by Petamber Persaud

Taxes by Peter Fraser (a book review)

The book, ‘Taxes’, by Peter Fraser is an eye-opener to the uninitiated, a prompt to those conversant with the subject and a tax relief to those that find the subject perplexing.As an eye-opener, the book states the premise that ‘[w]hen tax rates increase, so does the incentive to evade the taxes, when the rates are high, the cost of honesty also becomes high and many taxpayers who, under lower tax burdens would have been honest with their tax matters, may be inclined to evade taxes…’ That’s just one example; there are many more.
As a prompt, the book declares that ‘the state in never a neutral agent in economic life’ for the ‘huge volume of expenditure enables the State to exercise a great influence on the economy of the country, since recently, taxes are no longer paid merely to cover the unavoidable cost of services provided by the State, but it has become an important instrument of economic policy’. There are many other examples.
As a tax relief, the book shows the importance and benefits of paying taxes. For instance, Fraser tabulated five theories of taxation, namely the ‘Benefit Theory’, the ‘Sumptuary Theory’, the ‘Social Theory’, the Faculty Theory’ and the ‘Compensatory Theory’, all bring elucidation to the issue of paying taxes.
This volume is designed to be user friendly. It is divided into three parts that are further subdivided into chapters which, step by step, bring elucidation on particular subjects. Those headings are self-explanatory, acting both as introduction and summary of particular subjects and as such a verbatim reproduction is in order.
Part one, titled ‘Brief Review to the Introduction of Taxes in Guyana 1929-1998’, deals with the introduction of taxation in Guyana via organizational structure of the unit, its decentralization, its relocation, change of title, and appointments of Guyanese Commissioners.
This first part also gives a history of taxation, income tax in the context of Guyana, theories and canons of taxation relevant to Guyana where it is stated that taxation started as a money-raising mechanism, a regulator of the country’s economy and as an instrument for redistribution of the national income. Obviously during the focal period of examination, there were many changes, revisions, amendments. Fittingly closing out part one is an examination of the efficiency of the Inland Revenue Department.
Part two, titled ‘tax reform and structural changes, a new perspective to the informal economy in Guyana, 2002-2012’, deals with the definition of the informal economy in Guyana and other countries, the difficulties in measuring something that is making a huge impact on the country’s economy mainly because all transactions are done in cash. But there is hope, since more focus is been placed on this ‘phenomenon’ by economists. Part two also deals with the role of lending agencies and their influences on the local economy. Both lending agencies and the informal economy have significant impact on the country’s economy.
Part three, titled ‘Inter-Agencies fight against drug use and abuse in the Caribbean region’, defines drug use and drug abuse, states the differences between addiction and dependence. This section offers some solutions in ‘preventative education and public information programmes’ and ‘early intervention, treatment and rehabilitation programmes’.
This book came out of a burning desire of the author wanting to share information on the subject in order to shape a better Guyana. This book is also the outcome of over twenty years experience in the field by the author who served in various capacities including Inspector of Taxes in the field audit section, secretary to the Board of Review, Public Relations Officer and Assistant Commissioner-Regional Debt Management of the Inland Revenue Department.
The word ‘tax’ is still being treated as a perplexing subject, sometimes bordering on the taboo and falling into the category of four letter words. This could be all round taxing – on the authorities who are informed and in the act of carrying out their mandate, on the beneficiaries/taxpayers who are less informed and can’t reconcile a situation of paying tax and on the tax evaders who are insensitive that they are biting the hands that feed them. But this book, ‘Taxes’, by Peter Fraser, comes like a welcome tax-relief, filling a lacuna.
However, all this good work is slightly marred by poorly laid out inter-textual references and citations where authorship of some concepts is seemingly blurred.

Responses to this author telephone (592) 226-0065 or email: oraltradition2002@yahoo.com

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