The Guyana Revenue Authority (GRA) will be using the Taxpayer Identification Number to track tax evaders and as an example of this problem it yesterday said it had discovered significant under-invoicing by a major importer of stationery supplies. The importer was not named.
In addition, the GRA will no longer be allowing Transfer of Rights for goods imported for commercial, business and personal purposes, according to a GRA press release.
In the press release the Authority noted that “the GRA is advising importers and customs brokers to take note that with effect from January 1, 2007, the Transfer of Rights will no longer be granted.”
The release further stated that it is important that importers ensure that their import documents (invoices, bills of lading and other documentation relating to imported goods) are properly completed with the correct names (legal and business/trading names), business addresses and an accurate description of the goods imported.
It was stated that this measure is being instituted to curb previous practices of tax evasion at the point of import. “Previously,” said the release, “such unscrupulous actions were not easily detected.”
The release noted as well that the TIN, which replaces the import declaration number, and the Internal Revenue Department Number, is also used on Tax Invoices for transactions among VAT registrants.
It is expected that the use of the TIN will aid the GRA to track business activities and help in detecting tax fraud and evasion. “With the introduction of the VAT, the GRA will be able to administer other taxes equally effective,” according to the GRA release.
The GRA said that it “believes it is because of these widespread tax evasion practices by some businesses that the VAT is being met with resistance from some section of the business community.”
Yet again, the GRA appealed to the public to support the VAT implementation process.
And in a press release on Monday the GRA said that it was assessing the implementation of VAT in various regions; and will be placing permanent VAT officers equipped with the necessary knowledge and skills to guide businesses and the public.
The GRA has trained officers at its branches in Anna Regina, Region Two; New Amsterdam and Skeldon in Region Six; Lethem, Region Nine and in Linden.
In addition, officers from the Compliance and Arrears Collection and from the Legislation and Tax Advisory Services Units, conducted several field visits to assist businesses to comply with VAT.
