GAFSONS Industries Limited has filed an action against the Attorney General and the Guyana Revenue Authority (GRA) seeking three declarations, one Conservatory Order and an injunction against the Guyana Revenue Authority.

1. A declaration that the amounts of $581,583,952; $535,689,049; $481,611,601; $464,206,995; $426,542,297 being interest for years of income 2007, 2008, 2009, 2010, 2011 respectively are interest accrued to be paid by the plaintiff to Agencies Investments Limited (BAIL) under a trading account for the supply of goods to the Applicant.
2. A declaration that the plaintiff’s claim for ‘allowance’ of the aforesaid “Interest Expense” for the amounts for years of income 2007 – 2011 was disallowed by the Guyana Revenue Authority (GRA) as “being interest accrued on loans from BAIL” in accordance with Section 18 (h) of the Income Tax Act, Chapter 81:01 is arbitrary, irrational, unreasonable, unconstitutional, ultra vires, null and void and an uncompensated taking of the plaintiff’s property in contravention of Article 40, 142 and 149 of the Constitution.
3. A declaration that the method used by the Guyana Revenue Authority for calculating the amounts due by the plaintiff to GRA on the said BAIL transaction for the said periods as contained in their letters of December 30th, 2013 and July 25th, 2014, is arbitrary and unlawful.
4. A conservatory order under Articles 153 to preserve the status quo in respect of the amounts claimed to be due by the plaintiff to the Guyana Revenue Autority in their letters of December 30th, 2013 and July 25th, 2014, under the said BAIL transactions until the hearing and determination of whether the GRA’s conversion of the plaintiff’s trading account with BAIL into a loan account is lawful and what amounts if any is lawfully due to the GRA; alternatively.
5. An injunction restraining the second Respondent, its officers, agents or workmen or otherwise whomsoever, howsoever from taking any further steps or enforcing payment of the amounts unlawfully calculated by the GRA in their letters of December 30th, 2013 and July 25th, 2014, as payable by the Applicant until the hearing and determination of the question whether the method of calculation by the GRA is lawful.

The writ of summons was issued by Mr. Rex H. Mc Kay, S.C., Mr. Neil Boston, Mrs. Bettina Glasford and Mr. Brenden Glasford, Attorneys-at-law.
The matter is fixed for hearing before Acting Chief Justice Mr. Ian Chang, S. C., on Friday at 13:15 hrs.

(By George Barclay)