Twelve companies owe $6.2B in taxes to GRA

Oct 11, 2013 News

– winding up proceedings started against KFC, COPS

The state’s Guyana Revenue Authority (GRA) has released a list of 12 businesses which it says owes over $6B in taxes and in which court judgments have been handed down.
Pointing out that the list released does not include all the names of the companies of which judgments have been made, GRA’s Commissioner-General Khurshid Sattaur said COPS Guyana Limited, a security company, and Friendship Hotel and Restaurant Holdings Inc., which runs the Kentucky Fried Chicken and Pizza Hut franchises, are among some of the biggest defaulters.
The taxes include Pay As You Earn (PAYE) and Value Added Tax (VAT).

GRA says that 12 companies owe over $6.2B in taxes and it finding difficulties in recovering the monies.

The companies which GRA said it obtained judgments “over a number of years” included COPS Guyana Limited – $433,066,071 (PAYE); Guyana Stores Limited – $354,184,590 (Corporate and other taxes); Didco Trading Co. $59,257,183 (PAYE) Friendship Hotel and Restaurant Holdings Inc. $618,491,299 (VAT); Ian Edwards trading as Universal Janitorial Services -$21,071,050 (PAYE); Interior Forest Industries Ltd -$20,504,044 (VAT); United Associates Security and Domestic Services -$14,584,694 (PAYE); Kayman Sankar Co. Ltd and Kayman Sankar Investment -$12,367,411 (PAYE); Mazaharally and Sons Ltd. -$11,753,080 (VAT); Don Gomes – $3,763,514 (PAYE) and Liana Cane Interiors – $2,367,411 (PAYE).
According to GRA, despite having obtained judgment against numerous taxpayers, it has encountered “significant difficulties” in enforcing court orders. “This hurdle has forced the GRA to take action to ensure delinquent taxpayers comply with the judgment orders.”
The tax agency has since instituted winding up proceedings against companies including COPS (Guyana) Ltd, Didco Trading Co., and Friendship Hotel and Restaurant Holdings Inc.
“A matter of paramount importance to the GRA is Demerara Distillers Limited (DDL) which involves consumption tax in the amount of $5,292,000,000, ($5.29B) and was determined by the Court of Appeal in the GRA’s favour.”
GRA said that in the case of DDL, the soft drink company has filed an appeal and “distinct application for judicial review/prerogative writ in the High Court.”
In the case of COPS (Guyana) Ltd, GRA pointed out that Sentinel Security Inc., another company, is conducting a similar business at the same location as COPS previously did, “and they continue the contracts previously held by COPS.”
In addition to winding up proceedings, GRA has also instituted levy proceedings against other “delinquent taxpayers”.
The body disclosed that Guyana Stores Ltd has failed to liquidate outstanding liabilities totaling $354,184,590. “The GRA has since demanded outstanding taxes.”
However, the company has filed a number of court actions preventing GRA from demanding the outstanding taxes. “On the 12th July, 2013, the Honourable Chief Justice (ag) Ian Chang determined the matter in favour of the GRA. This matter is currently being appealed by Guyana Stores Limited.”
The authority said that it will not tolerate non-compliance with court orders “and all outstanding judgments will be vigorously pursued by way of levy, garnishee and distress proceedings and other forms of execution.”

2 thoughts on “Twelve companies owe $6.2B in taxes to GRA”

Ashley Singh October 11, 2013 at 7:09 am

As the filth rises, it would seem that laws can only be enforced against the small man.
1. Yanni Chappa October 13, 2013 at 2:55 pm
  
  They have to pay. No excuses.