The University of Ghana is asking the Ghana Revenue Authority (GRA) for a grace period of three years to be able to pay ¢4 million in taxes on rent allowance for staff that was not paid in 2015.

The 2017 Auditor General's report observed tax on rent allowance was not deducted and paid in contravention of the tax laws.

Appearing before Parliament's Public Accounts Committee Thursday, the university officials pleaded for more time to recover the amounts.

“We are in talk with GRA to resolve the issue and indeed we have made some payment and we need to negotiate with GRA to have a payment plan and by the next three years we should be able to have it fully paid,” he said.

The Chairman of PAC James Klutse Avedzi who interrogated university officials said, "Any income received by the university is taxable; either from your employment or business investments.

"They are receiving this by virtue of being in the employment of the university. You don't pay these allowance to anybody, but to people who work for you."

The Vice Chancellor Prof Ebenezer Oduro Owusu, who led a team from officials from the University said a new form of accommodation policy is in place.

This he said enable the university to now withhold taxes on all allowances and remitted same to the GRA.

"We are ensuring that our staff members pay rates that are commensurate with others outside campus.

"In the new regime, we pay their allowances to them and they pay for rent and utilities," he said.