Still to come on stream... Lethem Audit Unit has its work cut out

Still to come on stream… Lethem Audit Unit has its work cut out

Mar 12, 2019 News

As part of an overall vision to squeeze the rightful tax belonging to the nation out of all entrepreneurs, the Guyana Revenue Authority (GRA) is looking to get a handle on the town of Lethem.
This newspaper understands that along with other initiatives, GRA will soon be establishing an Audit Unit at its Lethem branch.
But this newspaper is of the fair and legitimate understanding that that audit unit will have its work cut out for it.
A lot needs to be regularized in Lethem. As was recently published, the entrepreneurs operating there—mainly Chinese nationals—are paying little or no taxes.
Value Added Taxes are not paid. In fact, the businesses up there are not even registered. Many of the stores are said to be “subsidiaries” of commercial establishments in Georgetown and have ‘temporary’ licences.
Therefore, when goods are being transported to Lethem from Georgetown, no taxes are paid as it is assumed that relevant taxes were paid in Georgetown.
Further, contributions are not being made to the National Insurance Scheme (NIS) on behalf of those locals working as sales representatives in the stores.
A GRA official recently told Kaieteur News, “Very soon there will be an audit unit here so we can deal with things specifically.”
The Official said that there are already a few things identified to be checked upon.
“There are a few things that we know will have to be examined off the bat. Some of the big businesses are bringing in goods that may not be handled right. There is a suspicion that even though they are benefitting they are still trying to do underhand transactions.
“Therefore, I am told that we are going to do some comprehensive checks. For example, you bring 10 cases here, do you have bills to substantiate that the 10 cases were sold in Lethem.”
Funnily, this newspaper knows that from that example given, the audit team will have an uphill task.
When this newspaper visited Lethem recently, items were purchased from a few of the Chinese stores. In all instances, without exception, money was collected, product was handed over but no bill was given.
There were not even cash registers.
Therefore, it is unclear what will be audited.

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