Customs chief’s vehicle probe… Transaction reveals GRA’s system was tampered with

May 26, 2017 News

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The head of Customs was recently sent off by the Guyana Revenue Authority (GRA) on his annual leave. This followed news reports that something was highly irregular with a transaction involving a duty free concession that the official benefitted from.

However, the matter is refusing to go away, as there are details emerging that raise serious questions about the integrity of the database of that state agency.

That database, known as the Total Revenue Integrated Processing System (TRIPS), which is supposed to be closely protected because of the sensitivity of taxpayers’ information, was supposed to have safeguards that make it difficult for entries to be deleted or even back-dated.

Under regulations, pertinent shipping documents, including duty free letters have to be presented and entered, where applicable, before a vehicle can be released from the wharves or warehouses that Customs control.
And even before the vehicle is released, the pertinent taxes and duties also have to be paid over.

But from GRA’s records, it appears that efforts were made to tamper with GRA’s database to correct a number of errors made in January when the Sport Utility Vehicle (SUV) belonging to Wills was registered.

It has raised alarms bells as to how protected GRA’s system really is, and there are several things wrong with the transaction.

According to details emerging, Wills, who was promoted last year to that key revenue collection position, after serving in GRA’s legal department, decided to import a 2008 Toyota Harrier.

He applied to the Department of Public Service, asking for a duty free waiver on the SUV, which has an engine size of 2362cc (Cubic Capacity). However, the department turned down the application, noting that the vehicle was more than eight years old and in any case, Wills’ position did not qualified him for that size of engine. He was qualified for a vehicle under 2000cc.

Last year, the administration passed new laws that restricted the importation of vehicles – cars, vans, minibuses – that were more than eight years old. This was to protect the country from becoming a dumping ground for old vehicles, and was in line with a move to ‘green’ Guyana.

With regards to the engine size issue, only parliamentarians, judges, certain military and law enforcement officials, and remigrants are allowed duty free waivers on vehicles that are over the 2000cc size.

The Department of Public Service would have noted this fact in rejecting the Customs’ head application, in November. However, by the time that rejection had come, the SUV was already in the country.

REGISTRATION

On January 13th, Wills allegedly moved to register the vehicle. He was registered as a remigrant and under the current calculation, paid only 10 percent of the value – he paid just over $180,000. The vehicle was valued at over $1.8M.

By January 16th, Wills paid over the required amount via a cheque and the necessary entries were made that generated permission for the release of the vehicle.

Other than the fact that Wills was not a remigrant, the matter would not have raised eyebrows or come to light, except for what happened next.

Last month, several entries were made to GRA’s TRIPS, but it could not be backdated because the system is not configured that way.

The entries indicated that Wills was no longer considered a remigrant. Rather, he suddenly became a normal public servant and was to pay the duties and taxes for the vehicle as if he had been granted a duty free concession. That amounted to over $1.8M.

There are indications that another duty free letter was issued to replace the one used in January.

The problem is that Wills did not receive permission for a duty free waiver from the Department of Public Service.

So how did he receive it? From indications, GRA itself granted him the waiver. GRA said that it had the flexibility to do so as it was a “body corporate” and “semi-autonomous agency” governed by a board. This is highly irregular and would have broken the laws.

ILLEGAL

Amended laws in 2003 had taken the power out of the hands of ministers and officials to grant waivers on vehicles. This was after a major racket was uncovered in the early 2000s, involving high end vehicles, in which the state lost hundreds of millions of dollars in taxes.

The law change made it very clear under what conditions persons are eligible.

GRA was only supposed to, as the country’s premier tax collection agency, execute what the law stipulated. It does not have power to grant waivers.

In any case, even if GRA could make a case for flexibility, Wills would have still, under the law, been obligated to pay the necessary taxes and duties.

Vehicles over 2000cc and up to 3000cc attract taxes and duties of more than $6M, Kaieteur News was told – far above what Wills was paying.

GRA disclosed last week that Wills was sent on his annual leave.

The entity, which has been dogged in the past with serious allegations of corruption, has not issued a statement on whether an investigation is ongoing.

The attempts last month to change the transaction would amount to tampering and strongly suggest the possibilities of senior GRA officials being involved, Kaieteur News was told.

It would also raise questions about the integrity of GRA’s database.

It was pointed out that if someone with access can make and enter entries at will, then it would not be too far out to think that maybe taxpayers’ information, including Customs entries, could be manipulated at will.

“This is a frightening situation. GRA’s systems are supposed to have several layers of protection. It was designed to ensure situations like this do not occur. But if there is a suggestion that persons high up are involved, then that is frightening,” a former senior official of GRA said.

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