…Statia says gov’t free to negotiate

THE Guyana Revenue Authority (GRA) on Thursday made it clear that it will be holding firm to taxation principles during its negotiation with the Guyana Telephone and Telegraph Company (GTT) and its parent company Atlantic Tele- Network (ATN) over the US$44M in taxes reportedly owed to the Authority.

The full liberalisation of Guyana’s telecommunications sector relies heavily on the negotiation between the sides and Commissioner General, Godfrey Statia made it clear that he will not allow politics to play a role. In fact, he told reporters that if he senses a political debate, he will immediately withdraw from the negotiations. “Taxation must be dealt with in a principled way; it must be above board and everyone could recognise and be treated the same way.”

While he could not give a timeline for the conclusion of negotiations, Statia said GTT has submitted requested information to the Authority and he is in the process of perusing same. He said too that he has requested additional information which the telephone company is yet to provide.

The dispute has been ongoing since 1991. “If you collect half of that 26 years ago, [you] would be in better stead than holding back those objections all along,” the GRA head stated. He reminded that the matter is in the courts and is likely to be deliberated upon in March. “If engaging the courts, there is a process that needs to be followed. And that process means you first have to approach the court and say we are in a negotiating mood…We have to respect the right of the tax payer, rights of the government and the court–notwithstanding all these negotiations.”

However, when asked whether the Authority is likely to consider giving up some of the US$44M owed to it to see the telecommunications liberalised, Statia said, “That is not a decision for me, I have said it before. I am bound by the law, by tax principles. If the tax principles said that we did not raise the assessment in accordance with the law and tax principles, I am prepared to reduce the assessment or amend it.”

When asked when would he be submitting his tabulated figure to government for a decision in this regard, Statia responded: “As long as I reach my figure as to what is due and payable to the revenue, that goes to the government whereby they could decide whether they are going to deduct it from any compensation or what is going to happen or these things,” the tax boss stated.

He emphasised that the buck does not stop with him, but noted that he intends to follow the law. “It is non-negotiable where taxes are concerned. Taxation is based on principles, so any assessment that would be reduced or maintained would be based on those principles that could actually stand up in a court of law,” he concluded. The telephone company in its 2016 reports has said that should it be found culpable with respect to the US$44M GRA says it owes, then government would be obligated to repay the company so as to ensure that its returns on investments from 1991 to present is not under 15 per cent annually.

Meanwhile, earlier this week, Public Telecommunications Minister, Catherine Hughes told reporters that the date for liberalisation, though previously set for mid-2017, has been a “moving target” due to tax negotiations between the GTT, ATN and the GRA. “I’m really happy to say that the negotiations to date have been conducted in an extremely cordial manner. If you recognize that GTT and ATN have had a monopoly situation that’s lasted over 20 years, then you can understand that from the perspective of both parties, they want to make sure that they’re coming to the table to get the best,” Hughes explained in regards to the delay.

Several international telecommunication companies have expressed interest in partnering with Guyana, even as efforts are made to fully liberalise the sector. Minister Hughes said her ministry has received approximately 20 proposals from both local and international companies, all eager to access information relative to the licence application process. The Telecommunication (Amendment) Bill was passed in July 2016.