…over proposed part payment of tax deductions refund

By Lisa Hamilton
WORKERS of the Bauxite Company of Guyana Inc (BCGI) are livid after the company’s management issued a notice which stated that they will receive their outstanding payments and tax-free allowances, in parts.

This matter has been in the spotlight since 2016, when it was found out that the BCGI/ Russian Bauxite Company (RUSAL) workers were being requested to pay taxes on their overtime pay.

In November 2017, representatives of the company were asked to sign a tripartite Memorandum of Understanding (MoU) that would clear the way for the employees to be paid what was owed them since October, 2016.

However, from November to date, the workers of BCGI are yet to see the materialisation of these payments. The Guyana Revenue Authority (GRA) addressed the BCGI in a letter dated 30, November 2017, requesting a breakdown of incomes earned by workers of BCGI for years 2016 and 2017.

Within the letter, GRA Commissioner-General Godfrey Statia, stated that the bauxite company should provide the GRA with a schedule outlining employees’ salaries and other information separated by year.
“RUSAL says that the total amount for the 13 months is 173 million dollars. I have requested that they separate this amount between 2016 and 2017, and, at the same time, submit in scheduled form, the amount related to normal pay and overtime pay for each employee,” Statia stated in his letter. “This, they have not yet provided.”

The delay in presentation of this document has hindered the GRA from directly refunding BCGI’s workers the amount owed them for the period of 2016. “For 2016, since employees should have already filed their tax returns on or before April 30, 2017, GRA will arrange for expeditious refunds once the schedule is submitted by RUSAL for 2016.”
The commissioner-general also advised employees who have not yet filed their tax returns for 2016 to do so immediately, in order to facilitate processing of the refunds, as it is established procedure.

However, when it comes to refunds for the period of 2017, the GRA says that this responsibility lies squarely in the hands of the bauxite company. “For 2017, I have advised that they refund the employees, in full, the amount applicable to the overtime and deduct it against future payments beginning from December 1, 2017,” Statia said. “At the rate of payments, the amount for 2017 will be recouped by April 2018. This, in my opinion, should be refunded immediately by the company to the employees. I advised them that this is a cash-flow problem for them which they have to deal with.”

RUSAL’s Representative, Vladimir Permyakov, told the Guyana Chronicle that although the body deliberated with the GRA to receive refunds for the year 2017, they were unable to receive it due to existing tax laws. “We also asked GRA to kindly consider this option, to send money back to our company to redistribute all this money to our workers who worked overtime. But it was said that there is a law, the Income Tax Act, [so] it’s not possible,” Permyakov said.

RUSAL intends, instead, to utilise a scheme of month-by-month payment of money owed to workers, in addition to their salaries. “[We will do this by] setting off the amount of taxes applicable for overtime pay for 2017 against future pay, payable by BCGI on behalf of its workers. “Before Christmas, all our workers will receive December wages and other overtime tax for two months, November and December 2017.”
However, the BCGI workers have rejected the proposed terms by the BCGI. “Has anyone considered how this kind of refunding would affect individual persons?” the workers expressed in a message to the company.

“We don’t want our money in parts or pieces, period…As workers, we wish to have the full amount of money, since we’ve already earned it, as soon as possible, so that our families can have a memorable holiday.”

General Secretary of Guyana Bauxite and General Workers’ Union (GB&GWU), Lincoln Lewis, attested to the worker’s plight stating that it was a matter that had been ongoing for over a year and as such the workers are angry. Referring to the full payment of workers, Lewis said, “The BCGI must confirm to the agreement that they had.”

He then pointed to a dilemma that may very well increase the gravity of the situation. ”It is a benefit that can only be received if you are employed with the company. If, come next year, a worker is fired; he will not get this benefit that he has worked for,” the general-secretary highlighted.

Lewis then went on to state that there are persons who were fired in October 2016. “What they are doing is saying to workers that the benefit that is accrued to them will be paid by way of setting off next year from their payment in taxes. If you are not employed next year, then you will never get it.”

When the Guyana Chronicle asked the BCGI representative about its consideration of the concerns of the workers, Permyakov said they were doing their best. “I want to underline, to help you understand and readers understand, we’re doing our best to settle the debt. This money won’t disappear. All this money will come back into the purses of each worker who were [taxed] for overtime work,” the representative said.

He then spoke about the difficulties the organisation would face in refunding a lump sum of the monies owed as the workers have demanded. “With transmitting 173 million it means it’s more than 800,000 US dollars and we have no money to do so,”
“We’re not fitting and keeping in our purses 173 million dollars. Life teaches us to have realistic approaches. I also have some dreams but I cannot afford them,” Permyakov explained.

Speaking to the Income Tax Act, he then added, “I also don’t like many things in Guyana and in my country, but it is my position not to contradict existing laws, I have to obey [the laws].”

The BCGI workers, however, continue to make their concerns known to bodies of authority and a group of workers has recently spoken to President David Granger on bringing a resolution to the ongoing issue, during his visit to Hururu, Berbice River.