GRA in a better position to trace offshore tax evasion-Tax Chief

Oct 08, 2017 News

Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia, has noted that with stringent measures now in place, the agency is in a better position to trace offshore tax evasion schemes.

GRA Commissioner General, Godfrey Statia

He made this, among other statements at a business luncheon that was recently held by the Guyana Manufacturing and Services Association (GMSA).
Statia noted that offshore tax evasion is a serious problem for jurisdictions all over the world. He said that on a worldwide scale, it has been found that vast amounts of money are kept offshore and go untaxed to the extent that taxpayers fail to comply with tax obligations in their home jurisdiction.
As the world becomes increasingly globalised and cross-border activities become the norm, the Commissioner General said that tax administrations have been working together to ensure that taxpayers pay the right amount of tax to the right jurisdiction.
He said that the way businesses conduct their affairs is now under worldwide scrutiny with the advent of Fair and Accurate Transactions Act (FACTA) and the Automatic Exchange of Information through the Global Forum (AEOI).
Statia said that the availability of ‘beneficial ownership’ information is at the forefront of the international agenda on tax transparency. It is a vital part of the international standards of transparency and exchange of information for tax purposes (both automatic and on request).
He said, “Tax Avoidance schemes, transfer pricing, over/under invoicing, related party transactions and beneficial ownership schemes (just to mention a few) previously practised with impunity are now scrutinized and the information shared.”
The Commissioner General said that despite having only 12 tax treaties and one tax exchange of information treaty with the USA; with the implementation of ASCUDA, the signing of the Inter Governmental Agreement allowing for reporting under Foreign Account Tax Compliance Act (FATCA).
With Guyana’s membership of the Global Forum for the exchange of Information, many loopholes will be closed or minimized.
Statia also took the opportunity to advise Guyanese businesses to be au fait with these new developments when making business decisions.
“The world has changed and we should change with it,” he concluded.