Latest update November 21st, 2024 1:00 AM
Jordan instructs GRA’s Boss to go after tax evaders, smugglers
The Guyana Revenue Authority (GRA) is currently in the process of strengthening its Law Enforcement and Investigative Division (LEID), as the authority moves to tackle smuggling.
Finance Minister, Winston Jordan, in a recent interview with the Governme
Minister Winston Jordan (left) meeting with GRA’s Head, Khurshid Sattaur, earlier this year.
nt Information Agency (GINA), explained that GRA is now focusing on several additional areas of tax collection and law enforcement, to ensure compliance with the laws.
“I have been engaging the Commissioner and the staff … on more than one occasion, on the need to tighten enforcement and collection. I had this discussion only two days ago after looking at the revenues and so on, and I pointed to a number of areas that need to be given greater attention and the Commissioner was in agreement.”
Jordan explained that at the moment, GRA is in the process of shifting staff and strengthening the various departments, and that these necessary changes will become visible in the coming weeks.
Referring to a recent meeting with GRA’s Commissioner-General, Khurshid Sattaur, Minister Jordan disclosed that he asked the tax boss to beef up enforcement and anti-smuggling activities, “because smuggling is still big business in this country.”
The Minister is of the view that it is time that revenue agencies have a significant part of their staff in the fields, rather than operating out of air conditioned offices.
He, however, paused to commend GRA’s staffers.
“First, I want to pay a compliment to GRA and the staff for the work that they have done over time. They have consistently surpassed targets that were set, but having said that, there is quite a lot of work to be done.”
The Minister pointed out that significant emphasis needs to be placed on enforcing the relevant laws, as this is critical to the tax collection process, specifically in the area of self-employment.
“There are a number of self-employed, particularly high profile self-employed, who are paying some taxes to avoid the prying eyes of the Commissioner, or paying no taxes at all. We know two of those high profile categories, and I have asked him to pay far more attention than he has done in the past.”
With regard to stamping out smuggling, the Minister explained that an assessment of the Berbice Anti-Smuggling Squad (BASS) was done, and it was discovered that it was a duplication of the LEID, “so we have now moved to strengthen that LEID, both in terms of training and staff, and to have a major presence in that area.”
Speaking on gold smuggling, Minister Jordan related that over time, if one were to do an assessment or take a careful observation of this sector, the findings would state the obvious.
“You don’t have to be a wizard to know that if certain amounts of fuel are being used, somebody has to be a really rich person to be continuously in gold…using all that fuel, and you still not coming up with anything, you don’t have to be genius to know there are different ways in determining whether something is being smuggled or not.”
The Minister would be referring to troubling reports that gold declaration has fallen but indications are that smuggling to especially Suriname is high.
There have been growing complaints over the seemingly large number of tax evaders.
It has been reported that businesses have under-reported revenues and sales to lessen their taxes.
With GRA complaining about not enough Inspectors, there have been criticisms that small taxpayers were left to pick up the slack.
It is believed that billions of dollars is lost annually by GRA because of smuggling.
The Finance Minister is of the view that the GRA, together with other agencies, “whether it’s the police, the Guyana Gold Board, the Guyana Geology and Mines Commission (GGMC)- they have to have an Inter-Ministry Committee that will deal definitely with the issue of smuggling, particularly with gold.”
Meanwhile, on the issue of Forestry, the Minister explained that there is a significant loss of revenue, “because it seems as if we do not have the kind of Inspectorate to determine whether operators in those sectors are actually felling trees in accordance with the agreement, and that they are paying their royalties.”
While the Minister stated that he does not want to label anyone as corrupt, he believes that the systems are porous, when it comes to getting fair rewards for the country for the diminution of its natural resource base, specifically in the gold and forestry areas.
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