Abstract:
This paper explores the opportunity for Tax Administration in Ghana to widen the tax net via taxation of
other sources of income, including incomes accruing to Churches. Evolution of Taxation of Religious bodies
and Charitable Faith based Organisations in Ghana, Constitutional perspectives of taxation of Religious
bodies, Functions of Churches, Tax Exempt Provisions, and Tax decided cases were discussed. It was
observed that limited companies registered by guarantee commit an offence, when they engage in profit
making ventures, and shall be liable to a fine not exceeding five pounds for every day during which it shall
carry on such business. It also came to light that some churches were engaged in income generating
activities such as transportation, church farm, bookshops or guest houses, private Universities, money
transfers, consultation fees, sale of olive oil, water from the well, lemon, porridge, oranges, handkerchiefs,
stickers, Anti-Witchcraft Pomade (“Abiyifoo Nku”),commission on lotto winnings, and microfinance
companies which does not fall under the tax exempt clauses as stipulated in the Income Tax Act 2015, Act
896.The study therefore recommended for the Taxation of the Business and Investment Income of Religious
and Faith based organisations, strict application and enforcement of the Tax law by the Commissioner of
Ghana Revenue Authority, and filing of returns by religious bodies.
