You have received an official email from your boss which reads: Hello, At a seminar organized by ICAG on Taxation in Ghana, the guest speaker stated emphatically that, Ghana Revenue Authority imposes taxes on both poor and rich resident individuals as a source of revenue for government. He stressed that one of the reasons why Government imposes tax is Equitable Redistribution of Income and wealth. In fact I did not understand what he said, the only thing I could recall is the information below that he used in his explanation.

Category Tax collected for 2018 fiscal year

Resident Individual GH

Poor 246,000

Rich 1, 262,000

Please I need you to explain this to me again. Thank you

Required:

With the aid of the information above, explain to your boss, Equitable Redistribution of Income and wealth in this context.

Instruction:

All explainations and justifications to answers should be based on the Income Tax Act 2015 (Act 896), Revenue Administrative Act 2016 (915), the Value Added Tax Act, 2013 (Act 870), Income Tax (Amendment) Act, 2019 (Act 1007), Value Added Tax (Amendment) Act, 2019 (Act 1005), Free Zones Act, 1995, (Act 504) as well as other relevant tax laws in Ghana if applicable.