A Tax and Regulatory Partner at Deloitte, Wisdom Kpano, has urged business to be proactive with the changing trends in the regulatory and tax landscape to attract investments and expand their operations.
He is also urging them to remain complaint to avoid punitive measures.
Speaking at the Deloitte UKGCC Quarterly Investor Series, Mr. Kpano said efficient planning of business including tax planning is very important. The webinar was titled “Unlocking Business Growth in Ghana: Navigating Regulatory Compliance and Tax Risks”.
“For me the first principle for efficiently planning your business, including tax planning, is to know what is required of you. As the saying goes, ignorance of the law is no excuse”.
“Together, we can build a stronger and more resilient business environment in Ghana, one that not only meets regulatory standards but also drives innovation and prosperity”, he added.
Presenting on the topic “Unlocking Business Growth in Ghana: Navigating Regulatory Compliance and Tax Risks”, Augustine Donkor, Manager, Tax and Regulatory, explained that navigating compliance and tax risks has become increasingly critical as innovations accelerate.
He emphasised that the most recurring regulatory concern relates to Foreign Exchange (FX) usage, specifically, who is legally permitted to use foreign currency for business transactions in Ghana, under what circumstances, and through which approved processes.
The presentation outlined three core areas pivotal to understanding Ghana’s FX regulatory landscape:
1. Ghana’s Foreign Exchange Regime
2. Foreign Exchange Requirements
3. Technology Transfer Agreements (TTAs)
At the heart of this regulatory framework is the Foreign Exchange Act, 2006 (Act 723), which remains the primary legislation governing all FX transactions in Ghana.
Under this Act, Mr. Donkor noted that the Bank of Ghana (BoG) holds exclusive authority over the licensing, regulation, and supervision of all foreign exchange dealings in the country.
This means that individuals and businesses seeking to transact in foreign currency – whether for trade, investment, or business facilitation, must operate strictly within the guidelines established by the the Central Bank. For entities such as forex bureaux, obtaining appropriate licensing is mandatory, and all FX activities must be conducted in accordance with the Act to avoid regulatory breaches.
He highlighted that as financial technology solutions increasingly facilitate cross-border payments, digital wallets, and international business services, understanding these regulatory requirements becomes even more crucial. “Failure to comply could expose companies to significant penalties, reputational damage, and operational disruptions”.
The webinar featured Dr. John Kwakye, Advisor to the Bank of Governor and Principal Finance Officer at the Ghana Investment Promotion Centre (GIPC), Paul Boye.