Claim that Ghana’s Constitution prescribes jail term for tax evasion false

The leader of the New Force Movement, Nana Kwame Bediako, widely known as Freedom Jacob Caesar or Cheddar, has made claims suggesting that Ghana’s Constitution prescribes a two-year jail term or two-million Ghana cedis fine for politicians convicted of tax evasion.

Nana Kwame Bediako made this assertion in an interview on GHOne TV on Tuesday, 16th January 2024, while responding to a question about which aspects of the Constitution he would change if he became president.

The entrepreneur and presidential aspirant has been granting interviews on various media platforms to discuss his political ambitions and plans for the country.

“I could probably start by giving the average Ghanaian the opportunity to feel that being a politician is not a crime or something that will put you away,” he said. “When you read the constitution, it makes the average Ghanaian who is slightly wise and successful stay away. To enter into politics, if you have missed even one of your taxes, it’s likely you will go to prison for two years or pay a fine of two million.”

Fact-Check Ghana has verified his claim and presents the findings below.

Claim: “When you read the constitution, it makes the average Ghanaian who is slightly wise and successful stay away. To enter into politics, if you have missed even one of your taxes, it’s likely you will go to prison for two years or pay a fine of two million.”

Verdict: False

Explanation: The 1992 Constitution has clear stipulations on what one requires to be eligible to run for the office of the president or member of parliament.

Article 62 of the Constitution states that a person shall not be qualified for election as the President of Ghana unless (a) he is a citizen of Ghana by birth; (b) he has attained the age of forty years; and (c) he is a person who is otherwise qualified to be elected a Member of Parliament, except that the disqualifications set out in paragraphs (c), (d), and (e) of clause (2) of article 94 of this Constitution shall not be removed, in respect of any such person, by a presidential pardon or by the lapse of time as provided for in clause (5) of that article.

Article 94 clause (1) of the Constitution also states that a person shall not be qualified to be a member of Parliament unless (a) he is a citizen of Ghana, has attained the age of twenty-one years and is a registered voter; (b) he is resident in the constituency for which he stands as a candidate for election to Parliament or has resided there for a total period of not less than five years out of the ten years immediately preceding the election for which he stands, or he hails from that constituency; and (c) he has paid all his taxes or made arrangements satisfactory to the appropriate authority for the payment of his taxes.

Fact-Check Ghana found no provision in the 1992 Constitution stating that an individual seeking political office, who is in default of tax payments will be subjected to a two-year imprisonment or be made to pay a fine of two million Ghana cedis.

The team further consulted a lawyer who affirmed that he is unaware of any clause in the constitution that specifies imprisonment for tax evasion.

What does the law say?

Section 80 of the Revenue Administration Act 2016 states that a person who fails to pay tax by the date shall pay a fine ranging from a minimum of two hundred penalty units to a maximum of one thousand penalty units if the failure involves an amount exceeding two thousand currency points. Alternatively, the defaulter may face a term of imprisonment lasting between three months and one year, or a combination of both fine and imprisonment.

In any other case, the penalty consists of a fine ranging from a minimum of fifty penalty units to a maximum of two hundred penalty units.  Alternatively, the offender may be subjected to a term of imprisonment lasting between one month and three months, or a combination of both fine and imprisonment.

According to the Fines (Penalty Units) Act 2000 (Act 572), a penalty unit is GHS 12.00 and the monetary value for a currency point is GHS 1.

Thus, under the Revenue Administration Act 2016, the highest monetary punishment for failing to pay tax by the date is GHS 12,000, if the tax exceeds GHS 2,000. The highest jail term under the law is one year. This is inconsistent with Nana Kwame Bediako’s claim that one would likely face a two-year jail term or pay a two million cedis fine.

The provisions in the law on failure to pay tax by the date apply to every citizen. There’s no specific provision for individuals wanting to enter politics or serve as a public officer.

In conclusion, the claim by Nana Kwame Bediako that a person seeking political office, who is in default of tax payment, will be subjected to a two-year imprisonment or be made to pay a fine of two million Ghana cedis is false.

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