Banks sues GRA for over $28B

GUYANA’S tax regulatory body – the Guyana Revenue Authority (GRA) – is being sued for over $28B by indigenous beverage company Banks DIH for what the latter considers to be consumption taxes it overpaid. According to the court documents, the case was filed on December 16, 2016, and Banks DIH is claiming that it paid $12.8B in consumption taxes, but that $9.09B of that amount was overpaid. The payment of the total amount was made between 2001 and 2006.
However, the beverage company is contending that the more than $9B overpayment was made because of a mistake in law, based on a Court of Appeal judgment on July 31, 2008 in relation to a High Court motion brought by another beverage company – Demerara Distillers Limited (DDL) against GRA.
Last year, DDL reached an amicable settlement with GRA after a 14-year tax dispute. This settlement arose out of the Consumption Tax assessment levied against the company by then Commissioner-General of GRA, Khurshid Sattaur, in January 2009, in the sum of $5.3B. This was immediately challenged by DDL in the High Court.
And following negotiations between the two parties, it was agreed that DDL would pay, for both Consumption and Excise tax up to March 9, 2016, the sum of $1.5B.
Accordingly, Banks DIH is requesting the High Court to make a declaration that the company paid $12.8B in consumption taxes between 2001 and 2006 under the legal mistake, and that an overpayment of $9.09B was made for the same period when compared to DDL, which had only paid $3.7B.
The beverage company is hoping that the High Court, where it filed its case, will rule that the state, “will be unjustly enriched if it were to retain” the $9.09B. It is seeking too, a declaration that they are entitled to repayment of that amount and 10 percent interest, which would carry the total to more than $28B.
Banks DIH said through its order that its calculated demand takes into account the settlement figure of $1.5B, payable by DDL, under the terms of the consent order.
Meanwhile, Opposition Leader Bharrat Jagdeo at a Monday morning press conference made it known that from the inception of the settlement with DDL, he had argued that it would trigger other liabilities to the treasury. He said that what Banks DIH is claiming for is an amount only between 2001 to 2006. What this means, he added, is that the beverage company could come with another claim from 2006 to 2016, which could well be over $30B. The Opposition Leader contended that the DDL decision was not a well thought out one, and has now exposed the state coffers to about $80B a year in liabilities.

SHARE THIS ARTICLE :
Facebook
Twitter
WhatsApp

Leave a Comment

Your email address will not be published. Required fields are marked *

All our printed editions are available online
emblem3
Subscribe to the Guyana Chronicle.
Sign up to receive news and updates.
We respect your privacy.