– GRA says company has over eight years of outstanding taxes

THE GUYANA Revenue Authority (GRA) will not be granting any amnesty to the Guyana Stores Limited (GSL) for outstanding balances owed the authority.
“There will be no amnesty for this particular tax payer. There would be none,” declared Commissioner General Godfrey Statia on Tuesday, as he reminded that the company has at least eight years of corporate tax returns outstanding for the authority.
Last month, the Caribbean Court of Justice (CCJ) dismissed an appeal by GSL to have among other things, the court rule that the GRA and the State violated its constitutional right to the protection of property. GRA had demanded that Guyana Stores pay to it some $3, 811, 346, 397 for the years of assessment 1985 – 2010. However, Guyana Stores made a claim for constitutional relief in a tax dispute with the GRA because the authority had failed to assess the taxes payable by the company in accordance with the provisions of Sections 70 and 78 of the Income Tax Act.

GSL had approached the local courts in 2012 to declare that the GRA’s request for unpaid taxes represented a violation of its constitutional right to protection of property. The matter was first heard in the High Court by Chief Justice (ag) Ian Chang, who at the time granted Conservatory Orders (COs) without hearing the GRA or the Attorney General (AG) of Guyana. Justice Chang had subsequently discharged those orders on application by the respondents, after considering their written submission and the court file. In so doing, the learned Chief Justice (ag) struck out the entire claim on the ground that a claim purely for declaratory relief with no consequential and executory orders cannot be maintained.
GSL then appealed the decision of Justice Chang and the CCJ upheld the decision to strike out the action because there was no violation of the company’s constitutional rights, and as such, GSL was not entitled to a declaration of any sorts. On Tuesday, Statia said a shareholder of the company was called and was given a chance to submit all of the outstanding tax returns after which he was required to submit a settlement proposal. A period of thirty days was given to the entity and that time has elapsed. The company now has until Monday to file its returns.

The Commissioner General made it clear that it is not in the interest of the revenue authority to seize and close business and so every effort is being made to work along with all the tax payers who may owe sizeable amounts of taxes, to assess how the outstanding balances can be paid off. “They also need to recognise that within that amount of $3.8B there is a sizeable amount of interest and penalties,” he said noting that the company’s behaviour is being assessed. “I keep saying all the time when you come to equity you have to come with clean hands and if you have pushed us around for all these years – you cannot expect that we are going to give you the olive branch,” Statia remarked, while adding that a sizeable amount of the $3.8B represents penalties and interest.
GSL is required to indicate to the Revenue Authority how it intends to liquidate the outstanding principal taxes. Thereafter, the parties will decide on how the payment will be accepted. “The least payment we are prepared to accept initially is just over $300M in the initial phase,” Statia told reporters.