AS the Guyana Revenue Authority (GRA) works to strengthen its tax-education efforts across the country, the revenue body is preparing a mining booklet which will apprise miners of applicable taxation and financial reporting measures.

This was disclosed on Tuesday afternoon, when GRA Commissioner-General, Godfrey Statia and executives of the Guyana Gold and Diamond Miners Association (GGDMA) met with dozens of miners at the latter’s North Road headquarters in the capital.
At the meeting, Statia heard a number of concerns from mostly small miners who noted that the new taxation measures, including a 20 percent tax on their individual incomes will place a burden on the sector. Statia provided assurances to the miners that their concerns would be addressed when he meets with the GGDMA overtime to address matters relevant to the sector, including taxes and probable compromises.

”I know for sure that there are many miners who would be filing {tax returns} losses “, he said. He noted that the two bodies will have to sit down and decide why insistence on the filing of tax returns is necessary.
“I know for sure the best way to begin is by starting to adhere with the laws from now going forward,” he added. He reiterated that the miners needed to ensure that their records are up to date. He said that the GRA is open to any suggestions from the GGDMA and by extension the miners, noting that the body is working to compile radio and television programmes, as well as help desks to disseminate information which would assist the miners.

He said that the booklet will be written in simple and concise language for all miners to understand, noting that forms and taxpayer identification number (TIN) requirements will be included in the publication. “When you turn up at GRA and there is no TIN , I don’t want what use to happen prior to when I was there , and they send you away because there is no TIN”, he added, noting that measures have been put in place to ensure everyone possesses a temporary TIN until their applications are processed.

Statia said that a number of measures have been put in place to assist miners, and these include tax return payments following audits. “A lot of audits ought to be done by sampling, we have not been doing sampling at all,” he said in that regard. He informed that such audits have been conducted on entities in the industry on a repeated basis. He said that in the future, this will be changed, in which random persons will be sampled. He also assured the miners that they would receive payments owed to them after filing their tax returns.

Regarding the taxation measures to be implemented, Statia was asked if a miner “strikes gold” , and he/she reinvests in equipment such as an excavator, whether the move would be considered as expenses for the operation, or as a growth in capital equipment. Statia said it would be the latter, and taxes will have to be paid. He said the miner will not receive the payment return at once, but over a period of time.
Regarding pay to workers and the 20 percent tax, the miners noted that the industry is configured in such a manner, that not all workers are permanent, since some would carry out specific “jobs” and then move on. Such persons are referred to as “tributers” in the industry.

Statia said that miners know the industry well and his knowledge of the sector is based on what he has gathered from the GGDMA and miners themselves. He said that the “tributer “will have to know his terms of employment prior to being given the job. Tributers work temporarily with mining operations and receive payment for specific jobs done with the mining operation.

The commissioner-general said that the GRA plans to work with the GGDMA in correcting any attempts by defaulters to evade the relevant taxes, a proposal which he said, “unfortunately nobody wants to be the watchdog, nobody wants to be the snitch ,” as the audience erupted in laughter. Statia reiterated that he wishes to simplify the information relevant to the mining sector to ensure that everyone understands the taxation and financial reporting measures which are relevant to them.

Several small miners at the meeting expressed concern that the taxes, mainly the 20% tax which employers will have to pay on behalf of employees with the new, amended regulations. Statia noted however, that he is operating within the ambit of his office and not as a politician.