OPPOSITION frontbencher Anil Nandlall has posed a series of questions to Finance Minister, Winston Jordan regarding the tax settlement cases between the Guyana Revenue Authority (GRA), Demerara Distillers Limited (DDL) and other companies and individuals.The questions are down on the order paper for response by Jordan at the next sitting of the National Assembly. Nandlall, a former Attorney General, prefaced his questions by saying that “in the

interest of good, accountable and transparent governance and in light of certain public disclosures, I ask of the Minister of Finance, the Honourable Winston Jordan, the following questions.”

He firstly asked that Jordan explain what principles were employed by the GRA in the recent settlement of litigation involving DDL in respect to outstanding assessed Consumption Tax for the period 2000 – 2006.

Nandlall also wants the minister to provide the names and rank of the officers of the GRA and or the Ministry of Finance who authorised, negotiated and approved the aforesaid settlement. He further wants to know whether the settlements were approved by the Board of the GRA; how the settlement of a legal challenge to the assessment of Consumption Tax accumulated over the period 2001 – 2006 results in a write-off in Excise Tax for the period 2007-2015 and whether GRA refunds other manufacturers, who paid their Consumption Taxes as assessed by the body using the same formula which was used to calculate Demerara Distillers Limited’s Consumption Tax and Excise Tax liabilities.

Additionally, in another round of questions, Nandlall wants the names of taxpayers against whom there were court cases in respect to outstanding tax liabilities to the GRA and whose cases have been settled from 1st June, 2015, to date, and in each instance, provide the following: the terms and conditions of each settlement arrangement; the names and rank of the officers of the Guyana Revenue Authority (GRA) and or the Ministry of Finance who authorised, negotiated and approved the aforesaid settlement; and evidence that the aforesaid settlements were approved by the Board by the Guyana Revenue Authority (GRA).

Jordan at a May 23, 2016 press conference had said that GRA is constantly working out tax settlements with businesses. Dispelling criticism that the agreement with the DDL was a giveaway, Jordan said that the $1.5B Consumption and Excise Tax settlement between the GRA and DDL is not novice.

“No, settlements at GRA go on all the time…. Listen, they (GRA) didn’t wake up overnight and decide to settle,” he said. He made it clear that Government did not give up G$5B in exchange for G$1.5B.

Reiterating the point that the Revenue Authority is authorised to settle matters outside of the court, the Finance Minister said the matter has been before the High Court and the Court of Appeal for 14 years, and the GRA has been on the losing end. “14 years this matter has been going on for…. Every time GRA went to courts, they lost.” Minister Jordan thus stressed that GRA’s decision was a “sound” one.

DDL announced in April that it had reached an amicable settlement with the GRA to resolve a longstanding dispute over Consumption Tax owed to the state.

The agreement is intended to settle all claims by the GRA and liability by the entity for both Consumption and Excise taxes up to March 9, 2016 to the tune of $1.5B.

“This sum is payable over 12 months. DDL, in good faith, very recently effected payment of one hundred million dollars in compliance with the settlement terms,” a statement to the media said.

The issue began in 2002, and the company said settlement follows an extended legal battle between DDL and the GRA, arising out of the $5.3B Consumption Tax assessment levied against DDL in January 2009 by then Commissioner-General Khurshid Sattaur.

Opposition Leader Bharrat Jagdeo had contended that the tax deal recently struck between the two entities has set a precedent for similar requests to be made by other companies.

Jagdeo also described the tax settlement as scandalous, noting that it sends the wrong message to the business community “…that a company can unilaterally decide to stop paying taxes while other companies comply with the law; take the matter to court, and drag it out until a sympathetic Government comes to power, and (then) settle its debts to the State,” said Jagdeo.

“If one were to calculate interest on this sum at a rate of 10 per cent per annum using only the past 10 years, the liability would amount to $10.6B. The GRA assessment of $5.392B was based on a formula handed down by the court, but yet DDL refused to pay,” Jagdeo stated.

In 2002, DDL had raised a legal challenge against the GRA on the methodology adopted by the latter for the assessment of Consumption tax. In February 2005, the High Court found in favour of DDL. The GRA subsequently appealed that decision, and on July 31, 2008, the Guyana Court of Appeal unanimously dismissed GRA’s Appeal.

Following the dismissal of the appeal, the GRA commenced a new assessment in August 2008; and notwithstanding attempts by the parties at resolving the matter, on January 16, 2009, GRA issued a new claim in the crippling amount of G$5,392B.