The filing of Value-Added Tax (VAT) returns on the due dates have decreased by 14 per cent to 16 per cent, for the first quarter of the year and the Guyana Revenue Authority (GRA) is calling for “prompt” filing of returns to avoid penalties.
In a press release yesterday, Assistant Commissioner of VAT Operations Bridget Abraham said the “latter half of 2007 has seen a notable drop in the rate of VAT returns being filed by the due date”.
She said GRA records show that for the first half of 2007 the rate of submission was between 75 per cent and 80 per cent, but for the period August to October, the rate of submission was between 64 per cent and 66 per cent, “with a number of businesses either filing late returns or none at all.”
The authority said that even in cases where no transactions were done or no VAT was collected for the taxable period, which is one calendar month, registrants are still required to file ‘nil’ returns in order to keep their records up to date.
Abraham said, “failure on the part of businesses to file their liability statements may result in the department raising an assessment and the registrant going through the motion of objecting.” Returns are due 15 working days after the end of each tax period.
Meanwhile, Abraham said a contributing factor to the late filing of returns is that some businesses are still not keeping proper books and records, which in turn makes it difficult for them to extract the correct figures and to do so in a timely manner.
The fine for filing late returns is $1,000 for every day, or part thereof, that the return remains outstanding or ten per cent of the tax due, whichever is greater. Failing to file VAT returns also constitutes a criminal offence and persons can be fined up to $15,000 if convicted and be imprisoned for up to three months. Several VAT defaulters are currently before the court for failing to file VAT returns.
The GRA said VAT registrants can submit their returns at its branch offices in Linden, New Amsterdam, Corriverton, Lethem, Anna Regina, Parika, Rosignol and in the city. In Georgetown, returns can be submitted at the General Post Office, at Customs House and at the Albert Street VAT office.
Consumers continue to complain that the introduction of VAT this year has driven up the cost of living, but the GRA and President Bharrat Jagdeo have denied this, despite rising prices.
