Commissioner-General of the Guyana Revenue Authority (GRA), Khurshid Sattaur says that the self employed category of taxpayers is the greatest area of concern for the GRA since they are the most delinquent. “They do not pay their fair share of taxes and are holding those who pay to ransom, and the taxes paid are far less than what they should be paying”, Mr. Sattaur commented.
While the 2009 tax collections results have shown an improvement in this area the self employed category needs to show greater level of compliance.
Internal revenue collections increased by 6.3 percent to $36.7 billion in 2009. Underlying this increase was a 24 percent increase in income tax payments by self-employed person and a 19.9 percent increase in corporation tax payments by public sector companies. Corporation tax payments by private sector companies and income tax under the Pay-As-You-Earn system increased moderately at 5 and 4.3 percent, respectively.
The Commissioner General said bringing the self employed into the tax net is a gradual process and they must remember that it is the bounded duty of every citizen to pay their taxes which are needed to provide basic services in the country such as security, infrastructure, education and health care.
GRA is sparing no efforts in bringing the full force of the law against these taxpayers since it is grossly unfair for the ordinary workers in the system to be made to pay Pay As You Earn (PAYE), and other taxes from their meager earnings from the day they start working while these high-earning taxpayers cheat their taxes.
Mr. Sattaur would like to commend the other categories of taxpayers such as, the employed and companies who are the major contributors to GRA revenue collection.
April 30 is the due date for the filing of all tax returns and Mr. Sattaur would like to remind self-employed persons that GRA has the ability to identify tax evaders, money launderers and drug traffickers.
The evidence of their activities through the ownership of significant assets such as expensive cars, houses, large bank accounts and extravagant living are worth mentioning, that is not to say that we at the GRA are not doing anything about what we know about some of them. GRA also knows about those who receive large amounts of interest on their bank accounts, since the notice of withholding tax by financial institutions is forwarded to the GRA. Information about property transfers is also available from the Deeds Registry.
The GRA is willing to meet with various self employed groups (professionals, farmers, small traders etc.) especially persons operating in the underground economy who have never even come within the purview of GRA and some larger businesses who still keep their accounts in a primitive manner.
It may be possible through these meetings to establish a consensus which will raise the level of expectation of the taxes to be collected from these persons. Once their ability to pay is determined by the GRA, the burden will quickly be shared equally leading to a more equitable and efficient tax system.