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‘Guyanese officials could be questioned by U.S Govt. over false tax receipts issued to Exxon’ – Former EPA Director
Kaieteur News – The United States (U.S) government could haul Guyanese officials in for questioning as part of a possible investigation into the ‘false’ tax receipts issued to American oil giant, ExxonMobil.
This is according to former executive director of the Environmental Protection Agency (EPA), Dr. Vincent Adams. During an Alliance For Change (AFC) press conference on Friday, the petroleum engineer raised concerns over the letter issued to Chief Executive Officer of Exxon, Darren Woods on Tuesday, which requires the company to share information on its tax practices in Guyana.
Former Executive Director of the EPA, Dr. Vincent Adams
In accordance with terms of the 2016 Production Sharing Agreement (PSA), Exxon and its partners, CNOOC and Hess (now Chevron) pay no taxes to the country. Guyana nonetheless issues a tax receipt, indicating that those obligations were met locally.
Consequently, Senators Sheldon Whitehouse, Chris Van Hollen and Jeff Merkley in a statement, said American taxpayers could be subsidising ExxonMobil’s foreign oil production in Guyana.
On Friday, Dr. Adams noted that Guyanese have been highlighting this issue for years only to be ignored by the Government of Guyana. After representatives of a non-profit organisation in the U.S, Oil and Gas Governance Network (OGGN) met with the Senators, the arrangement was immediately placed under the microscope. Dr. Adams, who is also a member of the Guyanese contingent, said Mike Persaud and Dr. Kenrick Hunte were the OGGN representatives that met with the Senators in February 2025.
Dr. Adams who functioned in the U.S Department of Energy described the matter as “very serious” which may be investigated by the Internal Revenue Service (IRS), which is responsible for taxes in the USA.
“The big issue is that of course it’s not about Guyana, it’s about what they believe to be a loophole that Exxon, even beyond the loophole is very questionable as to whether this is legal or not as to when they submit a certificate that they did not incur expenses for Exxon,” he said.
The former EPA boss noted that it is Guyana’s government that is responsible for paying taxes on behalf of Exxon. The company then presents that receipt to the US government to claim tax credits which amount to billions of US dollars.
“What the senators are saying this here is robbing the taxpayers of the United States of America,” Dr. Adams said.
According to him, “Several options could be taken by the senators within the laws of the United States and of course, I am not in that area but I am very sure they could very well be a possibility, especially with government officials who signed these receipts…(they) may have to come in to answer questions eventually, depending on where it goes in terms of the investigation.”
He could not say whether Exxon is likely to face penalties in the US for the likelihood of tax evasion.
In 2024, ExxonMobil Guyana Limited (EMGL) the operator of the Stabroek Block was granted a tax waiver by the GoG amounting to over US$1.3 billion. This is according to the company’s financials which indicate a tax expense of GY$260,155,788,763 for last year alone.
The Exxon Deal
The sweetheart deal Exxon signed in 2016 states in Article 15.1 that the contractor (ExxonMobil Guyana Limited) as well as its affiliates shall not be subjected to tax, value-added tax, excise tax, duty, fee, charge, or impost in respect of income derived from petroleum operations, property held or transactions except as specified under the agreement.
Further, Article 15.4 states that the sum equivalent to the taxes owed by the company will be paid by the minister responsible for petroleum to the Commissioner General of the GRA. The contract also allows for the issuing of a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation.
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I’ll bet, the previous APNU and the current Government didn’t foresee this
happening. Exxon must have those Tax Receipts available for the senators.
Reminds me of Lambo man got his vehicle registered by GRA, who now
turns around and sued for more tax revenue.