GRA could be losing $$M in Income Tax in gold sector …Gold Board GM says authority needs to do export analysis

Jul 27, 2018 News

Guyana Gold Board’s General Manager, Eondrene Thompson

In the last eight years, the Guyana Gold Board would have issued Dealer’s Licences to several individuals and entities. Some of these include: Adamantium Metals, El Dorado Trading, Osaka Resources Limited, Rong‐An Inc., Pure Diamond Incorporated, Mohamed’s Enterprise and K.A.B Investments Inc.
Records which were examined by several forensic auditors show that these dealers engage in volumes of transactions that sometimes exceed those of the Guyana Gold Board. In fact, auditors have stated that a significant portion of the exports for these dealers is done by way of purchase and sale, i.e. trading. Specifically, auditors attached to Ram and McRae Chartered Accountants have said that if one assumes this state of affairs to be correct, then those transactions would be subject to Income Tax, if trading as individuals under their natural or business names, or Corporation Tax/Minimum Corporation Tax, if trading as a company.
The auditors recommended that the Gold Board undertake an analysis of the exports of all dealers separately, identifying exports into own production and purchases. They said that each of these requires separate tax treatment and once the information is available, it should be forwarded to the Guyana Revenue Authority (GRA) for their consideration and action. In its estimation, the auditors said that this could involve hundreds of millions of dollars in taxes.
Kaieteur News recently engaged the Guyana Gold Board’s General Manager, Eondrene Thompson, on the matter. She said that while forensic audits made such a recommendation, she does not believe it is the job of the Gold Board to undertake such an analysis.
Thompson said, “Our analysis is not for tax. It is for assurance that you did this business, and it is audited, and what you have produced over the years, you are in a good position for your license to be renewed. We did not go down that road (that the forensic auditors spoke of).”
She concluded, “I think GRA should be the one doing the analysis to say that these people are sole traders and perhaps, let us see if they should be paying us taxes. I don’t think it is the Guyana Gold Board’s position (to do that)…”

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