The UK and Ghana confirmed a deal to exchange tax documents on citizens automatically. This will help Ghana prevent tax evasion and raise cash for public services.
“This significant milestone will help Ghana prevent tax evasion and reclaim millions of pounds in lost tax revenue,” said Justin Greening, the UK International Development Secretary.
This deal helps Ghana join forces with HMRC (HM Revenue & Customs), the revenue collection department in the UK. The HMRC will help them get a tax system that will help fund education, health, and infrastructure and reduce aid dependence.
Under this deal, Ghana’s Revenue Authority (GRA) will receive tax information from HMRC on the holdings of Ghaninian taxpayers in the UK and vice versa.
Tax, online trading, and investments – Offshore Accounts
Some investors try to evade or, let’s say, “optimize” tax and privacy by using offshore brokerage accounts.
Offshore trading platforms are often misconstructed as something investors do to evade wealth and income from the tax office.
The truth is that offshore investing means taking advantage of investment opportunities outside the county you reside in.
Expats, for example, already have offshore bank accounts. Offshore investing only takes this a step further. Instead of holding money, you invest there.
Offshore does not mean you don’t have to pay taxes
Offshore investment can provide tax-efficient ways to invest, but that does not mean you don’t have to report income and taxes to your authorities. Like the deal that Ghana and United Kingdom signed, it is our view that more countries will sign deals in the future. It is your responsibility to disclose your income and investments to your tax authorities.
Investing in the UK through an offshore account if you reside in Ghana is entirely legal. All income or gains have to be reported in your country.