Two weeks after the Guyana Revenue Authority (GRA) issued a demand letter to SOL Guyana Inc (Sol) for more than $3.3 billion in Excise Taxes and interest, the two entities are engaged in a discussion on the way forward.
The monies, according to GRA derive from Sol’s alleged misuse of the Permits for Immediate Delivery (PID) system by commingling tax-exempted fuel with fuel not exempted or partially exempted so as to avoid paying taxes owed on the required basis. Specifically they relate to the alleged misuse of Tax Exemption letters issued to Esso Exploration and Production Guyana Limited (EEPGL), the ExxonMobil subsidiary operating in Guyana.
“SOL Guyana Inc. utilized EEPGL’s tax exemption letters to import and enter quantities of Gasoil…at a lower rate of Excise Tax, and failed to deliver the full amounts to [EEPGL] as required…This act in itself is a flagrant disregard of the laws administered and the Revenue Authority will not condone and allow the government revenues to be used as ‘turn overs’ or in any such manner,” the letter dated March 9 maintains.