Defaulting taxpayers make their first court appearance

– as GRA introduces stricter penalties for tax cheats

Guyana Revenue Authority (GRA) Commissioner General Khurshid Sattaur
Guyana Revenue Authority (GRA) Commissioner General Khurshid Sattaur

Several persons sued by the City Council for nonpayment of rates and taxes made their first court appearance on Tuesday at the Georgetown Magistrates’ Courts before Magistrate Faith McGusty.

Dr Jennifer Basdeo- Green, wife of Georgetown Mayor Hamilton Green is being sued for Gy$10,145,631 for nonpayment of rates and taxes for the period of 1997-2013.

Green was represented in court by Attorney Robert Corbin who wrote the court asking to be excused. Her matter is adjourned to November 18.

Rajpati Latchmansingh also known as Sandra Singh owes the City Council Gy$9,244,124 and was ordered by the court to pay the sum. Former Deputy Mayor George Sebastian was represented in court by great-granddaughter Mary Hernandez who asked the court for some time to secure representation, while the matter of Garland Lodge who owes the City Council Gy$2,491,217 was transferred to today where it will be heard in Court Eight at the Georgetown Magistrates’ Courts.

The matters were filed by former GGG City Councillor and Executive Member, Attorney Euclin Gomes.

Penalties

Guyana Revenue Authority (GRA) Commissioner General Khurshid Sattaur said that the organisation will be taking stronger action over the next few weeks against tax evaders and defaulters.

Sattaur told Guyana Times International recently that this will ensure that the GRA retrieves the millions of dollars owed in taxes. The revenue boss lamented that these tax defaulters have access to prominent lawyers and they are challenging the judgments, despite owing government millions of dollars in taxes. The revenue body has been battling to get taxes owed by many companies, particularly Value Added Tax (VAT) and Pay as You Earn (PAYE).

“We have, therefore, taken a position on some of these companies, to go after the taxes by way of levy proceedings and if we cannot get it by levy proceedings, we will move to close these companies down. To avoid them having further liability for the taxes,” Sattaur added.

He, however, noted that there were some cases where the tax defaulters would agree to make payment by instalments, following a court ruling.

Stern stance

He said, “There are other cases we are still pursing and are collecting taxes in ways of instalment having had a pronouncement. But this is not the same for the companies I have mentioned which owe Gy$7 million and more to the state.”

According to him, one business in particular has formed another company to carry out similar business and has moved to the extent of engaging its clients. He finds the situation “ridiculous”, stressing that it must come to an end soon.

The GRA recently obtained several judgments against defaulting taxpayers for outstanding taxes. The debtors include: COPS Guyana Limited, Guyana Stores Limited, and Didco Trading Co. These companies owe millions of dollars in taxes. Already, the GRA has instituted winding-up proceedings against COPS Guyana Ltd, Didco Trading Co, and Friendship Hotel and Restaurant Holdings Inc.

Sattaur reiterated that non-compliance with court orders will not be tolerated and all outstanding judgments will be vigorously pursued by way of levy. The GRA, he said, remains committed to collecting the state’s revenue and will take all necessary steps to ensure that defaulting taxpayers comply with orders of the court.

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