The member of Parliament (MP) for Keta and former Minister of Trade and Industry, Mr. Dan Abodakpi, has thrown the gauntlet to the Internal Revenue Service (IRS) saying he owes them no gift tax.

He was speaking in an exclusive interview with the Daily Guide following recent media reports that the IRS had written to him demanding that he pays tax on a purported amount of ?100 million (one hundred million cedis) he allegedly received from an Iranian-Ghanaian businessman.

The money was allegedly paid as school fees for one of the former minister’s children who was studying at a University in the US. The Keta MP claimed that so far as he is concerned he owes the IRS nothing and challenged the tax-men to prove their case against him.

Speaking to this this from his Tema residence on telephone over the weekend Mr. Dan Abodakpi explained that after the IRS had raised the issue, he wrote letters to them explaining that he owes them nothing, but up till now he has not received any response from the tax officials.

Mr. Abodakpi intimated that he is sorely perplexed that the IRS has failed to react to his response.

Asked whether indeed his daughter Rejoice Abodakpi’s school fees abroad was paid by the Iranian-Ghanaian businessman, and a former Director of Kumasi Asante Kotoko Football Club, I. K Mourkazel, he declined to comment, saying that unless IRS replies to his letter he will not comment on the issue.

Pressed to comment whether he is ready to pay the tax if the IRS finally replies him, he replied, “My brother, I say I don’t want to comment.”

Section 592 of the Internal Revenue Act 2000 states that “Gift tax is recognised under the tax laws of the state.”

The Act makes it mandatory for one to pay gift tax. Under the law one is expected to pay tax on gift valued above ? 500,000.

“Subject to sub-section (2), a person who receives a taxable gift shall, within days of receipt, furnish the commissioner with a return in writing containing information including the description and location of taxable gift, the total value, of the gift and how it is calculated.”

It would be recalled that the IRS directed the Keta MP and former Minister of Trade and Industry, to pay to the state tax on a ?100 million being a gift which was converted into school fees for his daughter’s education abroad.

The IRS directive was as a result of an admission by Mr. Abodapki that the Iranian-Ghanaian businessman, I. K. Mourkazel, had paid his daughter’s school fees at the East London University in the United Kingdom where she obtained her first degree between 1996 and 1999 the and the 0&m University in Texas U.S.A where she proceeded to do her post-graduate course.

A Dr. Frederick Owusu Boadu mentioned in the Serlomey $ 1.2 million Courts Computerization transfer palaver, was a lecturer at the Texas 0&A University.

In the course of the Serlomey trial, at an Accra Fast Track High Court. Mr. Dan Abodakpi who testified on the USAID Trade and Investment Project (TIP) told the court that his friends were taking care of his daughter’s school fees at the Texas 0&m University. He however failed to tell how much was being paid toward his daughter’s education in the United States saying he did not know how much his daughter’s school fees cost.

The IRS took advantage of the Keta MP’s admission in open court during the trial of Victor Serlomey on July 12, 2001 that his friend Mourkazel had paid for the education of his daughter.

This revelation is said to have reached the ears of the tax-men and women at the IRS who therefore set-down to business to assess the tax obligations of Mr. Abodakpi regarding the ?100 million gift since according to the tax laws, gifts are also taxable to some extent.

Gift tax is charged on buildings of a permanent or temporary nature, land shares, bounds and other securities and money including foreign currency.

Taxable gifts are in respect of businesses and business assets, any means of transportation ( land, air sea), gifts and chattels and part of , or any interest in, to, over any of the assets.