The President of the Ghana Football Association(GFA), Kwesi Nyantakyi, says the association does not owe the Internal Revenue Service any amount and is not in the position to pay taxes demanded by the service. The Daily Graphic reported on Tuesday July 13, that the IRS is claiming at least $349,000 from the earnings of the 23 players of the senior national team, the Black Stars, who participated in the just ended World Cup tournament in South Africa. The amount demanded by the IRS constitute 10 percent tax on the publicly known earnings of the players in respect of appearance fees, winning bonuses and the “thank you” package announced by President John Evans Atta Mills on their arrival back home. The Daily Graphic also reported that according to the Chief Inspector of Taxes at the IRS Ms Zenabu Yakubu, the IRS has already requested the Ministry of Youth and Sports, as the withholding tax institution for the service, to endeavor to make the tax deductions in respect to the earnings of the players within the stipulated period, failing which the ministry would suffer penalty. However in an interview with Citi News on Tuesday July 13, the GFA President, Kwesi Nyantakyi said he is shocked by the report since the GFA was not informed earlier of such arrangement. “I was surprised first of all that we didn’t have any prior notice of it. At least if players and officials are liable to taxation they should be served with an assessment for them to confirm or deny the assessment before any such definite determination can be made about it. Unfortunately it was not done”. The GFA President noted that the bonuses paid to the players were subject to taxation in South Africa therefore the IRS in Ghana has no basis to demand bonuses from the players and officials of the senior national football team. “The bonus is paid based on performance on the field of play and it is paid in South Africa and subject to taxation in South Africa. I believe that Ghana has a double taxation arrangement with South Africa so that taxes paid on amounts earned in South Africa are not subject to taxation again in Ghana and if that is upheld then there will be no point to tax their bonuses”. Mr Kwesi Nyantakyi also added that similar arrangements were made during the 2006 FIFA World Cup in Germany and the recent African Cup of Nations in Angola which allowed the players to pay their taxes in those countries rather than in Ghana. Source: Citifmonline.com/Ghana