Govt could be taken to court over GRA’s new powers

The coalition A Partnership for National Unity/Alliance For Change (APNU/AFC) Government could very well find itself before the courts shortly, if it insists on going ahead with granting the Guyana Revenue Authority (GRA) with extended powers, namely to garnish money from the private accounts of citizens and the prevention of persons from leaving the country should they be indebted to the tax authority.

The warning was sounded by Opposition Leader Bharrat Jagdeo, when he met on Friday with members of the local media corps at his Church Street office to offer a post budget analysis.

Jagdeo told media operatives if Government is unwilling to heed the calls of the Opposition to withdraw certain proposals in the Budget, particularly as it relates to the GRA, then the People’s Progressive Party/Civic (PPP/C) will have no choice but the challenge the matter in court given the voting strength of the Government in the National Assembly which could see it approving its own budget without amendments.

Finance Minister Winston Jordan in his budget presentation on Monday last spoke to a range of measures including permitting the Revenue Authority to prevent persons from leaving the country should they be found to be indebted to the tax authority, in addition to the GRA accessing the private bank accounts of individuals in order to garnish monies it believed it is owed.

Jordan at the time said, “The provisions of section 102 of the Income Tax Act Chapter 81:01 will be revised to provide authority to the GRA to garnish funds from bank accounts held by taxpayers who have outstanding tax arrears. This provision would assist to improve compliance with demands issued by the GRA for outstanding payments.”

Challenge in court

According to Jagdeo, the matter of the garnishing of funds from taxpayers’ private bank accounts in something that the PPP/C will challenge in court if the Administration insists on moving ahead as proposed.

“There are things we can challenge,” Jagdeo said but was quick to point out that the imposition of Value Added Tax (VAT) on electricity, water, educational and medical supplies is something that the political Opposition would be unable to challenge in court since it is a policy decision that the Government will use its slim one seat majority to pursue.

Jagdeo was adamant too that the proposal by Government to remove the courts from the process is what poses the problem.

He noted too that similarly, Government’s proposal to prevent persons from leaving the country is something that could also be challenged since the proposal in itself represents a breach of a person’s constitutionally protected rights.

He was speaking to the right to freedom of movement and used the occasion to recall that Government had last year attempted to institute a similar measure on University of Guyana students that had defaulted on their loans.

According to the Opposition Leader, he was happy to see that Government did not follow through on its threat but cautioned that it was looking to institute a similar regime under its new proposal.

The Opposition Leader was adamant that Government should not really need the Opposition’s input on the budget on simple things like whether to charge VAT on education and medical supplies.

“They don’t need the PPP to tell them not to tax educational services,” Jagdeo said, as he expressed similar sentiments on the Government’s proposal to place VAT on medicines and a doctor’s visit.

Meanwhile, the Private Sector Commission (PSC) had also come out in condemnation of the Government’s proposal to garnish taxes from citizen’s private accounts as well as the prevention of persons believed to be indebted to the GRA to be prevented from leaving the country.

Accessing accounts

Expanding on the proposal to empower the GRA to access the private accounts of taxpayers, Executive Member of the PSC described it as tantamount to a violation of civil liberties.

Chairperson of the PSCs Financial and Economic Services Committee Ramesh Persaud on Thursday reminded that the GRA currently holds the power to access a taxpayer’s bank account to garnish funds it is owed but this is done through a court order. Government has proposed to remove the courts from the process.

Persaud reminded that previously, it is the court that decided on the propriety of GRA’s access to an account in addition to determining the amount to be recovered.

Under Government’s proposal, it is the GRA which will decide how much it is owed. This is dangerous, according to Persaud, who is adamant the GRA should not be able to do the work of the judiciary.

“Why is GRA dodging the judiciary, do they not have confidence in judiciary? Why is GRA not willing to go to court?” Persaud questioned.

The official was unyielding in his position “if the court is slow, fix the court. Don’t get a short cut mechanism.”