Latest update February 10th, 2025 7:48 AM
Customs Officers, major oil importers resisted measures to reduce abuse of tax exemption letters – GRA Boss
GRA’s Commissioner General, Godfrey Statia.00
Kaieteur News – After its initial investigations found that the nation’s major oil importers — SOL Guyana Inc., Rubis, and GUYOIL—were abusing their tax exemption letters, the Guyana Revenue Authority (GRA) sought to implement measures that would bring an end to this dreadful state of affairs.
But instead of cooperation to ensure greater transparency and accountability, the tax authority saw great resistance from not only the oil importers but even its Customs Officers too.
This was detailed in a letter seen by Kaieteur News from GRA’s Commissioner General, Godfrey Statia, to President, Dr. Irfaan Ali; Attorney General and Minister of Legal Affairs, Anil Nandlall; and Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh.
In that document, Statia noted that the major oil importers were habitually abusing tax exemption letters, which allowed them to import fuel at duty free rates but with the understanding that it was only going to certain beneficiaries. The tax exemption letters also allowed the importers to have access to GRA’s Permission for Immediate Delivery (PID) system. GRA’s probe later found that companies were bringing fuel into the country under the guise that it was intended for certain companies but when a reconciliation of the books was done, millions of dollars worth of fuel were never delivered.
GRA sought to tighten this system by proposing that with each payment and the clearing of a PID, a computation must be attached showing Imports, Exemptions vs. Acquittals for each import, along with the importer submitting a monthly schedule detailing similar information, but advising on who are the beneficiaries.
It was proposed that thereafter, GRA’s Law Enforcement Unit would utilize the monthly submissions and reconcile same with the beneficiaries, thereby allowing for timely and easier reconciliation and payment.
In his letter, Statia said, “Suffice to say that notwithstanding the agreement reached regarding the aforementioned process, the oil importers expressed reservations and gave every reason as to why this new requirement should not be thrusted upon them (for obvious reasons). There was also pushback by Customs officers who for one reason or another, did not see the need or understood the rationality for the change, or resisted the changes for their own gain. This led to a piecemeal approach and the eventual return to the old system…”
Over the weekend, Kaieteur News and other media outlets had exposed the extent of the abusive behaviour of oil importers regarding the tax exemption letters.
In the case of the Guyana Gold and Diamond Miners Association (GGDMA), $482M worth of fuel was not delivered by SOL, along with $53M for Aurora, and $61M for Rusal.
In late 2020/early 2021, it was noted that ExxonMobil was also a beneficiary. In this regard, GRA said that evidence so far reveals that as early of 2015, the system was being abused by SOL Inc., whereby exemption letters were utilized to clear fuel while the full quantity was not delivered to Exxon. With the exception of Exxon, which is now awaiting final decision on $2.6B cleared and not delivered, all amounts have been paid, the tax body said.
Taking the foregoing into consideration, along with other damning findings, the tax body wants to examine ways of having SOL prosecuted and the relevant taxes and interests recovered in light of the abuses committed.
GRA believes that the Attorney General should have a say on the way forward too.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Forward to the past
Peeping Tom… Kaieteur News-Guyana’s debt profile, both foreign and domestic, has become a focal point of economic... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
