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Self-employed persons continue to default on taxes
Review of 2017 Audit report…
Kaieteur News – The contribution of taxes from the self-employed does not seem to represent what can be considered fair and this is reflected in the Auditor General 2017 report.
GRA Commissioner General, Godfrey Statia.
According to the report, over the years, the Guyana Revenue Authority (GRA) has experienced difficulties in having delinquent self-employed persons comply with the requirements of the Income Tax Act. As at 31 December 2017, there were 105,522 active registered self-employed persons in the revenue database of which only 18,351 persons or 17% of the active registrants filed returns.
Nevertheless, the report said the total income tax collected from self-employed taxpayers for the period January to December 2017 amounted to $4.9 billion. In the report, Head of the Authority, Godfrey Statia had acknowledged the issue. In light of the number of self-employed taxpayers not filing returns and the limited resources at the disposal of GRA, Statia noted that the Authority has adopted a risk management approach to prioritise the high risk taxpayers with great revenue implications.
He noted that the Guyana Revenue Authority issues demand notices to defaulting self-employed taxpayers on a continuous basis and in addition, raises assessments in the absence of the returns. According to GRA boss, the number of demands notices issued during 2017 amounted to 31,091 and 22,031 in 2018. In addition, two cases were referred for legal action to be taken for failure to submit tax returns. The Audit Office had recommended that the Authority pursue more forcefully all possible avenues to have delinquent self-employed persons comply with the requirements of the Income Tax Act with a view of maximising revenue collections.
The country’s tax system allows for self-assessment and voluntary compliance and it is estimated that 98 percent of all taxes collected by the Authority is through voluntary compliance. Though not its only role, Statia has said in a previous statement that it is important for the taxpaying public to view taxation as an investment in one’s country and its development and progress. Taxes, he said, must be seen as a social contract between the taxpayer, the government and the Authority.
“The Authority only administers the laws. Its mission is to promote compliance with Guyana’s tax, trade and border laws and regulations through education, quality of service and responsible enforcement, thereby contributing to the economic and social well-being of the people of Guyana,” said Statia. According to the Tax Boss, the GRA’s goal is to provide the best possible service at an affordable cost, be fair and respectful to the tax-paying public, manage its resources effectively and economically and be responsive and committed to the improvement of its service.
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