Govt. captures US$40B in taxes from oil sector due to loopholes in Guyana’s laws

Dec 09, 2019 News

Major loopholes in various tax laws are causing Guyana to lose millions of dollars in revenue, says Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia.
But the authority has been able to prevent the loss of approximately $6 to $8 billion by employing certain aspects of international law and best practices.
The Commissioner General made this disclosure during a recent appearance on Kaieteur Radio’s show, Guyana’s Oil and You.
Statia said, “Amendments to many of these Acts are in the pipeline and we are awaiting the reconvening of Parliament. But I would be the first to admit that many loopholes exist not just with Customs but the Income, Corporation and Value Added Tax (VAT) Acts, hence the need for amendments and the introduction of new legislation.”
The Commissioner General added, “In the meantime, we have had to rely on certain aspects of international law, best practices and resort to sometimes, non-approval of future Field Development Plans should parties not honour their commitments as required, until compliance is attained.”
He further noted that there have been several instances where schemes are concocted by companies in the oil sector to avoid paying taxes. Statia said that to his dismay, some of the local accountants are helping these companies in this practice. He noted nonetheless, “You can’t blame the contractors for trying to take advantage but GRA has to be vigilant and, we will be.”

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