THE Guyana Revenue Authority (GRA) remains in a tight position as it seeks to up tax collection from private practitioners who filed court proceedings more than three years ago, barring it from increasing professional certification fee.

While some of these practitioners are among the most well paid earners in the country, the GRA is unable to track whether they adhere to tax laws by becoming GRA-certified and paying their fair share of taxes.

The state agency has resorted to public pleas for practitioners to acquire their professional certificates at $10,000 yearly.
Head of the Communication and Tax Advisory Division, Gavin Lowe, had confirmed to the Guyana Chronicle that legal proceedings are ongoing against the GRA, preventing it from moving to ensure practitioners pay their share in taxes.

The Guyana Chronicle has learnt that under the previous administration attempts were made to increase professional certification fees for persons involved in the legal, medical, engineering, accounting and survey, among other fields.
The new sum ranged from $75,000 to $250,000, based on the field of work and estimated earnings.
However, moves were made by primarily legal practitioners and members from at least two other fields, to have the court halt the increases.

Submissions in the matter are still being heard in the High Court.
According to Section 39 of the Tax Act Chapter 80:01, “…professional persons practicing privately for a reward in any year are required by law to be the holder of a practice certificate, which must be applied for from the GRA on or before February 28 of each year…”

The law goes on to say that no such person must practice their trade for reward without first acquiring their certificate.
However, while such persons could be subjected to six months imprisonment for not having the certificate, financial penalties remain archaic with fines ranging from not less than $1500 nor more than $3000.

If professionals continue to commit the offence, they are then liable to an additional $100 for each day the offence continued, subsequent to the date to which they were convicted.
The Tax Act also requires practitioners to prominently display their certificates as a means of customers recognising the authenticity of the professional, since the GRA Commissioner-General is authorised to revoke the certificate for reasons such as a questionable professional behaviour, which results in irreparable damage to his/her clients.

The Act says “Any professional who fails to display his certificate in a conspicuous place shall in accordance with Section 39(9) (b), be liable on summary conviction to a fine of not less than $500 nor more than $1000 and, in addition to such fine, a sum of $50 for each day the offence continues subsequent to the date to which the conviction relates.”
Private professionals can rake in millions of dollars on an annual basis, but the GRA has reported difficulty in keeping tabs on these persons as they were not only failing to acquire the certificate, but evading tax payments as a result.

The agency’s communication department told the Guyana Chronicle that it recognised the need to step up its call to private persons to adhere to their obligations, since avenues to address the matter are currently limited.
According to the GRA website, only 98 professionals acquired certificates last year.