Questions of Govt policy-making keep piling up

Dear Editor,
The Guyana Revenue Authority (GRA) wishes to respond to a letter by Mr Robin Singh published on Friday, August 31, 2018 under the title “Questions for government policy making keep piling up.”
The letter writer insinuates that the position of the GRA and that of the Ministry of Foreign Affairs regarding the granting of concessions for remigrants is the “source of much confusion.” He made reference to the recent views expressed in the press by the Honourable Vice President and Minister of Foreign Affairs and the Commissioner-General of the GRA.
The Authority wishes to state categorically that the views of the two Agencies are in no way at odds. The Agencies are tasked with differing roles and responsibilities. The Ministry of Foreign Affairs ensures that the remigrant meets the criteria set out in the said scheme for being a remigrant; while the Ministry of Finance, through the GRA, is responsible for administering the tax concessions. Administering allows the GRA to withhold, suspend, or cancel the concessions when the remigrant is in breach of the conditions of the scheme.
In the case of motor vehicles, the exemption of duties on motor vehicles is granted on conditions pursuant to Sections 23 and 36 of the Customs Act, Chapter 82:01. These clearly state that the remigrant must:
* Maintain legal residence in Guyana in accordance with Section 2 of the Income Tax Act, Chapter 81:01, for five (5) years from the date of registration of the vehicle
* Report to the GRA in person every six (6) months with the motor vehicle certification of road worthiness/fitness, insurance and registration of inspection
* Reside in the country for at least 183 days of each year until the five-year period has expired
* Use the vehicle as a primary mode of transportation, and ensure that it remains in his/her possession within the five (5) years without being leased, transferred or sold.
The Commissioner-General’s remarks on the breaches are factual. There have been blatant breaches in the remigrant conditions specified. The statement that “one in every three” of the concessions is breached can be borne out by the figures and visits to remigrant residences, where the “high end” vehicles cannot be found and the remigrant cannot be located. Investigations have revealed that funds are provided to prospective remigrants, who buy the said high-end vehicles and transfer possession by means of powers of attorney, then return overseas during the stipulated period that they are required to remain in Guyana. Some of these high-end vehicles include Rolls Royces, Hummers, Range Rovers, and Ferraris.
To curb this practice, the GRA has been requesting the source of funds for these applicants. These acts constitute serious offences that warrant the Commissioner-General, under Section 36 of the Customs Act, to impose penalties, inclusive of forfeiture or fines in lieu of forfeiture. In December 31, 2017 alone, over $50 million in fines, penalties and duties were recouped from these individuals.
Lastly, the Commissioner-General’s views on tax credits versus exemptions are well known. These views are in keeping with international norms and those of the Tax Reform Committee of which he was a member.

Sincerely,
Godfrey Statia
Commissioner-
General