GRA flags remigrant vehicle scam 

Dec 13, 2024 News

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…says persons acting as fronts for auto dealers, others to import high-end vehicles

Kaieteur News- The Guyana Revenue Authority (GRA) has raised alarm over the abuse of the duty-free system in place for re-migrants to import vehicles, noting that in some cases the persons who apply for the concessions are working as fronts for auto dealers.

This disclosure comes on the heels of a ruling by the Chief Justice Roxane George-Wiltshire that the revenue body acted unlawfully by questioning the source of funds used by remigrant Reaz Manjoor to purchase a vehicle – and ordered the release of his Toyota Landcruiser.

In a press statement, on Thursday, GRA said, “While GRA is respectful of and will abide with the ruling of the Honourable Chief Justice, the Authority wishes to clarify its actions in keeping with the intent of the measures surrounding imports of high-end luxury vehicles by some re-migrants, and the abuse to the concession by some unscrupulous persons who may have been granted such a status by the Ministry of Foreign Affairs.”

Firstly, it was explained that re-migrants are allowed a vehicle for their own use, subject to various conditions stipulated in the law. Under current policy, re-migrants are allowed to import a vehicle for personal use at significantly reduced excise tax rates—10%, 20%, or 30% depending on the engine capacity. In contrast, a non-remigrant importing a high-end vehicle could face over $44 million in taxes, compared to a maximum of $6 million for a remigrant. This significant disparity has created opportunities for exploitation.

GRA said that “unscrupulous individuals”, including auto dealers, are enticing potential re-migrants to apply for the concession in exchange for monetary rewards. These re-migrants, often with minimal financial means or ties to Guyana, are encouraged to secure high-end vehicles before leaving the country. Alarmingly, some applicants lack basic qualifications such as a driver’s licence, a bank account, or a history of filing tax returns in their country of origin.

The Authority said that, “When their (re-migrants) documents are submitted and analysed, they often show little or no funds for years, but prior to or after the receipt of the approval, large and sudden cash injections into their just opened bank account, local or foreign, and from unknown persons and benefactors, who are nowhere to be found or refuse collaboration, of the deposit (as was in this case), all with the intention of facilitating the purchase of high-end vehicles. The vehicles are then utilized or purchased by ineligible persons, through the process of powers of Attorney, or possession, resulting in tens of millions revenue losses to the State.”

Further, it was disclosed that the practice is becoming so prevalent that GRA has seen instances where employees of treaty-exempt organizations and public servants are implicated in these schemes. In response, the Authority has implemented stricter measures, including requiring applicants to provide proof of the source of funds used for vehicle purchases; this is called the “he who asserts must prove” principle.

Notably, this is in line with Guyana’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws, which mandate rigorous compliance and information sharing with several jurisdictions.

In a plea to the public, the GRA urged citizens to report any information on system abuses via its confidential hotline 227-6060 or extensions 3201, 3204, 3205, 3206, 3211, 3212, or 3408. Informants may be eligible for rewards under the provisions of the Customs Act. This crackdown aims to preserve the integrity of the duty-free vehicle facility, ensuring it benefits genuine re-migrants while safeguarding state revenue.

Moreover, the GRA has announced its intention to appeal the recent court ruling, citing the severe tax implications and its obligations under various legislative acts. It also emphasized that individuals found guilty of abusing the system or aiding others in fraudulent activities could face fines and imprisonment under the Customs Act and other relevant laws.

This publication had reported that Manjoor returned to Guyana in August 2023 after spending over 10 years in the United States. Seeking new opportunities in his home country, he applied to the Ministry of Foreign Affairs, where Minister Hugh Todd granted him remigrant status on 23rd August 2023. Minister Todd had informed Mr. Godfrey Statia, the head of the Guyana Revenue Authority, of this decision.

The Chief Justice quashed the GRA’s demand for further financial information and ordered the immediate release of Manjoor’s Toyota Landcruiser, which had been held at the port since January 2024. This is according to a press release from attorney Siand Dhurjon.

(GRA flags remigrant vehicle scam )

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• abuse, auto dealers, GRA, remigrant, Roxane George

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