Dear Editor,

VALUE Added Tax (VAT) is a very important component of revenue collection in Guyana. It is vital to the economy, and the Government can use it to pay our public servants and fund state projects.There is an urgent need for Guyanese to be educated and informed on the value of paying their taxes, and the responsibility we all have to honour that commitment. It has been observed that many local businesses have two or three financial books; and in some instances, more than one cash register. They have, for many years, robbed this nation of much-needed funds through accounting malpractices. Many have shared the experience when they go to buy goods from some stores and producers and are asked, “vat or no vat?”

My response will always be to charge me the VAT, and this should be the attitude of all citizens.

Many businesses, inclusive of security services, have been blatantly involved in the theft of VAT. Further, the ones that practise this fraud are not afraid of being in the tendering system, as they feel protected. While others are completely avoiding payments, others pay a minimum of the VAT to the GRA, and defraud the state of a significant portion. Some are treating the remittance of VAT, Income Tax and PAYE deductions as if it is a donation or charitable contribution to the Government and nation.

Theft of VAT is a major criminal offence. In other countries, persons are jailed and given stiff charges. For example, the IRS in the United States and the Tax authority in Canada investigate and monitor effectively the criminals that avoid tax payments.

There is an urgent need for the law to be properly outlined, so that abusers can be found and properly prosecuted. Sadly, tax evasion is an unpatriotic reality in our nation, and I would strongly admonish all citizens to honour tax payments, as we all desire better police services, more efficient hospitals, more roads and highways, the best educators. This can greatly be achieved through equipping the Government with adequate revenue through VAT and Income Tax.

It is known that before elections a few years ago, a Security Service forged a GRA and an NIS compliance document and was never prosecuted. All that happened to that particular company was that it was refused any contracts, for the Regional Security Contract only, for that year. However, the following year, that company was somehow able to secure Government contracts in all ten administrative regions. Because of the theft of NIS and PAYE by this company, which claims a close relationship with Government officials, the owner would tender below cost as the NIS, PAYE and VAT theft would enrich him.

The same individual was arrested for the alleged theft of 100 laptops that were stored in his private residence. He was charged and the matter was highlighted locally and internationally. He boasted that nothing would come out of the case, and so said, so done.

Following the award the company received, the company’s leader boasted about being unprosecutable, and that he was a “party-man”. I strongly believe that people involved in such activities must be prosecuted by the law. They must not feel above the law, but subordinate to its authority.

Another security company never paid its NIS, VAT and PAYE taxes. It was made insolvent by the former Commissioner General. Mechanisms should be set to enable knowledge of the amount of money that is to be collected; and alongside that, the amount of money that has been paid; and importantly, that which is outstanding (as it relates to VAT). For example, if I have a contract for 100 security guards, the NIS must be properly accounted for and paid in full, and the NIS must know if I’m cheating the system, especially if it is a Government contract, each contract mentions the number of security personnel.

NIS/FINES
Companies are continuing to steal from their workers/citizens of this country in order to fatten and richen themselves. They have proverbially been drinking the blood of the working class, and have been robbing this country of resources it so desperately needs. It is my view that the NIS laws are far too weak and lenient. In many cases, these acts are not labelled as criminal offences. They must be made criminal offences! The law must bite! The law must sting!

It was just recently discovered that some of the largest rice farmers and millers in Essequibo never paid PAYE and NIS, creating a massive social and financial crisis in the country. Bankruptcies or ‘planned bankruptcies’ should never prevent the white collar criminal from remitting PAYE taxes and National Insurance, as they were collected from employees on behalf of the country and the NIS authority.

Further, a trade union was allowed to open a security service in order to privatize security guards of the Government, while receiving clearance to operate for seven years. This organization also never paid Income Tax and NIS, causing the state to lose billions of dollars. In the end the company went insolvent. I was told by someone very close to the previous Government that “next to God is a raise”.

The legal entities in Guyana must take note of such insanity. One way to ensure this happens is to have private criminal lawsuits levied, and not just the civil lawsuits. The National Insurance Scheme (NIS) would have previously published names of NIS evaders, but this is simply not enough. GRA should move to publish their photographs in the media, and expose these cases at length to the public.

There is a case of a company that is being operated by someone allegedly returned to Guyana by the U.S authorities. Workers had starkly complained and protested at the NIS office of that individual’s failure to cover them, but nothing was ever done. Later, he would mock such employees, asking them: “What have you achieved?” I call for companies who fail to pay NIS to be blacklisted for about 3-5 years by the Government and its various arms. This has to be made serious, so that we can give the ‘good life’ to all Guyanese.

Regards,
Roshan Khan