Latest update November 21st, 2024 1:00 AM
AG Nandlall may have found “magic formula” for Guyana to bypass $276B in tax payments for Exxon & partners – Chris Ram
“Law supersedes contract”
…But he still has 10 outstanding questions to answer
Kaieteur News – Attorney General and Minister of Legal Affairs, Anil Nandlall may have found a “magic formula” that helps Guyana circumvent the onerous tax obligations of the Stabroek Block Production Sharing Agreement (PSA).
Making this contention was Chartered Accountant and Attorney-at-Law, Christopher Ram in a letter to Kaieteur News. Ram had written in a Stabroek News column that the Natural Resource Fund (NRF) is holding over $276B which belongs to the Guyana Revenue Authority to cover the tax obligations of ExxonMobil and its partners. Guyana is required to hand over this money to GRA so that the tax agency can properly issue certificates of payment to the oil companies. To reiterate, what binds Guyana to this chain of events is the Stabroek Block PSA.
AG Nandlall has since informed the nation via a statement on his Facebook Page that the NRF Law does not permit any such withdrawals for GRA. Doing so would be against the law and could even attract jail time. Nandlall even noted that the contract is superseded by the NRF law. The AG also noted that the fact of the matter is that the NRF revenues are held in a government account, known to all and sundry and transfers are in any case made to the Consolidated Fund when appropriated by the National Assembly.
In keeping with such an argument, Ram said the AG may have offered Guyanese the best news for the year. In the absence of those payments going to GRA, it is impractical that GRA can still issue the certificates properly to the oil companies. On this premise, Ram said the AG has essentially shown Guyanese that the onerous tax provisions of the Stabroek Block deal can indeed be circumvented. In other words, the AG has found a way for Guyana to bypass paying GRA the outstanding $276 Billion in taxes for Exxon and its partners.
“If his statements represent the Government’s position, it is the best news for the country at the beginning of a new year. It also portends that Guyana can settle other concerns about the environment, insurance, level of royalty and allocation of profits in the Agreement without adverse implications,” said Ram.
For further clarity on Nandlall’s position, Ram also posed 10 key questions for the AG to answer. Those questions are as follows:
- Does his statement on his Facebook page represent his and the Government’s official position, or was it personal and unofficial?
- Did he or the subject Minister, at any time since the passage of the NRF in 2021, have any discussion with Exxon, Hess and CNOOC on his interpretation of the implications and consequences for the Agreement?
- Were his interpretation and its consequences accepted by the oil companies?
- Was there a resolution in accordance with Article 32 (3) and how was that resolution formalised?
- Since he does not agree with my interpretation of Article 15 (4) (b) of the Agreement regarding Government’s obligation to pay the tax out of its share of profit oil, can he say what the correct interpretation is?
- By virtue of section 45 of the NRF Act to which he accords supremacy status, is Guyana now relieved of the obligation to pay the taxes of the oil companies?
- Would he be kind enough to provide a schedule, with particulars, of the Certificates of Taxes issued by the Guyana Revenue Authority under Article 15 of the Agreement?
- What was the source of the money used to pay such taxes for the oil companies?
- If no Certificates of Taxes were issued, were there any other receipts, acknowledgments, documents or confirmation from the GRA to the oil companies of taxes paid on their behalf?
- Given Anil’s assertion that the Agreement is overtaken by legislative changes, does he consider that further changes are within the exclusive powers of the Government, without restoration of benefits?
- Anil Nandlall, Attorney General and Minister of Legal Affairs, Chartered Accountant and Attorney-at-Law, Christopher Ram, Natural Resource Fund (NRF)
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