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GRA targets Internet phone providers for tax revenue

Nov 29, 2008 News

The Guyana Revenue Authority will be aggressively pursuing those local Internet call providers who operate by offering telephone calls at the expense of the legitimate service providers. At the root of their dilemma is the fact that they have been identified as tax dodgers.

Yesterday, Head of the Presidential Secretariat, Dr. Roger Luncheon, said that the GRA has been urged to be more vigilant in enforcing the tax laws by proceeding against tax evaders.

According to Dr. Luncheon, the call came in the wake of information and details about telecommunication service providers and operators who use the Internet for sending and receiving calls in and out of Guyana.
The reports, he stated, suggest that the volume of these operations is significant, and as a consequence, the tax evasion results in substantial loss in revenue to the state.

“The tax laws of Guyana are quite clear; once you earn income, that income is taxable, so indeed the GRA has to do first an investigation and assessment of who are these telecommunication service providers and operators.”

Having done investigations, Dr. Luncheon said, suitable mechanisms for assessing these persons’ earnings will be carried out.

This, he noted, will determine how much revenue is being lost annually, or to make a projection about revenue that could be collected.

Earlier this week, the GRA, in a release, noted that it has taken note of the large number of individuals and entities that have become involved in the international telephone call business.

According to the GRA, the effects of these operations are evident in the significant reduction in revenue collected from legitimate providers of international telephone service.

“These operations are illegitimate and essentially result in tax evasion, since no revenue is paid on these calls. These operations are increasing rapidly, and GRA’s calculations indicate that their collective impact on the national revenue collection effort is too significant to ignore,” the release stated.

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