GRA must say why only now it is going after Mohameds for $900M in taxes-Jagdeo

Mar 21, 2025 News

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…says due process must be followed, can’t confiscate vehicles ‘just like that’

Kaieteur News- Vice President Bharrat Jagdeo has stated that the Guyana Revenue Authority (GRA) must provide explanations regarding concerns raised over its pursuit of over $900 million in taxes for high-end vehicles, owned by businessman, Azruddin Mohamed, nearly five years after they arrived in the country.

Jagdeo made the statement during his press conference on Thursday, in response to claims by the Mohameds that the vehicles came into the country four years ago and only now GRA is trying to conclude the transactions.

Nazar “Shell” Mohamed had suggested that the Vice President was behind GRA’s demand for taxes, totaling $900,801,201, for four vehicles. However, Jagdeo, last week, clarified that it was Azruddin Mohamed’s own social media post about his tax contributions that initially caught the GRA’s attention.

On Thursday, social media commentator, Mikhail Rodrigues, also known as “Guyanese Critic,” raised concerns that the Mohameds had allegedly corrupted GRA officials, and questioned Jagdeo on his confidence in the agency’s integrity in handling the matter and going after the Mohameds for the taxes.

“I have not seen anyone accusing the GRA of corruption in this matter. Now, clearly the GRA has to give explanations on some of these issues…” Jagdeo responded.

He also addressed claims made by the Mohameds, that the vehicles in question had been in the country for four years and that GRA was only now seeking to finalize the transactions. “Now, this is not entirely accurate…three of the vehicles came in through the remigrant scheme, and those vehicles, if properly assessed, would be liable for taxes that exceed $900 million,” he said.

Jagdeo reiterated that the issue only came to GRA’s attention after a social media post was made. “So, I have not seen any allegations that the GRA corruptly took money or anything like that. But, you may question the length of time it took on a couple of the vehicles, which is a fair question, and maybe you should ask the GRA about that,” the Vice President stated.

Guyanese Critic then questioned whether GRA’s 14-day response window for the Mohameds was the tax body giving preferential treatment, stating, “If it were any other Guyanese, the vehicles would have already been in GRA’s bond. Do you trust GRA’s process?”

Jagdeo responded, “GRA has to go through a proper process, this is not a cake shop agency.” He further noted that GRA is an independent revenue authority and not a political arm of the government.

“What if one of the remigrants can prove that they actually lived here the 183 days per year in the last two years (in accordance to the law), then that would mean that the information available to the GRA might be false, and they don’t have to worry about paying the taxes because they would have met the condition,” Jagdeo explained.

“You have to give taxpayers a period, and they got 14 days to respond to the allegation. It’s natural justice. You can’t just go and pick up the people’s vehicle the same day without giving them that right to respond,” he added.

Jagdeo maintained that due process must be followed and that the GRA’s decision to allow the Mohameds time to respond was part of a fair legal procedure.

In separate letters dated March 4, 2025, GRA’s Law Enforcement and Investigation Division outlined the findings and financial obligations for the owners of a 2021 Toyota Land Cruiser, a 2020 Lamborghini Roadster, and a 2020 Ferrari 488.

According to GRA, the declared values of two Toyota Land Cruisers—PAB 3000 and PAB 4000—were found to be inconsistent with similar vehicles. Consequently, the values were adjusted, and the owners were notified that each vehicle now carries an additional tax liability of $24,641,272.

In another case, a 2020 Lamborghini Roadster, with registration PZZ 4000, was also found to have an undervalued declaration. GRA has now adjusted its value and imposed additional taxes amounting to $371,775,168.

Additionally, GRA said that it launched an investigation into a tax-exempted Ferrari 488 owned by a re-migrant. The authority found that the owner failed to meet the required residency period, did not present the vehicle for periodic checks, and was not using it as intended under the terms of the exemption. As a result, GRA is demanding the repayment of $479,743,489 in foregone taxes.

“As a result, you are required to show cause why the Revenue Authority should not demand the foregone Customs Duty and Taxes,” one of the letters stated.

Notably, the Mohameds’ lawyer has already made contact with the GRA.

(GRA must say why only now it is going after Mohameds for $900M in taxes-Jagdeo)

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• Mohameds, taxes, vehicles, Vice President

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