Introduction
Taxation without representation was one of the causes of the American Revolution and has ever since been an emotive appeal for those who consider themselves aggrieved by injustice. In a more peaceful environment the call is for a social compact – one of mutually enforceable interlocking rights and responsibilities, often between the State and the citizen. Where a breach occurs sanctions step in – penalties, including jail time for the tax cheat and for the Government, sanction through the ballot box. But the Government itself does not administer the tax laws or collects the taxes – it uses the tax authority as its alter ego or its agent. In the course of one’s life, one interacts with the tax authority more than any other arm of the Government. That Ram & McRae believes strongly that there needs to be a binding compact between the tax authority and the taxpayer is neither revolutionary nor new.
We sensed from the Minister’s Budget Speech a recognition of the need for a less combative, less adversarial relationship between the government and the governed. We believe that the mood is right for the establishment of a strong, enforceable charter between the taxpayer and the Guyana Revenue Authority. While we recognise that the incidence of tax evasion is extremely high, the traditional attitude of the tax administrator towards taxpayers who are often meeting or trying to meet their obligations leaves a lot to be desired.
Most taxpayers who have had dealings