Professor Abdallah Ali-Nakyea, a tax expert and Associate Professor at the University of Ghana School of Law, has drawn attention to the controversial issue of religious leaders receiving lavish gifts that often go untaxed and unaccounted for.

Speaking at an anti-corruption forum organised by the Media Foundation for West Africa (MFWA) on Thursday, June 26, at the Alisa Hotel, Professor Ali-Nakyea urged greater examination of the sources and tax implications of these gifts.

The event, titled “Hidden Riches, Hollow Laws: Dissecting the Loopholes That Fuel Corruption and Illicit Financial Flows,” sought to expose less visible areas contributing to corruption in Ghana.

Addressing an audience that included religious leaders, Professor Ali-Nakyea posed critical questions about the transparency of such gifts.

He described a common scenario: a pastor appearing well-dressed and driving an expensive car, justified by claims of receiving such gifts as tokens of gratitude from congregants.

He challenged this narrative by asking: “Have you paid gift tax? Have you investigated where the money came from? What if it turns out the donor acquired the funds illicitly?”

His comments highlighted a significant gap in financial oversight. While Ghana’s tax laws, such as the Income Tax Act, 2015 (Act 896), cover income taxation, the rules surrounding the taxation of gifts—especially large donations to individuals or religious bodies—remain unclear and often unenforced. This loophole allows many such transactions to evade scrutiny.

Professor Ali-Nakyea linked these unregulated gifts to the broader problem of illicit financial flows (IFFs), a challenge that costs Africa an estimated $50 billion to $80 billion annually, according to Global Financial Integrity.

Beyond tax concerns, he emphasized the need for religious communities themselves to exercise vigilance. “When we receive offerings, we must be careful and demand accountability,” he stressed.

Religious institutions in Ghana, which play a major role in society—given that over 70% of the population identifies as Christian—are called upon to promote financial transparency and integrity within their ranks.

Reflecting on Ghana’s persistent battle against corruption, Professor Ali-Nakyea noted, “Despite past efforts and punishments, corruption remains rampant, likely even more entrenched today.”