– due to ‘grossly understated’ values of three high-end vehicles

THE Guyana Revenue Authority (GRA), in response to a Facebook post purportedly being circulated by “Team Mohamed” about the payment of taxes on three vehicles, has said that the values of those imports were grossly understated.
According to GRA, the post included GRA receipts on the payment of over $98.6 million in taxes to the authority on three vehicles, namely two Land Cruisers and a Lamborghini, and further claims of the contribution of billions of dollars to the nation’s economic development through taxes.

“The GRA reiterates that the authority continues to adhere to the rules of confidentiality regarding taxpayers’ information and for clarity will only respond to information that may be in the public domain for clarity, hence this response.
“Specifically in regard to the said vehicles, (and nothing else), the authority advises that Guyana has a voluntary tax compliance system whereby upon import, a declaration is submitted with values as declared by the importer, and taxes are self-assessed on this basis and paid thereon on the values so declared,” the revenue authority said in a press release on Thursday.

On this principle, according to GRA, these high-end vehicles were released (for facilitation of trade) into the custody of the importer, and the importer was advised of the post clearance and valuation steps that are usually undertaken by the respective departments of the authority.
These departments, utilising principles as underpinned by the WTO/WCO, by tax legislation and by Anti-Money Laundering regulations, thereafter, would verify the true acquisition value/cost of the said imports, and make the necessary adjustments to the applicable collectible tax.
Regarding the importation of the three vehicles, GRA said, having followed these principles, determined that the values of the said imports, were grossly understated, and moreso, in the case of the Lamborghini, thereby allowing for taxes in excess of $300 million in revenue being underpaid and collectible from the importer.

“The GRA, therefore, perceives that any such post may be an attempt to deny the State of its lawful revenues. The authority strives to collect taxes in a fair, consistent and equitable manner and expect citizens to pay their true and rightful tax in accordance with their income, lifestyle and in keeping with applicable legislation. The mere statement of taxes paid does not meet the standard of a taxpayer paying his/her true, correct and rightful taxes to the State,” GRA said.
The authority, again, reminded the public that misrepresenting the declared particulars or misstating the facts to avoid payment of the full taxes are subject to prosecution.

“As such, persons breaching the laws with intent to defraud the Revenue Authority of any taxes may be guilty of an offence and liable to fines and/or imprisonment in accordance with the provisions of the laws administered. The Revenue Authority once again pleads with taxpayers to cease and desist from

such activity and also to the general public to report any illicit or unlawful activities in confidence by contacting the GRA on telephone number 227-6060.
“Whistleblowers will be rewarded for any information provided which will be dealt with strict confidentiality in accordance with the provisions of the laws,” GRA said.