The Guyana Revenue Authority (GRA) today said that Team Mohamed had understated the value of three imported vehicles – including a Lamborghini – by $300m.
In a statement, the GRA was responding to a post several days ago by Team Mohamed which highlighted the amount of taxes it had been paying to the state. Team Mohamed said: “In fact, with just three vehicles – two Land Cruisers and a Lamborghini – the GRA collected $98.6 million in taxes from the Mohameds”.
In its response today, the GRA said it continues to adhere to the rules of confidentiality regarding taxpayers’ information and will only respond to information that may be in the public domain for clarity.
Addressing the three vehicles raised by Team Mohamed, the GRA said that Guyana has a voluntary tax compliance system whereby upon import, a declaration is submitted with values as declared by the importer, and taxes are self-assessed on this basis and paid thereon on the values so declared.
On this principle, these high-end vehicles were released (for facilitation of trade) into the custody of the Importer and the Importer advised of the post clearance and valuation steps that are usually undertaken by the respective departments of the Authority. These departments utilizing principles as underpinned by the World Trade Organisation/World Customs Organisation, by tax legislation and by Anti-Money Laundering regulations thereafter would verify the true acquisition value/cost of the said imports, and make the necessary adjustments to the applicable collectible tax.
“In the above instances, the GRA having followed these principles determined that the values of the said imports, were grossly understated, and moreso, in the case of the Lamborghini, thereby allowing for taxes in excess of 300 million dollars in revenue being underpaid and collectible from the Importer. The GRA therefore perceives that any such post may be an attempt to deny the State of its lawful revenues. The Authority strives to collect taxes in a fair, consistent and equitable manner and expect citizens to pay their true and rightful tax in accordance with their income, lifestyle and in keeping with applicable legislation. The mere statement of taxes paid does not meet the standard of a taxpayer paying his/her true, correct and rightful taxes to the State”, the tax collecting agency asserted.
The GRA reminded that misrepresenting the declared particulars or misstating the facts to avoid payment of the full taxes are subject to prosecution. As such, persons breaching the laws with intent to defraud the Revenue Authority of any taxes may be guilty of an offence and liable to fines and/or imprisonment in accordance with the provisions of the laws administered, the statement said.
“The Revenue Authority once again pleads with taxpayers to cease and desist from such activity and also to the General Public to report any illicit or unlawful activities in confidence by contacting the GRA on telephone number 227-6060”, the GRA said. Whistleblowers, it added, will be rewarded for any information provided which will be dealt with strict confidentiality in accordance with the provisions of the laws.
In its Facebook post, Team Mohamed said that Mohamed’s Enterprise is categorized among the largest tax payers in Guyana and “yet in recent weeks, a few Guyanese bent on creating mischief have raised questions about their tax history”.
It said: “In fact, with just three vehicles – two Land Cruisers and a Lamborghini – the GRA collected $98.6 million in taxes from the Mohameds.
“It’s clear that the Mohameds have contributed billions of dollars to the nation’s economic development through taxes, that is a matter of fact”, the post said.
It added that the Mohameds have never used their Investment Development Agreement, which covers their quarry and gold mining operations, to import these vehicles.
“Further, scores of LOCAL and FOREIGN COMPANIES have contributed LITTLE or NOTHING to the revenue collection system in this country”, the post added.
