GRA still having problems with non compliant logging companies

Oct 10, 2017 News

The Guyana Revenue Authority (GRA) is still struggling to make certain logging companies tax compliant. For one, BaiShanLin Forest Development Inc. is yet to pay off the $1.6B it owes. Another, logging company, Vaitarna is also non compliant.
A source from GRA told this newspaper that Vaitarna breached certain parts of its agreement and has been given some time to remedy it. The source said that BaiShanLin has been given time as well.
“We have seized their equipment and they are trying to work out a plan to get back into business if they finish quickly.”
The source said that GRA has completely cancelled BaiShanLin’s investment agreement. It was further stated that all the money has to be paid off before any of the equipment that was seized can be given back to BaiShanLin.
China Development Bank (CDB) has intervened and met with GRA, along with the Director of BaiShanLin, Chu Hongbo. A commitment has been given for the company to clear its debt very soon.
This is not the first intervention of the CDB. The Ministry of Natural Resources had announced that the CDB asked Guyana not to give out lands once held by BaiShanLin.
In addition to the equipment, GRA seized two luxury vehicles from BaiShanLin. The vehicles were given back.
BaiShanLin had persistently defaulted on the investment agreement it had signed with the PPP/C Government to establish a wood processing plant at Linden. Instead, it bought five logging companies and had been involved in the wholesale exportation of logs with impunity at a time when most tropical timber-producing countries have either banned log exports or have severely restricted their exportation.
The investment agreement specifically states that if the machinery, equipment and materials for which fiscal concessions have been granted have not been used for the purpose(s) specified, the value of the concessions must be repaid to the Government.
During the period 2012-2015, Baishanlin brought in US$38 million worth of machinery, equipment and materials, of which fiscal concessions amounting to G$1.8 billion were granted.
This was based on investment agreements entered into between the Government of Guyana and Baishanlin for the construction of a wood processing facility in Region 10.
The total value of concessions granted amounted to $1.827 billion. GRA indicated that it was unable to provide information relating to the earlier years because of computer problems.
A review of the list of items of machinery, equipment and construction materials for which fiscal concessions were granted, indicated that many of the items were either unrelated to, or were significantly in excess of, the requirements for the construction of wood processing facility.

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