Dear Editor,
In the recent news the GRA has stated that it has seen an unprecedented level of filing of tax returns (a whopping 100% increase) and massive increases of taxes collected, even as we face a pandemic that has resulted in loss of jobs and economic hardship for the ordinary Guyanese citizen. When we consider these increases we must remember that the GRA has been over the years employing certain tactics (some in my opinion does not fall within the laws of Guyana) to derive more and more taxes from the ordinary Guyanese. And, mustn’t the GRA follow the law as every Guyanese must? While every man must pay his fair share, it is my opinion that the GRA has morphed into a monster that will cause economic hardship for many on their radar. For the very first time in almost 2 decades of filing tax returns I received a notice of assessment from the GRA. I wonder what the statistics are for notice of assessments dispatched by the GRA. How many persons out there has received these notice of assessments? What are the grounds for sending them out? Why did I receive one?
The reason why I ask these questions is because the 2-sided sheet of paper (only the front having figures and the back having predetermined information) indicates a recalculation of my income tax and an amount now outstanding, which was not so when I had filed it, without any explanation whatsoever. After reviewing the document, what I have deduced is that the GRA has by some magical method taken the total income declared and deducted a lower value of expenses from what was initially declared, thus resulting in me owing taxes above what was initially declared and paid. How did they come up with the lower value of expenses? They never asked me for any records in the past if there was a question of the expenses being accurate, but they did not make any changes to the income figure, so why adjust one and not the other. I guess this is a tactic used to now make me object to their recalculation as per the notice of assessment and thus under the law they can now request my books and whatever else they wish to pry into. But I am not afraid of giving them my records, what I am upset about is the method used, which again I believe is unlawful. I wonder how many more this is happening to, I am 100% sure (just like the 100% increase in tax returns) that this is happening to many more who are too scared to standup to the GRA, because after all the GRA is a frightening organization, isn’t it?
The above is my personal struggle with the GRA and I would have never wanted to make it public but over the last weekend whilst having some drinks with two of my dear friends we started discussing the recent headlines about the GRA and a trend began to form in my mind about the divisive tactics being employed to garner more taxes. One of my friends noted that he too received a notice of assessment. However, the tactic used on him is somewhat different. He has a small business (not incorporated nor even registered for that matter) and also receives income from rental of part of his business property. As the law states he declared all of his income and all of his expenses, which resulted in a loss. However, what the GRA sought to do in their notice of assessment was separate his two income streams and show that he made a profit from rental, thus resulting in taxes being payable. Now remember this is an individual, so how is it possible for one taxpayer to make a profit and a loss in the same year? What the GRA has essentially done here is ignore the income and expenses totally from the business because it does not fit their agenda of collecting more taxes. Isn’t this an illegal act? I mean if my friend had not declared “all” of his income and expenses he would have been in breach of the law, so why is the GRA allowed to pick and choose which figures they will use and which they won’t use to calculate your taxes? My other friend who for the first time applied for Mortgage Interest Relief in 2020 was given the royal run around by the GRA. He made claims for benefits from 2015 to 2020 and was told that it was approved, but still has not received the benefits. He was also told by the GRA staff that because they recently changed their software he may not be able to receive the MIR for years prior to 2019 because the new software does not have the information before 2019 and they are waiting on the head office to tell them what to do. Isn’t that the most ridiculous thing you have ever heard?
Now let me explain to you the royal run around he experienced when he first applied for the MIR. He is a Public Servant who purchased a minibus that was registered in the “B” series, he never used the bus for commercial purposes but rather to take his family around and assist with moving groceries for his parents who sells in the market. He never thought to transfer the vehicle to private and had never experienced any issue in the past. When he made the application for the MIR the GRA demanded that he declared bus income because the vehicle was in the B series. I wonder if the GRA has issued notice of assessments to all the persons who have a vehicle registered in the B and H series. Now these are the ordinary citizen being squeezed by the GRA for every cent. Unless something is urgently done the actions of the GRA will cause much economic devastation to the ordinary man. Thank you for allowing me to highlight this issue.
Sincerely,
Name and Address Provided
