Dear Editor,
I was flabbergasted by Norman McLean’s authoritative statement in the Kaieteur News of July 18 that “In fact, all parties should be very happy that for the first time in living memory any bauxite company has turned a profit and has been able to pay corporate tax above and beyond the amount of royalty it would have had to pay.”
I do not know what Mr McLean’s definition of living memory is; there are some people still alive who cannot remember events that took place one week ago – some of them conveniently. However, I am still alive and am thankful that my memory has not yet deserted me; anyhow I still do not depend entirely on my memory; I like to refer to authentic documented information on matters I consider important.
With regard to the first part of Mr McLean’s statement, there are several reports that show Alcan and even Reynolds paying corporation tax in the 1960s which I think is not outside the realm of recorded history. In the case of the state-owned industry I would like to refer Mr McLean to the following extract from the audited accounts of Guybau and later Guymine between 1972 (the first full year under nationalization) and 1980, a period again I think falls within the realm of living memory.
Guyana Bauxite Industry
Financial statement 1972-1980
(000 US$}
Year Net Profit before tax Tax
1972 10814 4636
1973 7661 3602
1974 16093 7881
1975 21077 9513
1976 20819 9714
1977 25396 11687
1978 23116 10285
1979 11067 2556
1`980 18560 5990
1972-1974—Linden only
1075-1980-Linden and Berbice
I would be delighted if Mr McLean could produce the data in support of his statement that the companies in the industry paid no taxes over that period. If perchance he does not dispute the data, I would be further delighted to see the data that support the second part of his statement that the taxes paid in those years were not “above and beyond the amount of royalty it would have had to pay.”
Yours faithfully,
Sylvester Carmichael