…Statia distances self from KN concessions stories

The Guyana Revenue Authority (GRA) on Friday warned that the unauthorized release of information is a serious offence while noting that it will “exercise great diligence in accordance with the law to sanction anyone found guilty.”

The statement by the Revenue Authority follows the publication of two articles which appeared in the Kaieteur News on May 17 and 18, 2018 respectively on the subject of tax concessions granted to foreign mining companies Aurora Gold Mines and Troy Resources.
The publisher of the article also released financial data relative to the concessions granted to the companies noting that the information was made available by the GRA. According to the articles, the two foreign companies, which are involved in large scale mining operations here, have benefitted from generous concession from 2016 to date.

“Against this backdrop, the GRA wishes to reiterate that while the quantum of concessions given to persons so benefitting should be published by the Authority, the information concerning itemised concessions are confidential in nature and that any unauthorised release is in breach of the oath of Confidentiality and Secrecy,” a statement to the media said Friday.

Section 4 (1) of the Income Tax Act, Chapter 81:01, states, that every person who has any official duty or is employed in the secrecy administration of this Act shall regard and deal with documents, information, returns, assessment lists and copies of those lists relating to the income or items of income of any person, as secret and confidential, and shall make and subscribe a declaration in the form prescribed to that effect before a magistrate.
The Revenue Authority, headed by Commissioner-General Godfrey Statia said in the past similar offenses which included acts of collusion tarnished the professionalism and reputation of the GRA which has a mandate to collect all revenue belonging to the Government and ensure that Guyana’s best interests are adequately safeguarded.

Meanwhile, the Commissioner-General who was referenced in the articles as stating that Guyana is not getting value for its concessions, denied making any such statement to that newspaper. “The Commissioner-General would like to reiterate that tax revenue is only one criteria of measurement. Other criteria include but are not limited to social benefits of increased employment and training, and foreign exchange contributions to the economy.”
The statement said too that on the investor’s side of the equation, operating and development costs, uncertainty in exploration activities, volatility of commodity prices, the inability of government to fund its own exploration, and the political and economic climate, all allow for increased risk, and the demand for a higher rate of return by investors.