organisations Upgrade Customs Laboratory to meet international standards Build samples and Statement of Composition Library Construct Cargo Examination Centres Strengthen Regulation of the Customs House Agents Develop and Deploy a functional Classification and Valuation System Review the audit program for under/over invoicing, transfer pricing Review the audit program to verify eligibility under tax and customs concession systems

35



2015

X X X X

2016

X X

X

REF.


1.3.15

Review/Develop a rigorous audit program for refunds and drawbacks

1.3.14 1.3.16 1.3.17

X

X

X X

X X

X X X X

X X X X X

X

X

X

2017

1.3.18 1.3.19 1.3.20 1.4 1.4.1 1.5

X

X

1.5.1 1.6

1.6.1 2.0

X

2.1. 2.1.1

X

X

2.1.3 2.2 2.2.1

X

X X X

X X X

X

2.1.2

X

X X X

X X

X

2.2.2 2.3 2.3.1 2.3.2 2.3.3

X

2.3.4 2.4 2.4.1

Review the audit program for ECOWAS origin reduced duty eligibility

2015

Develop audit manuals for specialised sectors (eg. Oil and gas, telecommunications, mining etc)

GOAL 2 - RESPONSIVE CLIENT SERVICE

Improve Client Service Delivery Enhance the effectiveness of the Client Service Units Develop and implement Client Relationship Management system Develop a structured communication system Enhance GRA Corporate Image Establish and promote the GRA brand Develop and Implement Corporate Social Responsibility programme Enhance stakeholder level of tax knowledge Develop abridged versions of tax laws Develop Public Notices for tax education Conduct demographic survey of taxpayers (spread and behaviour of taxpayers across different sectors and incomes) Complete GRA Tax Laws Review Leverage technology to enhance service delivery Improve GRA website

2017

X

X

X X

Build audit capacity for auditors in specialised areas (oil and gas, telecommunications, mining etc)

Build capacity of staff in Post Clearance Audit Increase the percentage of audit staff to taxpayer ratio Develop an appellate system Efficient use of Administrative Resources Streamline the Planning and the Budget processes Strengthen access to Third Party information Improve collaboration with Government and Private Agencies Comply with ECOWAS Common External Tariff Policy Implement ECOWAS Common External Tariff (CET)

2016

X

X X

X X X

X

X X

X X

X

X

X

X

X

X

X X

X

X X

X

X

X

X

X X X

36

REF.

2.4.2 2.4.3 2.4.4 2.4.5 3.0


Develop and Implement Bulk SMS Messaging for Communication Implement online client services scheme (e-registration, e-filing, e-payment) Develop organization-wide Intranet Extend GCMS coverage to all Customs Collections and Stations GOAL 3 - COMPLIANCE WITH STATUTORY NON-REVENUE OBLIGATIONS

3.1

Improve Trade Facilitation and Investment

3.1.1

Simplify and harmonise Customs processes and procedures in compliance with the WCO Revised Kyoto Convention

3.1.2 3.1.3 3.1.4 3.1.5 3.2

3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.3

3.3.1 3.4

3.4.1

Enforce the requirement for the direct submission of manifest from the Shipmaster /Agent to Customs Enhance collaboration with Governmental Agencies to facilitate the timely issuance of Permits, Licenses and Certificates Establish an Authorized Economic Operators (AEO) Programme Develop a concept paper for 24/7 Customs Operations at entry points

2015

Identify Regional and International Agreements, Treaties & Conventions appropriate for Ghana for adoption Undertake a gap analysis of current compliance and required compliance to qualify for formal signature and adoption Improve on staff awareness and implementation of Regional and International Agreements, Treaties and Conventions Strengthen the implementation processes to co-ordinate and ensure smooth operationalisation of various Treaties, Conventions and Agreements

2016

X

X

X

X

X X

X X X X

Enhance preventive operations

Improve the capability of Preventive Operations Establish a Marine Unit Establish a detector Canine Unit Establish close intelligence and investigation communication linkages Establish Integrated Border Management Teams

37



X

X

X X X X X X X X X

2017

REF. 3.5

3.5.1 4.0 X

X

4.1. 4.1.1 4.1.2 4.1.3 4.2

4.2.1 4.2.2

X

X X X

4.2.3 4.3 4.3.1

X

X

Adopt National Single Window concept Develop and Implement National Single Window in accordance with WTO, WCO and UN guidelines GOAL 4 - TRANSPARENT ENVIRONMENT TO ENHANCE VOLUNTARY TAX COMPLIANCE Develop and Implement a Compliance Management Strategy Develop best practice Compliance Management Strategy in line with WCO and OECD Instruments/Recommendations Strengthen Risk Management function

Establish a robust investigation function and capability Improve ease of doing business with GRA

Implement the Self-Assessment System fully Develop a Self-help software for taxpayers

5.1 5.1.1 5.1.2 5.1.3 5.1.4

Review the Segmentation Policy and its implementation Automate and Integrate Operational systems Deploy tripsTM to all DTRD Offices Assign taxpayers registered/ re-registered at RGD to their respective Offices (including DTRD HQ/ Tema Customs registrations) Design and Implement a Data Warehouse System GOAL 5 - A PROFESSIONAL AND CREDIBLE ORGANISATION Strengthen training capacity in GRA Establish GRA Training Institute Upgrade Customs Academy at Kpetoe Establish GRA IT Training Academy Implement the GRA Training and Development strategy Provide an enabling environment for the effective management of human resources

5.2.1

Implement the GRA Human Resources Strategy

4.3.2 4.3.3 5.0

5.2 X


5.2.2 5.2.3 5.2.4 5.2.5 5.2.6

Develop and Implement HR policies and procedures Develop and Implement a Succession Management System Conduct Human Resources Planning

Implement Performance Management System (PMS) Develop and Implement a Comprehensive Scheme of Service (SoS)

2015

2016

X

X

X

X

X

X

X

X X X X X X

X X X X X X

X X X X

X

X X

X

X

X

X

X X

X

X X X X X X

X

2017

X

X X X X

38

REF.

5.2.7 5.2.8 5.2.9

5.2.10 5.2.11 5.2.12 5.2.13 5.2.14 5.3

5.3.1 5.3.2 5.3.3 5.4

5.4.1 5.4.2 5.4.3 5.5


Develop modern physical infrastructure and work environment Determine concept and design of Regional Offices Improve work environment at the Border post / Checkpoints Upgrade selected GRA Offices (DTRD, Customs Collections and Stations)

2015

X

Develop a comprehensive Disaster Recovery Plan Implement a comprehensive Records Management System Enhance employee Well-being Programme within GRA Strengthen Management controls that will ensure good governance, integrity and accountability

2016

X X X

X

X

X

X

X

X

X

X

5.6.2

Adopt integrated solutions for Finance, Procurement and Stores

X

X

X

X

5.6.3 5.6.4

Adopt integrated solutions for HR and Payroll Develop a Transport Management System

Adopt a Case Management System for Internal Affairs

5.7

Institutionalise Change Management within GRA

X X X X X

X

X

5.6.1

X X

Improve governance and integrity

Automate Support Services functions


X

X

5.5.1 5.6

REF.

X

X

X

2017

X

X

Provide a modernised physical structure for Stores

Provide modern equipment for all functional areas Design and commence construction of GRA headquarters Strengthen Programme Office to provide support for the GRA Modernization Programme Improve organizational efficiency and effectiveness Review the organisational structure to improve efficiency and operational effectiveness Develop and Implement a Quality Assurance Management Strategy Establish a Quality Management System in line with ISO standards Develop and Implement a Business Continuity Strategy

39



X

X

X

5.6.5 5.6.6 5.7.1 5.7.2 5.7.3 5.7.4

Automate the GRA Stores & Inventory Control function Automate the GRA Fleet Management function Review Change Management Strategy Establish a monitoring and evaluation mechanism for the GRA Strategic Plan Institutionalise Strategic Planning and Programme Delivery Enhance internal Client Care programmes

2015

2016

X X

X X

X

X

X X X

X X X

2017

X X

X X

40



4.7 Goals, Objectives, Initiatives and High Level Activities GOAL 1: OPTIMAL REVENUE COLLECTION IN A COST EFFECTIVE MANNER

The Authority will focus on increasing domestic revenues and ensuring cost effectiveness in tax administration. This goal is geared towards increasing tax revenue collection through widening the tax net and decreasing the tax gap while concurrently reducing administrative and compliance costs in a fair, transparent, accountable and accessible manner. Special attention will be given to revenue mobilisation from key sectors including the extractive (mining, oil and gas), financial, construction, telecommunications and informal sectors. Special Compliance Management Programmes will be instituted to monitor the performance of High Net Worth Individuals (HNWI). Widening the tax net will continue to be a priority through the identification and registration of potential taxpayers. The Authority will also develop and implement an enhanced Classification and Valuation System and review the Suspense Regimes.

OBJECTIVES 1.1

Widen the Tax Net

1.2

Maximise Tax Revenue

1.3

Minimise revenue leakage

1.4

Efficient use of administrative resources

1.5

Strengthen access to Third Party Information

1.6

Comply with ECOWAS Common External Tariff Policy

41

OBJECTIVE 1.1 WIDEN THE TAX NET Initiative 1.1.1

Identify and register potential taxpayers throughout Ghana using GIS

1.1.1.1 1.1.1.2 1.1.1.3

Identify and map taxpayers in all 10 regions Train staff in GIS Data Management Incorporate GIS into the Taxpayer Services functions

1.1.2.1 1.1.2.2 1.1.2.3

Develop a blue print for the enhanced Rent Tax system Develop an implementation plan Incorporate GIS into the Taxpayer Services functions

1.1.3.1 1.1.3.2

Identify all identifiable groups Register all eligible taxpayers identified

1.1.4.1 1.1.4.2

Identify all professional bodies Register all unregistered professionals identified

1.1.5.1 1.1.5.2

Develop data matching criteria Distribute list of unregistered taxpayers to DTRD offices for registration

Initiative 1.1.2

Review and Evaluate the Rent Tax system

Initiative 1.1.3 Identify and register taxpayers from the informal sector and other groups such as SHIPPING LINES, GUTA, GHABA, GIFF, Ghana Association of Haulage, etc.

Initiative 1.1.4

Initiative 1.1.5

Identify and register unregistered members of professional bodies

Enhance the use of existing operational systems such as GCMS for data matching and registration

42



OBJECTIVE 1.2 MAXIMISE TAX REVENUE Initiative 1.2.1

Determine the Tax Gap

High Level Activity 1.2.1.1

Develop a statistical model to help calculate the Tax Gap

Initiative 1.2.2

Improve Debt Management

High Level Activities 1.2.2.1 1.2.2.2 1.2.2.3 1.2.2.4

Review current provisions to encourage debtors to pay on time Identify and document high risk areas of non-payment of taxes Undertake profiling of non-compliant taxpayers Upgrade staff skills in debt management

Initiative 1.2.3

Develop a mechanism for the taxation of High Net Worth Individuals

Expand intelligence gathering and disseminate information to appropriate High Level Activities 1.2.3.1

user Units

Initiative 1.2.4

Develop a mechanism for taxation of e-commerce


Review the legal framework Develop manual and guidelines for e-commerce taxation Train selected staff on the manual and guidelines Implement the guidelines

Initiative 1.2.5

Redesign tax schemes for the informal sector

High Level Activities 1.2.5.1 1.2.5.2 1.2.5.3

Evaluate tax schemes for the informal sector Develop a manual to manage the informal sector tax scheme Sensitise relevant staff and taxpayers on informal sector tax scheme

43

OBJECTIVE 1.3 MINIMISE REVENUE LEAKAGE Initiative 1.3.1

Strengthen the controls of the Free Zones Regime

High Level Activities 1.3.1.1 1.3.1.2 1.3.1.3 1.3.1.4 1.3.1.5 1.3.1.6

Review Free Zones Controls Provide adequate logistics (vehicles) for effective monitoring of Free Zone activities Train officers in Free Zone processes and procedures Set up an Integrated Free Zones Monitoring Team Develop and implement a strategy to engage Free Zones Operators Monitor and Evaluate Free Zones Control Mechanisms

Initiative 1.3.2

Strengthen the controls of the Warehousing Regime


Identify and review weaknesses in the electronic tracking system Implement the electronic module for in-bond manufacturing Deploy an integrated Warehousing system Introduce electronic access (locks) for warehousing Update the list of perishable goods Review the registration requirement for warehousing

Initiative 1.3.3

Strengthen the controls of the Temporary Vehicle Importation Regime

High Level Activities 1.3.3.1 1.3.3.2

Review controls of Temporary Vehicle Importation Regime (TVIR) (Revised C59) Prioritize and automate all designated stations that admit temporarily imported vehicles

44



Initiative 1.3.4

Strengthen export and re-export controls


Identify the weaknesses in the export and re-export controls Implement the recommendations in the report Sensitize selected staff and clients

Initiative 1.3.5 1.3.5.1 1.3.5.2

Streamline the 1% Withholding Tax Collection (GCNet), Exemptions and Reporting Processes

Review the process of the Withholding Tax Collection Streamline, document and sensitise staff on process

Initiative 1.3.6

Develop a mechanism to track all non-exempt activities undertaken by exempt organisations


Conduct research to identify non-exempt activities of exempt organisations Develop a mechanism to track activities of exempt organisations

Initiative 1.3.7

Upgrade Customs Laboratory to meet international standards


Conduct needs assessment on Customs Laboratory Design Laboratory & Construct a purpose built Customs Laboratory Equip the laboratory Train selected officers to use equipment

Initiative 1.3.8

Build Samples and Statement of Composition Library


Develop modalities based on best practices for the libraries Establish the library

Initiative 1.3.9

Construct Cargo Examination Centres


Design examination bays for specific cargo (Tema, Takoradi, KIA, Paga, Elubo and Tamale) Construct Examination Centres Equip the Examination Centres

45

Initiative 1.3.10 Strengthen Regulation of the Customs House Agents industry High Level Activities 1.3.10.1 1.3.10.2 1.3.10.3

Review the Customs House Agent Licensing system in line with best practice Design and implement a Code of Ethics for Customs House Agents Establish mechanism to monitor individual broker error rates and identify knowledge gaps for re-training

Initiative 1.3.11 Develop and Deploy a functional Classification and Valuation System High Level Activities 1.3.11.1 1.3.11.2 1.3.11.3 1.3.11.4 1.3.11.5 1.3.11.6

Review legal framework for Classification and Valuation Sensitize selected staff and stakeholders on legislation Train staff on Valuation and Classification system Sensitize taxpayers on valuation and classification system Develop Tariff and Valuation Rulings system

Develop Tariff and Valuation Decision Review & Appeals System

Initiative 1.3.12

Review the audit program for under/over invoicing, transfer pricing


Design a process to refer to the Investigations Unit suspected non-compliant beneficiaries Develop and maintain a statistical system that records information on audits undertaken and breaches detected cases referred to investigations Develop a handover plan

Initiative 1.3.13

Review the audit program to verify eligibility under tax and customs concession systems


Design a process to refer to the investigations unit suspected non- compliant beneficiaries Develop and maintain a statistical system that records taskforce activities and audits undertaken breaches detected cases referred to investigations Develop a handover plan after 6 months so that the taskforce actively becomes a part of normal operational activities

46



Initiative 1.3.14

Review the audit program for ECOWAS origin reduced duty eligibility


Develop a capacity building programmes on specialist ECOWAS Origin & Classification auditing Develop and maintain a statistical system that records taskforce activities and audit results Develop sensitisation plan for Taskforce members and related Compliance Management Units

Initiative 1.3.15 Review/Develop a rigorous program for refunds and drawbacks High Level Activities 1.3.15.1 1.3.15.2

Establish formal linkages with Compliance Management - Intelligence, Investigation, Risk Management and PCA Units Develop a capacity building programmes on specialist Refunds/Drawback auditing

Initiative 1.3.16

Develop audit manuals for specialised sectors (eg. Oil and gas, telecommunications, mining etc)


Develop audit manuals Print audit manuals

Distribute audit manuals

Initiative 1.3.17

Build audit capacity for auditors in specialised areas (eg. Oil and gas, telecommunications, mining)


Identify Technical Assistance for capacity building in specialised sectors Conduct audit training in specialised sectors

Initiative 1.3.18

Build capacity of staff in Post Clearance Audit


Bring PCA into a defined Compliance Management structure Develop and implement PCA stakeholder sensitization plan Implement 3 year integrated training for PCA

Initiative 1.3.19

47

Increase the percentage audit staff to taxpayer ratio


Conduct study on audit requirements in GRA Increase audit capacity and improve audit capability

Initiative 1.3.20

Develop an appellate system


Prepare a procedure manual Distribute the printed manual to DTRD Offices

OBJECTIVE 1.4 EFFICIENT USE OF ADMINISTRATIVE RESOURCES Initiative 1.4.1

Streamline the Planning and the Budget processes


Review and document the Annual Action Plans [AAP] and Budget framework guidelines Organise AAP and Budget Seminars for Offices and Stations Disseminate approved guidelines and Budget Questionnaires to Offices and Stations

OBJECTIVE 1.5 STRENGTHEN ACCESS TO THIRD PARTY INFORMATION Initiative 1.5.1

Improve collaboration with Government and Private Agencies

High Level Activities 1.5.1.1 1.5.1.2 1.5.1.3 1.5.1.4 1.5.1.5

Identify, notify and engage with relevant agencies Develop MOUs with collaborating Agencies Establish Joint Standing Committees with relevant Agencies Identify and establish type of information required with the Controller and Accountant General, Budget Division of MOF Interface with GIFMIS for information requirements

48


1.5.1.6 1.5.1.7

Improve collaboration with the Tax Policy Unit of the Ministry of Finance Improve collaboration with MMDAs

OBJECTIVE 1.6 COMPLY WITH ECOWAS COMMON EXTERNAL TARIFF POLICY Initiative 1.6.1

Implement ECOWAS Common External Tariff (CET)


Develop training materials and sensitise stakeholders Approve final version, print & distribute


49

50



GOAL 2: RESPONSIVE CLIENT SERVICE

Service delivery will be improved by leveraging the use of technology to make it easy for each taxpayer to register, file tax returns, process documents and make tax payments. This will lessen the compliance burden on taxpayers making fulfilment of tax obligations easier and less expensive. Taxpayers will be provided with a variety of innovative ways of interacting with the Authority. The Authority will enhance the level of tax knowledge of both taxpayers and staff through the development of a unified system for communicating tax information.

OBJECTIVE 2.1 2.2 2.3 2.4

Improve client service delivery Enhance GRA Corporate Image

Enhance stakeholder level of tax knowledge

Leverage technology to enhance service delivery

51

OBJECTIVE 2.1 IMPROVE CLIENT SERVICE DELIVERY Initiative 2.1.1

Enhance the effectiveness of Client Service Units


Review existing Client Service Unit structures Identify and train Staff Determine Staffing requirements Strengthen the coordination between CPA and Client Services Units Review/ Establish service standards

Initiative 2.1.2

Develop and implement Client Relationship Management system

High Level Activities 2.1.2.1

Develop and implement a client relationship management strategy

Initiative 2.1.3

Develop a structured Communication System


Review the existing communication system for external and internal stakeholders Review GRA stakeholder engagement strategy Implement the Communication Policy for stakeholders (e.g. media training - interviews) Develop feedback mechanism for GRA Implement an effective organisation-wide telephony System (i.e. GOTA system) Deploy Mobile Telephony System for GRA Staff

Initiative 2.1.4

Establish One Stop Customer Service Centres


Develop a Concept Paper for the establishment of Customer Service Centers (including FITAB) Develop a Concept Paper for Mobile Customer Service Centers Implement the provisions in the Concept paper

52



OBJECTIVE 2.2 ENHANCE GRA CORPORATE IMAGE Initiative 2.2.1

Establish and promote the GRA brand


Develop a strategy for the GRA Brand Prepare a schedule for the branding activities Develop and deliver program for stakeholder sensitisation on the new brand

Initiative 2.2.2

Develop Corporate Social Responsibility programme


Develop Policy for Corporate Social Responsibility Develop a long term Corporate Social Responsibility strategy which reflects values of GRA

OBJECTIVE 2.3

ENHANCE STAKEHOLDER LEVEL OF TAX KNOWLEDGE Initiative 2.3.1

Develop abridged versions of tax Laws


Initiate process for the development of abridged versions of the tax laws Print and distribute abridged tax laws Sensitise stakeholders on abridged tax laws

Initiative 2.3.2

Develop Public Notices for tax education


Review / Develop Public Notices (PNs) Print and distribute Public Notices Publish Practice Notes and catalogue Private Rulings

Initiative 2.3.3

Conduct Demographic survey of taxpayers (Spread and behaviour of taxpayers across different sectors and incomes)


Develop, administer and analyse questionnaires Develop targeted tax education programmes based on demographic information

Initiative 2.3.4

Complete GRA Tax Laws Review


Complete the Income Tax Bill and the Revenue Administration Bill Codify the tax laws Develop Regulations for the Tax Laws (develop and support the passage of subsidiary legislation for the parent enactments) Develop, print leaflets / information materials on VAT & Excise Acts

OBJECTIVE 2.4 LEVERAGE TECHNOLOGY TO ENHANCE SERVICE DELIVERY Initiative 2.4.1

Improve GRA website


Redesign / Update GRA website) Establish processes and responsibilities for maintaining the GRA website Publicise website and sensitize stakeholders

Initiative 2.4.2

Develop and Implement Bulk SMS Messaging for Communication


Review current Bulk Messaging Systems (GCMS / tripsTM / Other) Select and Train Staff Deploy Bulk SMS Messaging System

53

54


Initiative 2.4.3

Implement online client services (e-registration, e-filing, e-payment, e.g. mobile phone payments)


Sensitise and educate stakeholders Pilot full uptake of e-filing for Large Taxpayer Office leading to compulsory e-filing for LTO Develop programmes to extend the uptake of e-registration to Medium Taxpayers

Initiative 2.4.4

Develop organization-wide Intranet


Design the GRA Intranet Pilot and roll-out intranet Train staff on the use of intranet

Initiative 2.4.5

Extend GCMS coverage to all Customs Collections and Stations


Engage GCNet to work out modalities for deployment GCNet to migrate re-engineered processes onto the GCMS Carry out nationwide sensitization for all officers / stakeholders Develop concept paper for 24/7 Customs Operations at entry points


55

56



GOAL 3: COMPLIANCE WITH STATUTORY NON - REVENUE OBLIGATIONS

The Authority has non-revenue obligations which relate to trade facilitation, regional integration and preventive services. This goal will focus on improving staff awareness of regional and international treaties and conventions to facilitate implementation. Additional targets include reduction in the time taken to process customs declarations, enhanced preventive services and effective discharge of Agency duties.

OBJECTIVES 3.1 3.2 3.3

Improve trade facilitation and investment Enhance preventive operations

3.4

Identify Regional and International Agreements, Treaties & Conventions

3.5

International Agreements, Treaties and Conventions

Improve on Staff awareness and implementation of Regional and Adopt a National Single Window concept

57

OBJECTIVE 3.1 IMPROVE TRADE FACILITATION AND INVESTMENT Initiative 3.1.1

Simplify and harmonise Customs processes and procedures in compliance with the WCO Revised Kyoto Convention


Undertake Gap analysis of the Revised Kyoto Convention (RKC) Identify and re-engineer all manual processes and working documents (Business Process Re-engineering) Review legal framework Update GCMS to reflect re-engineered processes

3.1.1.7

Complete the revision of the Customs Codes of Instruction

3.1.1.2 3.1.1.5 3.1.1.6 3.1.1.8 3.1.1.9

Formally adopt RKC

Carry out nationwide sensitisation for all officers and stakeholders Publish the finalised Codes of Instruction

Sensitise staff and distribute the Codes of Instruction

Initiative 3.1.2

Enforce the requirement for the direct submission of manifest from the Shipmaster/Agent to Customs


Evaluate and review guidelines for the submission of electronic manifest Sensitise staff & stakeholders Make Commissioner-Generals order to enforce direct submission from foreign Shipmasters and Agents compulsory

Initiative 3.1.3

Enhance collaboration with Governmental Agencies on the need to facilitate the timely issuance of Permits, Licenses and Certificates


Improve linkages and communications with identified Agencies

58



Initiative 3.1.4

Establish an Authorised Economic Operators (AEO) Programme

High Level Activities 3.1.4.1 3.1.4.2 3.1.4.3 3.1.4.4 3.1.4.5 3.1.4.6 3.1.4.7

Develop guidelines for the selection of businesses as Authorized Economic Operators Establish standard Operating Procedures for all AEOs Develop standards for registration and de-registration of AEOs Publish a list of all AEOs Develop a rigorous monitoring and control mechanism to ensure compliance with the stated requirement Organise sensitisation for stakeholders Deploy AEO

OBJECTIVE 3.2

ENHANCE PREVENTIVE OPERATIONS Initiative 3.2.1

Improve the capability of Preventive Operations


Review the Preventive Departmental organogram Undertake staffing requirement Gap Analysis Develop training program and train staff of the Department Equip the Department

Initiative 3.2.2

Establish a Marine Unit


Identify functional needs & equipment Set up and equip the Marine Unit Provide boat handling / storage facilities Allocate and train staff

Initiative 3.2.3

Establish a detector Canine Unit


Identify functional needs & equipment Identify site(s) and construct kennels and care facilities

3.2.3.3 3.2.3.4 3.2.3.5 3.2.3.6

59

Equip the Canine Unit Provide veterinary services for the Canine Unit Allocate and train staff

Develop dog partnerships and on-the-job training programs for each dog and its handler

Initiative 3.2.4

Establish close intelligence and investigation communication linkages


Formalise links with the Intelligence and Investigation Unit Sensitise stakeholders Develop joint activity plans Train teams

Initiative 3.2.5

Establish Integrated Border Management Teams


Identify required stakeholders and formalise linkages

OBJECTIVE 3.3

IDENTIFY REGIONAL AND INTERNATIONAL AGREEMENTS, TREATIES & CONVENTIONS APPROPRIATE FOR GHANA FOR ADOPTION Initiative 3.3.1

Undertake a gap analysis of current compliance and required compliance to qualify for formal signature and adoption


Develop an adoption program of identified Agreements, Treaties & Conventions

OBJECTIVE 3.4

IMPROVE ON STAFF AWARENESS AND IMPLEMENTATION OF REGIONAL AND INTERNATIONAL AGREEMENTS, TREATIES AND CONVENTIONS

60


Initiative 3.4.1

Strengthen the implementation processes to co-ordinate and ensure smooth operationalisation of various Treaties, Conventions and Agreements


Formalise links with the Intelligence and Investigation Unit Sensitise stakeholders

OBJECTIVE 3.5

ADOPT NATIONAL SINGLE WINDOW CONCEPT

Initiative 3.5.1

Develop & Implement National Single Window in accordance with WTO, WCO and UN guidelines


Obtain government buy-in and mandate Determine which stakeholders should be involved in the project & agree project lead authority Establish and empower Single Window (SW) Steering Committee

3.5.1.6

Research, Design and Undertake Project Assessment

3.5.1.2 3.5.1.4 3.5.1.5 3.5.1.7 3.5.1.8

Develop & formalise Public Private Partnership (PPP)

Review and Adopt United Nations SW Compendium Guidance

Determine project requirements, deliverables and timeframes Develop implementation plan


61

62



GOAL 4: TRANSPARENT ENVIRONMENT TO ENHANCE VOLUNTARY TAX COMPLIANCE

The primary goal of the Authority is to ensure compliance with tax and Customs obligations, that taxpayers pay the right taxes and duties on time and meet the obligations set out in the revenue laws. Improvements will be made to administrative systems and processes in order to reduce the compliance burden, as taxpayers will respond positively to simple and harmonised procedures. This goal will see to the development of a central repository for integrated data from multiple third party databases to be used for data analysis and reporting. A system for exchange of information and assistance to District Assemblies will also be developed.

OBJECTIVES 4.1 4.2 4.3

Develop and Implement a Compliance Management Strategy Improve ease of doing business with GRA

Automate and integrate operational Systems

63

OBJECTIVE 4.1 DEVELOP AND IMPLEMENT A COMPLIANCE MANAGEMENT STRATEGY Initiative 4.1.1

Develop Compliance Management Strategy


Determine appropriate Compliance Management model and required GRA structure to maximise Compliance Management effectiveness Improve cross organisation Planning, Supervision and Control Implement, monitor and evaluate the Compliance Strategy Improve corporate understanding of the theoretical and practical aspects of the philosophy

Initiative 4.1.2

Strengthen risk management function


Enhance risk-based compliance selectivity modules Develop a risk selectivity module based on country of origin, commodity, importer and declarant Develop risk selectivity criteria Organise sensitisation for stakeholders- Importers, Declarants etc Develop Risk Management Manuals and Guides Build capacity in Risk Management

Initiative 4.1.3

Establish a robust Intelligence & Investigation function and capability

High Level Activities 4.1.3.1 4.1.3.2 4.1.3.3 4.1.3.4 4.1.3.5 4.1.3.6 4.1.3.7

Restructure organogram of Intelligence and Investigation Unit in line with best efficient practice and with reference to existing consultant option reports Review role and mandate of the units and ensure responsibility lines are clearly established in dealings with other units such as Risk Management, Post Clearance Audit , Tax Audit, Internal Affairs and the Preventive Units Forge formal information communication sharing links with external stakeholders Implement MOUs with identified Agencies

Design and deliver a specialist training program

Improve the capability of the unit to receive confidential information Improve the informant reward scheme

64



OBJECTIVE 4.2 IMPROVE EASE OF DOING BUSINESS WITH GRA Initiative 4.2.1

Implement the Self-Assessment System fully


Develop and print Record Keeping Manual for STOs Promote a proper record Keeping culture among the informal sector Evaluate Self-Assessment Programme Develop, print and distribute Self-Assessment manuals to staff

Pilot Self-Assessment for companies and some Professionals in selected STOs

Initiative 4.2.2

Develop a Self-help Software for taxpayers


4.2.2.4

Evaluate the performance of the Tax Helper (PAYE Return software) Prepare user Business Requirements Specifications (BRS) for the enhanced Tax Returns Preparation Software Prepare System Requirements Specifications (SRS) for the enhanced Tax Returns Preparation software Develop software for preparation of tax returns

4.2.2.7

Evaluate the impact of software

4.2.2.2 4.2.2.3 4.2.2.5 4.2.2.6

Establish process and staff requirements for help desk and customer service Sensitise stakeholders on use of software

Initiative 4.2.3

Review the Segmentation Policy and its Implementation


Evaluate the current Segmentation policy Implement the recommendations of the Evaluation report

OBJECTIVE 4.3

AUTOMATE AND INTEGRATE OPERATIONAL SYSTEMS Initiative 4.3.1

Deploy tripsTM to all DTRD Offices

High Level Activities

4.3.1.1 4.3.1.2 4.3.1.3 4.3.1.4 4.3.1.5

Evaluate rolled-out offices Complete re-registration of all registered taxpayers Develop a Rollout Completion Plan for tripsTM Complete data migration activities for all DTRD offices Sensitise stakeholders on use of the portal

Initiative 4.3.2 4.3.2.1 4.3.2.2

Assign taxpayers registered / re-registered at RGD to their respective offices (including DTRD HQ / TEMA CUSTOMS registrations)

Establish a policy for re-assignment and develop guidelines for implementation Assign taxpayers to their respective offices

Initiative 4.3.3

Design and Implement a Data Warehouse System


4.3.3.2 4.3.3.3

Develop data requirements for Data Warehouse (tripsTM, GCMS, RGD and any other 3rd Party information - the Controller and Accountant General, Budget Division of MOF ) Design, develop and deploy Data Warehouse (DW) Sensitise stakeholders and train users on Business Intelligence (BI) and Data Warehouse

65

66



GOAL 5: A PROFESSIONAL AND CREDIBLE ORGANISATION

A learning organisation acquires knowledge and innovates to survive and thrive in a rapidly changing environment. Learning organisations create a culture that encourages and supports continuous employee learning, critical thinking and risk taking with new ideas.

The main objectives under this goal are to transform GRA into a learning organisation and provide an enabling environment for the effective management of human resources while strengthening management controls that ensure good governance, integrity and accountability. There is the need to continually develop and retain critical skills to improve on the level of professionalism and knowledge as envisioned by the Authority. A substantial portion of the skill set required by staff will come from on-the-job training, coaching and mentoring.

OBJECTIVES 5.1 5.2

Strengthen training capacity in GRA

5.3

human resources

5.4

Provide an enabling environment for the effective management of Improve organisational efficiency and effectiveness

5.5

Develop and implement a Business Continuity Strategy

5.6

integrity and accountability

5.7

Strengthen management controls that will ensure good governance, Automate Support Services functions

Institutionalise Change Management within GRA

OBJECTIVE 5.1 STRENGTHEN TRAINING CAPACITY IN GRA Initiative 5.1.1

Establish GRA Training Institute


Develop a concept paper for the Training Institute Locate and secure land for Training Institute Develop and approve architectural designs Obtain relevant licenses and permits

Initiative 5.1.2

Upgrade Customs Academy at Kpetoe


Build four modern lecture halls and an administrative complex Build two residential blocks for staff and lecturers Build male and female hostels for trainees

Establish Customs Commodity Museum for Training Purposes

Initiative 5.1.3

Establish GRA IT Training Academy


Secure Land for the construction of an IT Training Academy Develop and approve architectural designs

5.1.3.5

Construct Academy

5.1.3.3 5.1.3.4 5.1.3.6

Obtain relevant licenses and permits Procure contractor

Commission Academy

Initiative 5.1.4

Implement GRA Training and Development Strategy


Obtain Management & Board approval for Training & Development Policy, Strategy & Evaluation documents Establish systems to facilitate knowledge sharing throughout the organisation Develop GRA learning Maps Develop and implement a career development plan

67

68



OBJECTIVE 5.2 PROVIDE AN ENABLING ENVIRONMENT FOR THE EFFECTIVE MANAGEMENT OF HUMAN RESOURCES Initiative 5.2.1

Restructure the Human Resource Department

High Level Activity 5.2.1.1 5.2.1.2

Review the Proposal for the restructuring of HR Department Implement the Recommendations

Initiative 5.2.2

Develop and implement HR policies and procedures


Review and collate existing policies Print policies Sensitise staff on policies

Initiative 5.2.3

Develop and implement a Succession Management System

Initiative 5.2.4

Conduct Human Resources Planning

5.2.3.1 5.2.3.2

Develop policies for identification, mentoring and training Institute a Leadership Programme


Conduct Human Resource analysis to identify gaps Develop an action plan

5.2.4.5

Monitor and evaluate plan

5.2.4.3 5.2.4.4

Implement the action plan Train and re-assign staff

Initiative 5.2.5

Implement Performance Management System (PMS)


Develop PMS structure Organise training for management staff on the PMS Pilot the PMS on management staff

Roll out the PMS in phases Institutionalize the Balanced Scorecard Model for Performance Management Measurement in GRA

Initiative 5.2.6

69

Develop and implement comprehensive Scheme of Service (SoS)


Complete the development of the Scheme of Service Develop an implementation plan

Sensitise staff and implement the Scheme of Service

Initiative 5.2.7

Develop modern physical infrastructure and work environment


Complete construction of 10 model offices in the regions Upgrade selected GRA owned offices

5.2.7.5

Locate site and design GRA Headquarters

5.2.7.3 5.2.7.4 5.2.7.6

Provide a modern physical structure for stores

Provide modern equipment for functional areas

Provide a modernized physical structure for Stores

Initiative 5.2.8

Determine Concept of Regional Offices


Develop policies for identification, mentoring and training Design a model of the GRA Regional Office

Initiative 5.2.9

Improve work environment at the Border posts/ Checkpoints


Conduct gap analysis on the requirements of the Border posts/ Checkpoints Upgrade conditions at the Border posts/ Checkpoints

OBJECTIVE 5.3 IMPROVE ORGANISATIONAL EFFICIENCY AND EFFECTIVENESS Initiative 5.3.1

Review the organisational structure to improve efficiency and operational effectiveness

High Level Activities

70



5.3.1.1 5.3.1.2 5.3.1.3 5.3.1.4 5.3.1.5

Align organisational structure to meet best practice standards Review the existing structure to rectify gaps and overlaps

Define and document the functions for each Division, Department and Unit

Define and document the roles and responsibilities for each position Define and document the standardised policies, processes and procedures (SOPs) for the Departments and Units

Initiative 5.3.2

Develop and implement a Quality Assurance Management Strategy


Develop and implement a Quality Assurance Management policy Enforce internal control mechanisms

Initiative 5.3.3

Establish a Quality Management System in line with ISO standards


Determine ISO standards to be adopted Determine the structures and systems required for ISO certification Liaise with external accrediting Agencies on implementation of the selected standards Develop an implementation plan Commence the process for certification

OBJECTIVE 5.4 DEVELOP AND IMPLEMENT A BUSINESS CONTINUITY STRATEGY Initiative 5.4.1 5.4.1.1 5.4.1.2 5.4.1.3

Determine the level of risk Develop recovery procedures

Communicate procedures to staff

Initiative 5.4.2 5.4.2.1 5.4.2.2 5.4.2.3 5.4.2.4

Develop a comprehensive Disaster Recovery Plan

Implement a comprehensive Records Management System

Develop a Records Management Policy and Classification system Pilot the new Classification system Roll out the Classification system

Deploy an electronic Records Management System

Initiative 5.4.3 5.4.3.1 5.4.3.2

71

Enhance Employee Well-being Programme within GRA

Develop the Employee Well-being programme Implement the Employee Well-being programme

OBJECTIVE 5.5

STRENGTHEN MANAGEMENT CONTROLS THAT WILL ENSURE GOOD GOVERNANCE, INTEGRITY AND ACCOUNTABILITY Initiative 5.5.1

Improve governance and integrity


Conduct integrity diagnostic study Develop and implement a GRA Integrity strategy

Streamline GRA governance arrangements and policies in line with the strategy Sensitise staff on the Integrity Strategy

OBJECTIVE 5.6 AUTOMATE SUPPORT SERVICES FUNCTIONS Initiative 5.6.1 5.6.1.1 5.6.1.2 5.6.1.3

Adopt integrated solutions for HR and Payroll

Develop a functional requirements document Customise integrated system Train staff and pilot integrated system

Initiative 5.6.2

Adopt integrated solutions for Finance, Procurement and Stores

5.6.2.1 5.6.2.2

Develop functional and system specifications for the integrated system Test and deploy integrated system

5.6.3.1 5.6.3.2

Develop and implement comprehensive transport policy Develop and implement transport training program for drivers

Initiative 5.6.3 5.6.3.3

Develop a Transport Management System

Develop distribute transport manuals to staff

72



Initiative 5.6.4 5.6.4.1 5.6.4.2 5.6.4.3

Develop Case Management functional requirements Design system and acquire appropriate software Prepare user manuals and deploy system

Initiative 5.6.5 5.6.5.1 5.6.5.2 5.6.5.3

5.6.6.3

Automate the GRA Stores & Inventory Control function

Develop functional requirements for the Inventory Control function Design system and acquire appropriate software Prepare user manuals and deploy system

Initiative 5.6.6 5.6.6.1 5.6.6.2

Adopt a Case Management System for Internal Affairs

Automate the GRA Fleet Management function

Develop functional requirements for the Fleet Management function Design system and acquire appropriate software Prepare user manuals and deploy system

OBJECTIVE 5.7 INSTITUTIONALISE CHANGE MANAGEMENT WITHIN GRA Initiative 5.7.1

Review Change Management Strategy


Implement the changes in Change Management Strategy Conduct Change Management sessions for staff Build the capacity of the Change Management team

Initiative 5.7.2

Establish a Monitoring and Evaluation mechanism for the GRA Strategic Plan


Strengthen the monitoring and evaluation governance structure Build capacity of Monitoring and Evaluation Unit Review the Strategic Plan

Initiative 5.7.3

Institutionalise Strategic Planning and Programme Delivery


Sensitise staff and distribute copies of the 2015 – 2017 Strategic Plan

5.7.3.2 5.7.3.3

Develop project management manual for staff Build capacity of staff in project management

Initiative 5.7.4

Enhance internal Client Care Programmes


Institute team building programmes Institute continuous in-service training on client care for all staff Develop orientation courses for new staff on client care delivery

73

74



75

5.1 Introduction

The National Development Policy Framework guides Ministries, Departments and Agencies in the development of their Monitoring and Evaluation Plans. This ensures that the policy framework is effectively linked to the Budget and implemented in accordance with Sections 1, 10 and 11 of the National Development Planning (System) Act 1994, (Act 480). Monitoring and evaluation of this Strategic Plan will be undertaken in line with the guidelines in the National Framework. Monitoring and evaluation is geared towards identifying and measuring the gains made from specific instituted programmes and projects. The tools that will be used for monitoring and evaluation are annual Operational Plans, strategic measures that measure performance of the Strategic Objectives and the Performance Indicators that measure the nature and scope of operations, effectiveness of operations and efficiency of operations.

Part

5:

MONITORING, EVALUATION AND REPORTING

A Monitoring and Evaluation application will be used for capturing and analysing data on the progress of implementation. This will be the single system for reporting the implementation status of the Plan.

5.2 For this Point Headline / copy missing??? Its mentions in the content, but there is no copy in the original manuscript

Enhance GRA Corporate Image Enhance the level of tax knowledge of stakeholders Leverage technology to enhance service delivery

2.2 2.3

2.4

Improve client service delivery

STRATEGIC OBJECTIVES

OBJECTIVE CODE 2.1

Comply with ECOWAS Common External Tariff

1.6

Strengthen access to third party information

1.5

Efficient use of administrative resources

1.4

Minimise revenue leakage

1.3

Maximize tax revenue

Widen the tax net

1.2

1.1


OBJECTIVE CODE

Computerized/ automated business processes

Client knowledge of tax compliance

Improvement in corporate image

Client satisfaction

STRATEGIC MEASURES

Increase in capacity

Number of Agencies with which GRA exchanges routine reports

Administrative Cost of collection

Growth in revenue

Growth in revenue

Number of registered tax payers

STRATEGIC MEASURES

Monthly Performance reports

B). Revenue performance report

A). Revenue performance report

List of Registered Taxpayers (Master List)

MEANS OF VERIFICATION

Level of implementation of automation

B). Rate of late and non-payments

A). Rate of errors on Returns filed

Level of perception (%)

Level of satisfaction

PERFORMANCE INDICATORS

Number of officers trained

Level of collaboration

Status report on development of modules

B). Report on payments

A). Report on Return Filing errors

Client survey

Client survey


Monthly Training Reports

Monthly Performance reports

Administrative Cost Revenue and of collection to Total expenditure Revenue ratio reports

% growth in tax revenue

B). % growth in tax revenue

A). Tax Revenue to GDP Ratio (non-oil, nominal)

No. of new taxpayers registered to Total No. of taxpayers ratio


B). Nil

A). Website in place

68.82% level of stakeholder knowledge based on 2014 Client survey

63.22% satisfaction based on 2014 Client survey

63.41% satisfaction based on 2014 Client survey

BASELINE YEAR 2014

Baseline of ECOWAS CET - Nil

50 agencies

2.87 % of Total Revenue

27.8% average growth for 2010 - 2014

B). 27.8% average growth for 2010 - 2014

5% increase in the number of taxpayers per year

TARGET

C). 10% increase per annum of taxpayers using only e-filing and e-registration

B). Intranet in place and running

A). Website upgraded

Reduction in errors on Returns filed by 5% by 2017

5% increase in respondents satisfaction by 2017

5% increase in Client Satisfaction by 2017

TARGET

2000 Officers trained on Common External Tariff

2% increase per annum in number of agencies that GRA exchanges routine information

2.2% of total revenue by 2017

80% growth in nominal tax revenue by 2017

B). 80% growth in nominal tax revenue by 2017

A). 16.1 % of GDP A). Tax Revenue nonOil GDP growth rate of 0.7 percentage points per annum

BASELINE YEAR 2014


2.0

GOAL 2 RESPONSIVE CLIENT SERVICES

REF STRATEGIC GOAL

1.0

GOAL 1 OPTIMAL REVENUE COLLECTION IN A COST EFFECTIVE MANNER

REF STRATEGIC GOAL

76 GRA 2nd Strategic Plan 2015 - 2017

77

4.0

GOAL 4TRANSPARENT ENVIRONMENT TO ENHANCE VOLUNTARY TAX COMPLIANCE

REF STRATEGIC GOAL

3.0

Adopt National Single Window concept

3.5

Improve ease of doing business with GRA Automate and integrate operational systems

4.3

Develop and implement a Compliance Management Strategy


4.2

4.1

OBJECTIVE CODE

Improve on staff awareness and implementation of Regional and International Agreements, Treaties and Conventions

Identify Regional and International Agreements, Treaties and Conventions appropriate for Ghana for adoption

3.3

Enhance Preventive Operations

Improve Trade Facilitation and Investment

3.2

3.1


OBJECTIVE CODE

GOAL 3COMPLIANCE WITH STATUTORY NONREVENUE 3.4 OBLIGATIONS

REF STRATEGIC GOAL

Level of tripsTM implementation

Proportion of taxpayers filing on due date to total number of registered taxpayers tripsTM implementation

Return Filing compliance by tax type

B). Taxes paid voluntarily to total taxes payable ratio

A). Number of filing on due-dates to total number of registered taxpayers ratio


Level of implementation

Level of awareness (%)

Register of Agreements, treaties and conventions made available

Total no. of arrests or seizures to total no. of clearance

No of days/ hours of clearance


B). Payment compliance by tax type

A). Return Filing compliance by tax type

STRATEGIC MEASURES

Completion of Single Window platform

Staff awareness

Register of Agreements, treaties and conventions

Arrests or Seizures

Clearance time

STRATEGIC MEASURES

12 out of 67 Offices deployed

BASELINE YEAR 2014

Nil

Nil

112

Air cargo – 24 hrs. Sea cargo – 72 hrs

BASELINE YEAR 2014

Total deployment of all modules of tripsTM by 2017

4% increase in rate of Returns filing on due date

B). 4% increase in rate of payments per annum

A). 4% increase in rate of Returns filing per annum

TARGET

50% of single Window platform developed

50% increase in staff awareness levels by 2017

Document all Agreements, Treaties and Conventions

8% decrease in arrests and seizures per annum

Average Clearance time to be reduced by 8% by 2017

TARGET


tripsTM Status report

Monthly reports

B). Revenue and Returns filing reports

A). Revenue and Returns filing reports


Status report

Staff survey report

Register of Agreements ,treaties and conventions

Arrests or Seizures reports

Time-release study



79

Automate Support Services functions

5.6

Institutionalize Change Management within GRA

Strengthen Management controls that will ensure good governance, integrity and accountability

5.5

5.7


OBJECTIVE CODE

Develop and implement a Business continuity strategy

Improve organizational efficiency and effectiveness

5.3

5.4

Provide an enabling environment for the effective management of human resources

Strengthen training capacity in GRA

5.2

5.1


OBJECTIVE CODE

B). Implementation of Monitoring and Evaluation structure

A). Acceptance of change

Completion of Support Services systems

B). Completion of Customs Code of Instruction

A). Implementation of quality assurance management strategy

Implementation of a records management system

Implementation of disaster recovery

STRATEGIC MEASURES

B). Implementation of Business Continuity Strategy

A). Implementation of the reviewed organizational structure

B). Implementation of HR Strategies

A). Completion of physical infrastructure

B). Number of training hours per Officer per year

A). Number of Officers trained

STRATEGIC MEASURES

B). Level of implementation

A). Level of acceptance

Level of completion

B). Level of completion





A). Level of implementation


A). Level of completion

Number of Officers trained


B). Status report

A). Employee survey

Status report

B). Status report

Status report

Status report


B). Status report

A). Status report

B). Status report

A). Status report

Status report


B). 30% completion

Nil

BCP Strategy document completed

BASELINE YEAR 2014

B). BCP Strategy document completed

A). Existing organizational structure

BASELINE YEAR 2014

B). Establishment of M & E structure by end of 2015

A). Change Management programmes to cover 33% of staff per annum

80% of Support Services systems deployed

B). Customs Code of Instruction Completed by 2015

A). Quality assurance management strategy implemented by 2016

100% implementation by end of 2017

100% implementation by end of 2017

TARGET

C). 100% implementation by end of 2017

B). 70% automation of SSD

A). 100% implementation by end of 2015

B). Publication of Training Calendar by beginning of the year

A). Expansion of training infrastructure space (m2) by 5% per annum

10% increase in number of Officers trained per year

TARGET


5.0

GOAL 5 A PROFESSIONAL AND CREDIBLE ORGANISATION

REF STRATEGIC GOAL

5.0

GOAL 5 A PROFESSIONAL AND CREDIBLE ORGANISATION

REF STRATEGIC GOAL


81

83



6.1 Introduction

Governance helps to steer programmes towards successful delivery through establishing effective Programme Management structures. Management maintains control by using the structure to monitor and direct progress, identify and reduce risks and respond to changes. An overview of the Governance Structure is shown in Figure 7 overleaf and consists of the following: • Public Financial Management (PFM) Steering Committee • GRA Board • GRA Management Steering Committee • GRA Implementation Committees • Project Management Committees

Part

6:

Figure 7: GRA Programme Governance Structure

Public Financial Management (PFM) Steering Committee

GOVERNANCE STRUCTURE OFFICE

GRA Board GRA Management Steering Committee

PROGRAMM MODERNISATION

82

DTRD Projects Implementation Committee

Project Teams

Customs Projects Implementation Committee

Project Teams

Support Services Projects Implementation Committee

Project Teams

Corporate Projects Implementation Committee

Project Teams

84


6.1.1 PFM Steering Committee

The PFM Steering Committee has the responsibility of providing sponsorship and general strategic direction to the GRA and GIFMIS modernisation programmes. It is chaired by the Deputy Minister of Finance, with its membership drawn from both Government Agencies and the private sector to ensure that the interests of all stakeholders are taken into account.

6.1.2 GRA Board

The GRA Board provides strategic direction for the Plan. The varied expertise of members is brought to bear in providing this direction.

6.1.3 GRA Management Steering Committee

This Committee is chaired by the Commissioner-General and is responsible for the implementation of the Plan. Specific responsibilities are to provide policy guidance for the implementation of all the projects within the Modernisation Plan, prioritise initiatives and make recommendations to the Board for resource allocation.

6.1.4 Project Implementation Committee

The Project Implementation Committee is responsible for management and execution of projects. They comprise the Project Owners and Project Managers and would be expected to produce the Project Documentation.

6.1.5 Project Teams

Project Teams headed by the Project Managers are responsible for the day-to-day delivery of the projects. The role of the Team is to plan, budget and implement the activities of the project they are working on according to agreed specifications and deadlines. They are to document and ensure successful completion of the projects.

6.2 Governance Structure

The Governance Structure adopted by the Authority follows standard practices on governance whilst aligned closely to existing operational structures. The adopted structure has proven to be more practical for multiple projects and allows the projects to be better aligned with operational activities.


85

86

87



7.1 Introduction

An effective change management strategy hinges on a comprehensive communication programme. A regular and effective communications programme minimises uncertainty, anxiety and any adverse effects on the operations of the Authority.

A well-communicated change management strategy will sustain the benefits of the transformation, gain commitment for the change and support the process of delivering the Strategic Plan. Change management revolves around a myriad of factors. The factors include a good change network, a communications programme, training and performance support backed by well-defined procedures and guidelines. The following diagram illustrates the synergies between these factors.

Part

7:

CHANGE MANAGEMENT AND COMMUNICATION

Figure 8: Change Management Interaction Model • All Hands Meeting • E-Mail • Briefings • Website • List Service • FAQs • Fact Sheets Communications

Change Network

• Peers • Team Leaders • Change Agents

Training & Performance Support

• Instructor-led (Classroom) • Instructor-led (Virtual) • Web-Based • Specialised Training

Other Support • Manuals • Procedures • Swat-Teams • Expert Coaching

88



7.2 Change Management

Change management is an essential component of successful reforms. In order for the Authority to achieve the strategic goals and deliver the related benefits, stakeholders need to be ready, willing and able to adopt new behaviours and work practices. An effective change management strategy guides and supports stakeholders through the process of change. This ensures that the necessary commitment is built towards the new ways of working.

The Change Management Approach adopted by the Authority incorporated a series of activities designed to define change challenges, develop initiatives to manage these change challenges and put in place mechanisms to monitor effectiveness. The Authority has put in place a system of Change Agents and Change Champions in all offices to share information, solicit support and participate in various initiatives. A key element of the Change Management Approach has been to build commitment towards attaining the strategic outcomes of the Plan. A review of the current Change Management Strategy will incorporate appropriate interventions that will foster the right attitudes, leadership and a new sense of identity. The Change Commitment Curve below graphically depicts the emotional response stages most stakeholders go through during the life cycle of an intervention to enable them successfully embrace the change or new capability. ▼

Change Agents

All Staff

▼ ▼ ▼ Awareness Stakeholders know that changes is imminent. They do know yet what will be the benefits coming from the change.

▼

Commitment

Acceptance Time

Understanding

▼

Commitment to change

Sponsors

Stakeholders can explains the impact of the change on them and on their organisation.

Stakeholders have a positive attitude toward the change and what will personally affect them. They are prepared and willing to give a try.

Stakeholders will champion the changes associated with the change to their peers and will do everything in their power to make it work and deliver the expected benefits in their organisation.

Figure 9: The Change Commitment Curve Organisational culture encapsulates what the organisation stands for and how things are done. A review of the current Change Management Strategy will incorporate appropriate interventions that will foster leadership, the right attitudes and a new sense of identity.

89

7.3 Communication

Reform processes succeed if there is buy-in from all stakeholders. The implementation of an effective communications programme will ensure that anticipated changes are clearly communicated to all stakeholders. The Authority will utilise multiple channels and various media platforms to engage stakeholders in an effort to reinforce new operating models and expected behaviours.

Meet-the-Press series, staff durbars, newsletters and the continued use of stakeholder engagement will be leveraged to share information, help prepare individuals for planned changes, create understanding about new operating model concepts and build acceptance and ownership among stakeholders. The consistent messages, the constant interactions and the commitment of stakeholders will increase collaboration and cooperation in making the needed changes across the Authority.

90



91

The Ghana Revenue Authority’s 2nd Strategic Plan will continue to prioritise programmes and initiatives that will strengthen the tax administration system and improve revenue mobilisation. Specific expected benefits include:

Additional revenue for development

Part

8:

EXPECTED BENEFITS

Highly motivated staff who exhibit professionalism

Enhanced public confidence in the Authority

Improved ease of doing business

Improved international image for trade



TABLE OF CONTENTS - GRA

Recommend Documents