Beiersdorf Gh. Ltd. imports and distributes Nivea skin care products from the parent company based in Germany, Beiersdorf AG). The tax authorities, CGRA, had issued an assessment where deductions for royalty payments to the German parent had been denied (non recognition – not legitimate business cost). Furthermore, alledged product discounts paid to third party vendors  had been characterized as sales commissions subject to withholding tax of 10%. Beiersdorf contended the assessment and filed an appeal. The appeal was based on three main grounds: The finding of CGRA that royalty payments made by the Appellant to Beiersdorf AG (BDF) pursuant to an agreement between Appellant and BDF for the use of the Nivea brand should not be allowed as a legitimate business cost because of the failure of the Appellant to comply with prior registration of the Royalty Agreement with the Ghana Investment Promotion Center is wrong in law. The finding of CGRA imposing liabilities with respect to withholding tax is wrong ... Read more