Banks takes AG, GRA to court over tax charges

Apr 02, 2017 News

…DDL settlement at root of lawsuit
Banks DIH Limited has taken the Guyana Revenue Authority (GRA) and the Attorney General of Guyana to court claiming unequal and discriminatory treatment with regards to charging of consumption and excise taxes.
The legal representatives of the company are using a previous settlement between the revenue authority and the Demerara Distiller Limited (DDL) as a basis of their claims.
Little under a year ago, DDL announced that an amicable settlement has been reached with the GRA to resolve a longstanding dispute that began in 2002 over Consumption Tax.
This settlement followed an extended legal battle between DDL and GRA arising out of the Consumption Tax assessment levied against DDL by then Commissioner-General Khurshid Sattaur in January 2009, in the sum of $5.4 billion.
This assessment was immediately challenged in the High Court by DDL through its lawyers Miles Fitzpatrick, S.C. and Timothy Jonas.
DDL and GRA were able to recommence negotiations for a resolution of the methodology for a calculation of Consumption Tax (and its successor, Excise Tax), and they were able to arrive at a consensus to fully and finally settle all claims by the GRA and liability by DDL for both Consumption and Excise tax up to March 9, 2016 in the sum of $1.5B.
Banks – the applicant – is contending that it is entitled, under Article 149D of the Guyana Constitution to have the GRA treat with its liability of Consumption Tax for the years 2001 to 2006 and its liability to Excise Tax for the years 2007 to 2016 in the same or “materially similar” manner as GRA treated with DDL’s liability to the same taxes during the same periods.
“The acceptance by the GRA…the sum of $1.5 billion in full and final settlement for an outstanding pending assessment for consumption tax for the period 2001 to 2006 in the amount of $5.4 billion when during the very same period, the applicant (Banks) had paid in respect of consumption tax the sum of $12.839 billion,” is unequal, unfair and discriminatory, the Fixed Date Application read.
Banks is requesting that the GRA inquire into and present a report to the court, an accounting derived from its own internal records. Entailed in the report, Banks is asking that it includes – among other things – the amount of money paid by the Banks in respect of its consumption tax liability to the GRA for the years 2001 to 2006 indicating whether it was the sum of $12.8B or some other sum; the amount of money for which DDL was assessed by the GRA in respect of consumption taxes for the same period; to provide an explanation and give reasons why the GRA has accepted a smaller sum from DDL as opposed to Banks in respect of consumption tax for the period.

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