The University of Cape Coast School of Business has organized the second session of the e-seminar series on the topic Coronavirus Pandemic, Tax Relies and Financial Reporting Implications.

Dr. Abdalah Ali-Nakyea of Ali-Nakyea & Associates, Dr.Isaac Nyame of Ikerm and Associates and Dr, George Tackie, Head, Department of Accounting were the discussants.

The Dean of the UCC Business School , Prof. John Gatsi in his introductory comment explained that globally, fiscal and monetary reliefs have been granted, including tax reliefs, reduction in interest rates, moratorium in the payment of interest on outstanding loans and the cancellation of planned announcement and payment of dividends especially in the banking sector.

According to him, all these policy decisions and directives have implications for financial reporting stating that the coronavirus pandemic has broad implications for tax professionals, auditors and financial professionals (management of companies).

He explained that many companies have not been able to organize Annual General Meetings (AGMs ) which also has implications for the approval of strategic plans and budgets among others.

He said “AGMs are crucial in the fiscal and strategic life- cycle of companies. AGMs provide unique opportunities for shareholders to assess the performance of their companies and managements by evaluating the financial statements”.

He called for creativity and engagement by professional bodies in accounting, taxation, auditing, regulatory institutions and government to deal with emerging challenges.

According to him, innovation should lead the way to ensure that the golden role assigned to shareholders through AGMs to promote good corporate governance and to make strategic decisions to foster the going concern of businesses is not truncated due to the Coronavirus Pandemic.

Prof. Gatsi said “it was encouraging that CalBank Limited has announced its Virtual AGM will take place on 24th June, 2020”.

He pointed out that deadline for AGMs either through virtual or traditional approach should be concluded early so as to limit possible corporate governance abuses in the absence of an AGM”.

Tax expert Dr. Ali-Nakyea for his part explained the importance of the various tax reliefs granted and distinguished between tax waivers and tax exemptions.

He explained that the purpose of tax exemptions is to benefit the country in terms of job creation, technology transfers, export of products and services.

He called on government to conduct cost- benefit analysis of tax exemptions.

Dr. Tackie also explained that financial reporting is an important communication between the company and its stakeholders to reflect record keeping in a particular financial year.

He explained that during the pandemic the requirement for proper book keeping should be enhanced because stakeholders will depend on the statements for various decision making.

Dr.Nyame on his part, explained that it was necessary for the Ghana Revenue Authority to continue to collect tax revenue during the pandemic because expenditure burden on the state does not reduce because of the pandemic.