CONCESSIONS GALORE!!!! Guyana loses $42B in tax breaks to foreign gold company, gets $5B in royalties

May 17, 2018 News

Chartered Accountant, Christopher Ram

By Kiana Wilburg
Would you give away $100,000 on a monthly basis from your bank account, only to receive less than $10,000 in profits? Of course not! But this is the kind of lunacy that characterizes the relationship Guyana has with foreign gold mining companies.
For the last five years, local authorities have been sleeping at the wheel while the country bleeds billions of dollars worth in tax concessions. In fact, Canadian miner, Guyana Goldfields Inc. is one of the large entities which received concessions galore.
Since the first gold bar in 2014, Guyana Goldfields Inc. (GGI) has benefitted from $42.2B in concessions. The company received $17.8B in concessions on fuel, lube oil and other lubricants and chemicals.

GRA Commissioner General, Godfrey Statia

The company was granted $14B in tax breaks on machinery and equipment. These include excavators, bulldozers, motor graders, caterpillar trucks, generators, front-end loaders, etc. It also received a whopping $10.6B in tax concessions on spare parts.
These figures were provided to Kaieteur News by the Guyana Revenue Authority (GRA).

Up to November 2017, the State only received $5.4B in royalties from this foreign mining company.
Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia; Chartered Accountant Christopher Ram and Executive Member of the Working People’s Alliance (WPA), Dr. David Hinds recently agreed that Guyana is not

WPA Executive Member, Dr. David Hinds

getting value for its concessions.
They said that this is especially when one considers the taxes lost. Ram, in particular, stated that concessions should level the playing field. He stressed that foreign companies and locals must be able to benefit from the same regime.
In agreement, Dr. Hinds asserted that while concessions should be granted, both parties—the State and company— should be able to benefit equally. He said it should not be a one-sided affair.
(At the side to this story, you will see a list of concessions granted to Guyana Gold Fields for 2017.)
To be continued…

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These are just some of the vehicles Guyana Gold Fields received billions of dollars worth in concessions