Govt wants clear, across-the- board terms for City Hall’s tax amnesty

…AG says legal compliance paramount

The Mayor and Councillors of the City of Georgetown (M&CC) will have to submit clear terms and conditions of the planned tax amnesty before the exercise is approved by the Government.
Vice President Dr Bharrat Jagdeo on Thursday said this matter will have to be watched with “hawk eyes”, since amnesty exercises at the City Hall in the past have been sources of corruption, whereby one-on-one deals were made.
“If they need an amnesty, they should have an amnesty, but it should be announced what are the terms of the amnesty, so there [will be] no need to meet with people,” he noted.
According to Jagdeo, the Town Clerk or the City Treasurer can apply these terms. He pointed out that it should be determined whether there would be a waiver of the late charge and/or part of the principal amount. This, he added, should also be an across-the-board offer to everyone.
“That is how we want it approached, if they do want an amnesty; but not where the mayor and others can sit in a room and you have to meet them and they then can say, ‘Oh, we’ll give you 20% and you will get 30%’. That is a big problem, and that is something we have to watch,” VP Jagdeo stated.
The Mayor and Councillors of the City of Georgetown wants to offer a tax amnesty in order to raise funds to pay off a court judgement owed to the Guyana Revenue Authority (GRA). However, following the advice of the Attorney General, Local Government Minister Anand Persaud last month wrote the Town Clerk requesting that the financial regulation that authorises the conduct of the amnesty be provided, as well as the ground on which the decision to offer the amnesty is based. The minister also requested that the amnesty be halted while its lawfulness is being determined.

Threatened
In response, Georgetown Mayor Alfred Mentore, who is aligned with the A Partnership for National Unity (APNU) Opposition, has threatened to take legal action against the Government for ‘blocking’ the amnesty. He also accused Government of wanting City Hall to go into bankruptcy – a claim which Attorney General and Legal Affairs Minister Anil Nandlall, S.C., has dismissed.
The AG has argued that the Local Government Minister was merely trying to ascertain whether the legal requirements set out in the governing statue are being complied with by the City Council.
“Those requests which were made of the Town Clerk are all requirements of the law, contained in the relevant provisions of the Municipal and District Council Act by which the Georgetown Mayor and City Council is bound. The Minister was not asking for whimsical and arbitrary information,” Nandlall stated during his weekly programme of Issues in the News.
He went on to warn the Georgetown City Council that legal consequences would follow if they are to go ahead with the amnesty without first meeting certain legal requirements catered for in the law.
“But if [the mayor] wishes, he can go ahead and violate the law and grant the amnesty. But then the law will have to take its course, because someone will have to be held responsible for all the monies waived,” the Attorney General has stressed.
According to the AG, while Government has no intention of interfering with the autonomy of the M&CC, the body is not above the law, and like all other state agencies, must comply with the country’s laws.

Rubbished
Nandlall went on to rubbish the Georgetown Mayor’s allegation that the People’s Progressive Party/Civic (PPP/C) Administration is deliberately pushing City Hall into bankruptcy, in order to have the city properties go up for sale and have their “investment friends” buy them up.
“It is the most asinine but yet dangerous and divisive allegation made without any basis whatsoever,” the AG argued.
Back in December 2021, former Georgetown Mayor Ubraj Narine had announced an amnesty for taxpayers who have outstanding rates and taxes for the municipality and have failed to fulfil these obligations. This was after the Council approved, via a majority vote, the Municipal Amnesty Policy.
“The Municipal Amnesty Policy is to establish and maintain orderly procedure for ratepayers, who will receive pardons on a percentage of their tax liability, and for the city to receive outstanding taxes in the form of an agreement that can benefit citizens, organisations, and the Council,” Narine had explained.
In recent years, billions have been owed by taxpayers and commercial businesses to the Council. The then mayor had said the Council is focused on improving revenue collection for the city. (G8)