The Guyana Revenue Authority (GRA) on Wednesday warned over the abuse of remigrant concessions and said it will do everything possible to protect the integrity of the scheme.
This warning comes in the wake of a highly publicized case that involved two Lexus vehicles which had been in the use of persons other than the remigrants to whom the concessions were granted.
The GRA in a statement emphasised that concessions are not by right, but have preconditions as well as post transaction conditions.
It said that in the case of remigrants, it is the norm for them to provide the necessary proof of the use of their assets prior to their remigrant status being obtained. This is apart from such items being registered legally in their name. The GRA said that one such proof is the presentation of insurance documents affirming the use of their vehicle or other large capital items. The remigrant seeking the concession would also have to show that he or she is the holder of a valid driver’s licence.
“Recently it has come to the attention of the agency that a large number of remigrants, having returned to Guyana from their sojourn overseas, are not keeping for their use, the assets that are presumably their property acquired while living abroad. The GRA holds the view that this is highly irregular and advises that this will in no form or shape be condoned by the agency. The agency’s letter is very clear in that it indicates that the concession is granted for the specific use by remigrants and should not be transferred, leased or sold for a period of 3 years after one’s return to take up their residence in Guyana as a bona fide remigrant”, the agency said.
The GRA said that many remigrants when found not to be in possession of their vehicles use a variety of excuses including that they had lent their assets to their close relatives among others. “The GRA views this as a violation of the condition under which the remigrants are granted their concessions, and will take all necessary action to enforce the penalty clause under which violation of the concessions occurs. Where the remigrants are unwilling or unable to pay the pro rata taxes or in some cases the entire amount due, recourse will be taken to forfeit such assets”, the agency warned.
In determining genuine remigrants, the GRA said that the post Audit activity by the agency is not only to validate the invoices and title used in the transaction, which are often times highly tampered, but also to disclose relevant tax information under the various treaties that apply to the GRA. The GRA said this includes the recent agreement signed on to by the Government to implement the Foreign Account Tax Compliance Act (FATCA) as it relates to United States residents. While several locally-based banks have announced compliance with FATCA, the government has not issued an official position on it.
“The GRA urges those who are contemplating making use of concession schemes to be cognizant of the laws including anti money laundering legislation, regulations, international agreements and policies governing same as there are serious consequences once found guilty of violating the laws pertaining to such offences”, the release said.
Last week, it was disclosed that the GRA was investigating the case of remigrants Narootandeo and Gharbassi Brijnanan whose two vehicles that concessions had been granted on were being used by the publisher of Kaieteur News Glenn Lall and his wife. Lall later accused the GRA of hounding him because of his newspaper’s reportage on various matters.
GRA Commissioner-General Khurshid Sattaur said the issue was with the remigrants and the possibility that they owed over $102 million in taxes on the two luxury Sports Utility Vehicles (SUVs), which were brought into the country through concessions granted under the remigrant scheme.
He said there was an ongoing investigation into the alleged fraud and that the Auditor General’s office would need to speak to the Brijnanans.
He added that the investigation would need to determine how long the remigrants owned the vehicles prior to them being brought into Guyana and if in fact they were in possession of the vehicles once they were brought into the country.
The GRA boss also said the way the investigation was progressing Lall’s involvement could possibly lead to the remigrants being questioned on where the money to purchase the vehicles came from. He said querying where remigrants would have obtained money to purchase vehicles was not the norm but given the ferocity with which the investigation has been attacked by the Kaieteur News owner, it would need to be further looked into.
Sattaur also said that under the remigrant programme persons would need to go into or make contact with the GRA every six months to ensure that the concessions provided for under the remigrant programme were being properly utilised.
Lall, who told Stabroek News that the Brijnanans have been family friends for over 27 years, admitted that he would borrow the vehicles and use them from time to time.
