GRA board clamps down on applications for PIDs

Jun 10, 2017 News

A loophole in the systems at the Guyana Revenue Authority (GRA) that allowed persons to ship in valuable items and collect it immediately without the necessary paperwork being completed is being closely monitored.

GRA’s chairman, Rawle Lucas

On Thursday, Chairman of the Governing Board of Directors, Rawle Lucas, made it clear that the system, known as Permission For Immediate Delivery (PID), has been brought under control.
As a matter of fact, during a press conference hosted by GRA at its Camp Street headquarters, the chairman said that the board has taken on the responsibility of paying close attention.
A recent case has raised questions over the attention being paid by GRA to the issue.
Under previous arrangements, Customs used to allow the immediate delivery of perishables, medicines, and even equipment and parts, which were deemed emergency in nature.
However, over time, there was evidence that the discretionary system was being abused.
Persons took the opportunity to bring in high-end vehicles, heavy duty equipment and even excavators, which would never have been considered in normal circumstances.
The files were never closed and GRA lost out on billions of dollars in taxes over time.
In fact, state auditors were alarmed at what was clearly a loophole.
Lucas said that the board has been monitoring the situation and was satisfied that actions to “perfect” the PIDs were being done expeditiously.
With some equipment disappearing into the ‘bush’ and in many cases the items sold, it was a difficult few years for the GRA to force the importers to submit the necessary documents to close the files.
The matter of PIDs had even come up in Parliament’s Public Accounts Committee (PAC), which examines spending of state agencies and ministries, with a view of ensuring procedures are followed.
As far back as 2010, GRA had explained that some of the outstanding transactions were from the ministries and agencies, and it was found that mining companies and other businesses were just as guilty.
In PAC’s examinations in 2010, the outstanding PIDs related to transactions that were in excess of $2B. These figures related to spending in 2005 and 2006. There were questions asked whether persons who violated the PIDs were allowed to benefit from more.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News