We are all in this thing together

Sep 26, 2014 Features / Columnists, Peeping Tom

I am an importer and I import a certain product, I have to deal with the Guyana Revenue Authority (GRA), because that is the agency that collects import taxes. As an importer, I have my obligations to pay my taxes. The GRA in turn has a duty to secure the confidentiality of the information that I am required to submit to them.
At the minimum, I would expect for them to keep confidential the prices at which I procure the product I am importing. I would equally expect them to keep secret, the names of my suppliers and the terms and conditions under which they have supplied me with the product.
If this information gets into the hands of my competitors, it can be used to undercut my business, since those who are not authorized to have this information would have access to my commercial information and can use this to put me out of business by underselling me.
It is equally expected that when the time comes for me to pay my income taxes that details such as my turnover, the taxes that I have paid and my liabilities, would be kept in the strictest of confidence.
If one of my competitors is given information as to the taxes that I have paid, they would from that information be able to make an assessment of my competitiveness and what it will take to break me.
For example, competitors knowing my taxes would be able to gauge my profits and from that be able to determine how long I can survive predatory pricing policies on their part. Thus they may be able to calculate that if they take losses for six months by dropping their prices below cost, it will hurt them but it would also bankrupt my business. This is why it is important that even the amount of taxes that I pay be kept a secret, unless this is required, as in the case of corporations to be publicly declared.
If my competitors know my turnover and the taxes that I pay they would also be able to determine my market share and thus be in a more advantageous position to adopt measures to put me out of the market. It is therefore unforgiveable for any tax agency to allow the turnover of a business to be made known to competitors.
It is also necessary for the tax authorities to keep under the strictest of secrecy the liabilities of a firm. This has so many implications that if this information along with the other mentioned above finds its way into the wrong hands it can lead to ruin.
This is why I am saying that any unauthorized passing of information on the taxes paid, the turnover, and the liabilities of any entity, should be seen as a serious issue in this country, and one that should be condemned not just by the businesses concerned, but by the private sector as a whole.
The unauthorized release of this information has severe implications for business in Guyana. It can lead to ruin of businesses to predatory takeovers, especially in the media, which at the moment is saturated in Guyana.
There are four daily newspapers in Guyana. We have a small economy and a small population. We also have online media sources that are providing instant news. The sector is highly competitive. It is not likely that four newspapers can co-exist for long in such a small economy. Eventually, diseconomies of scale will force one or more out of the business.
Any such decision should be left to market forces. It should not be hastened by the release of information which has the potential to be used to destroy the media houses in Guyana.
The same principle applies to businesses in Guyana. If your turnover, taxes paid and liabilities find its way into the wrong hands, it could mean the end for you.
We know in Guyana that there is a clique that is out to dominate the economy of Guyana. They have already made major inroads into certain sectors, and they will eventually come around to your nook.
This is why commercial information which is submitted to the tax authorities must be kept sacred, and it behooves the government to ensure that if there are reports of any such information finding its way into the wrong hands, then there should be an investigation launched and condign action taken against those found responsible and those who were part of any conspiracy to obtain the information.
Those found guilty of professional misconduct and aiding and abetting in the unauthorized release of privileged information should be fired. There should be zero tolerance for this type of offence; too much is at stake for businesses.

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