Commissioner-General of the Guyana Revenue Authority (GRA) Godfrey Statia has issued a stern warning to medium and large-scale miners to desist from tax evasion. Speaking with miners who operate within Region Seven on Saturday, Statia made it clear that small-scale miners do not pose as many problems for the Revenue Authority.
He explained that no one is exempt from paying taxes and submitting their returns to the tax office, noting that the GRA is not imposing an “unnecessary burden” on miners to keep records of each transaction done.
This, he said, is very important task.
“A particular group of people have been getting rich on the backs of small miners,” said Statia who emphasised that “everybody needs to pay their tax”.
He committed to working with the Guyana Geology and Mines Commission (GGMC) and the Ministry of Natural Resources to ensure that all categories of miners understand their obligations under law as it relates to payment of taxes to the GRA.
The Commissioner-General told the miners gathered that officers will be dispatched to all mining communities to ensure that miners no longer take advantage of the tax system.
“I want you to pay your rightful tax. Taxation is an investment in your country’s progress, we have grown accustom to everything being free; we have become lawless and it is time we put some semblance of order into the financial accounts.”
The GRA boss noted that many medium and large-scale miners whom he termed as “big miners” have complained about the need to keep records, but noted that at every meeting held with those miners, all were equipped with modern technological devices such as iPads.
VAST DISCREPANCIES
“They have iPad and can’t keep records… when you examine the information miners submit to the bank to get a loan versus what is submitted to me… there are vast discrepancies,” said Statia.
He disclosed that based on analyses done, 30 per cent of all gold that has been produced was not sold to the Guyana Gold Board and noted that with the introduction of new tax measures which includes an increase in tributors’ tax from 10 per cent to 20 per cent as well as the payment of two per cent tax, that problem would be curbed.
“This law is not structured to catch small miners,” he assured the packed Bartica’s Regional Democratic Council (RDC) office boardroom. Miners are also required to file their income tax returns in accordance with the law.
“Once you keep you records and you pay your two per cent and you file your returns and you show me that you should not have paid the two per cent, the Government is going to give you back your two per cent,” the Commissioner-General assured.
He told miners that there is no new imposition of a two per cent tax on miners as the law was introduced in the late 1980s. Statia explained that miners who over pay taxes will be refunded at the end of the year.
“… pay two per cent tax but keep records so that if we check we’d recognise how much you get from other sources of income. Why would you shift resources towards small miners- small miners once keep records and you pay two per cent and file returns, the Government is going to give you back your two per cent.”
Statia said too that tributors, persons who work for gold and diamond miners in the interior, have not been complying with the law and noted that once excess taxes are paid, the money paid would be refunded.
Tributors are liable to pay an income tax at a rate of 30 per cent; however, tax is deducted at a rate of 10 per cent by employers quarterly on the gross payment.
COMPLY
“We want the tributors to comply- they have not been complying at all…” Statia added, while noting that he has undertaken to examine the rationality of deducting the tributors’ tax. That examination, he said is 99 per cent complete.
He said there are three alternatives to the tributors’ tax: namely deciding whether an employee should be made a tributor or he should be paid as a self-employed person or contractor.
Meanwhile, Statia made it clear that GRA will soon begin a public awareness programme targeting members of the mining industry and noted that all miners must have a Tax Payer Identification Number (TIN).
He said too those who are compliant will benefit from concessions while those who are not will be allowed to enter into arrangements with GRA to have their taxes settled.
Meanwhile, Minister within the Ministry of Natural Resources Simona Broomes, who was also present at the meeting, told miners that the APNU+AFC Government is working towards a win-win situation for all.
She explained that in order for miners to benefit from concessions granted by the Government, they must be compliant.
A former miner, Broomes said while she understands the rigours of the industry, there is a great need for miners to keep documents and pay taxes.
She committed to having a desk placed at the GGMC to assist small miners to keep their records in order.
Miners who participated in the meeting expressed gratitude to both Minister Broomes and the GRA Commissioner-General for taking time from their busy schedules to explain their tax obligations and provide guidance.
Arthur Thorne, a member of the Parika Mora Small Miners Association, said the new tax measures could protect small miners and labourers against exploitation in the sector.
“When you have a good tax system they cannot deny you didn’t work with them. The tax is good for us,” he stated.