Latest update November 21st, 2024 1:00 AM
Govt. to amend Income Tax Act to prevent oil companies from rotating foreign workers to evade taxes – Jagdeo
Vice President, Bharrat Jagdeo. (Govt. to amend Income Tax Act to prevent oil companies from rotating foreign workers to evade taxes )
Kaieteur News- The government of Guyana intends to amend the Income Tax Act to address tax evasion tactics by oil companies. Kaieteur News understands that oil companies have been rotating foreign workers in a bid to evade tax obligations.
Vice President Bharrat Jagdeo made the announcement on Wednesday at his weekly press conference held at the Freedom House, Robb Street, Georgetown.
At the press conference, Jagdeo was asked for an update on the amendments to the Local Content Act of 2021. Since the law was enacted, several loopholes were observed and concerns raised. The government has since promised that the amendments will be made and according to Jagdeo, “it will happen probably next year.”
The Vice President said too, “I’ve seen evidence that is available to the local content Secretariat, where they have a long list of workers who are rotating workers, and a lot of them are in management.”
He said this is a means of tax evasion.
Jagdeo said according to Guyana’s Income Tax Act, a foreigner working in Guyana has to be resident for six months before they are required to pay income tax.
“So, they’re bringing in rotating workers, long list of them, foreigners. They’re getting work permits for them, and we believe they’re doing it for two purposes, one, to bypass the Income Tax Act. … So, they’re rotating them in for six months and then sending them off. So, they’re bypassing the taxation of those individuals, their eligibility for taxation,” Jagdeo said.
The Vice President further indicated that the government is working with the Guyana Revenue Authority (GRA) to draft legislation to close this loophole.
(Govt. to amend Income Tax Act to prevent oil companies from rotating foreign workers to evade taxes)
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