High Court Lamborghini Judgement “cripples” State’s power to recover taxes – Nandlall

Attorney General (AG) and Minister of Legal Affairs Anil Nandlall has sharply criticised the recent High Court ruling that blocked the Guyana Revenue Authority (GRA) from retroactively reassessing taxes owed on the undervalued Lamborghini imported by United States (US)-sanctioned businessman Azruddin Mohamed.
The decision, handed down by Justice Gino Persaud on Friday, came in the civil case filed by the GRA earlier this year after it was discovered that there is official documentation indicating that the vehicle cost US$695,000 – far above the US$75,300 initially declared by Mohamed in his tax filings for the vehicle at the time of importation.
However, it was not until May 13 that the GRA received the evidence. The invoice was stamped as paid. The particulars of the Lamborghini identified in the invoice were the same as Mohamed’s Lamborghini. The newly uncovered evidence triggered a post-clearance reassessment by the GRA and a demand for additional taxes.
However, the High Court ruled against the Authority, prompting what Nandlall described as a deeply troubling blow to the State’s ability to enforce tax compliance.
In an interview posted to his social media page on Saturday, Nandlall warned that the ruling, if allowed to stand, would severely undermine the GRA’s legal mandate.
“The general legal power of the GRA to go back and reassess is an undoubted power that this Judge here is saying that they can’t exercise,” Nandlall said.
He added that, “There’s some mention that there must be some criminal proceedings, and there must be a conviction on those criminal proceedings. That is absolutely wrong. Taxation legislation provides for GRA to recover taxes through the criminal path and the civil path, and the laws are structured in such a way that they can be independently pursued.”
The AG stressed that tax recovery mechanisms have always allowed the GRA to re-examine returns, particularly where fraud is suspected.
“GRA is duty bound to reassess and recompute the taxes and embark on a process… in getting to what the right taxes are. This Judgement is wrong. It almost borders on irrationality, and I say this in the greatest respect. It interferes with one of the most sacrosanct powers of the state to collect taxes,” Nandlall explained.
Nandlall argued that if the ruling stands, taxpayers, and not the State, would effectively determine their own tax liabilities.
“Let’s say someone submits 10 years of returns… GRA is bound to accept it once they receive it, and they issue some documents to say they have received it. They’ve lost all power to scrutinise and examine and investigate whatever you have submitted, irrespective if they have evidence that you have submitted fraudulent information and fraudulent documents. At what level does that ever make sense? That is the effect of this Judgement,” Nandlall noted.
Nandlall further explained that current laws, including provisions governing post-clearance audits, expressly allow the GRA to return to declarations if discrepancies or fraud later arise. These mechanisms, he explained, exist precisely because customs and tax authorities cannot conduct full verification at the point of every import or filing.
Nandlall said the GRA had already signalled its intention to appeal, insisting that it had “no choice” in the matter. He vowed that the State would not allow a ruling to stand that “cripples” the statutory powers Parliament vested in the tax authority.
“The Attorney General cannot remain silent in view of a pronouncement from a court that says that the state can’t exercise its legal repertoire of powers to recover taxes that are owing.”
The appeal is expected to be filed promptly, with efforts to fast-track its hearing.
The Judge’s ruling comes after the GRA recently withdrew and discontinued criminal tax charges against Mohamed and his father, Nazar Mohamed, due to a request from the US for their extradition.
Nandlall also made clear that the civil ruling does not affect the ongoing extradition proceedings involving Azruddin Mohamed and his father, Nazar Mohamed. Both men were sanctioned by OFAC in 2024 and indicted in the United States on 11 criminal charges related to alleged gold smuggling, money laundering, mail fraud and wire fraud.
“It has no impact whatsoever on the extradition proceedings,” the AG said.
Those proceedings, he noted, were influenced only by the withdrawal of criminal charges previously before the local Magistrates’ court.
The extradition matter has been adjourned to November 24, with both men remaining on $150,000 bail.