The Guyana Revenue Authority has warned that it will not allow the abuse of duty-free concessions by persons and some auto dealers who are bent on robbing the state of duty for the importation of high-end luxury vehicles.

In a statement, the GRA said while it notes the recent ruling of the Chief Justice surrounding the question of duty-free and how taxes must be applied, it must 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 of the concession by some persons who may have been granted remigrant status by the Ministry of Foreign Affairs.

The GRA explained that in keeping with policy, re-migrants are allowed a vehicle for their own use, subject to various conditions stipulated in the law. The concession, the authority said, is depending on the engine size of the vehicle and allows re-migrants to pay significantly reduced taxes on vehicle imports, that is, 10%, 20%, or 30% excise tax, depending on its engine capacity.

It explained that a normal taxpayer importing or buying an unlimited engine size, high-end vehicle usually pay in excess of $44 million in taxes, versus a maximum of $6M that a purported re-migrant would incur for the same vehicle. 

GRA said the situation has allowed for unscrupulous person(s), including some auto dealers, seeking to utilize the system, by enticing potential re-migrants for monetary gain, to travel to Guyana, apply for the re-migrant status, import a high-end vehicle, then leave the jurisdiction.

The revenue agency said even more alarming is that many of the applicants have little or no financial means, or even a bank account in their country of origin, and in some cases, they do not even possess a driver’s licence in the foreign jurisdiction.

The GRA said the practice has become so widespread that it has even seen employees of certain exempt organisations and even public servants being involved in the said activity, hence it has resorted to the “he who asserts must prove” principle, by requesting the source(s) of funds used in the acquisition of the said high-end vehicle.

The GRA said because of the far-reaching implications this practice could have; it will move to appeal the ruling of the Chief Justice in order to bring some semblance and uniformity to the process.

“The Revenue Authority is in the process of appealing the decision, considering the huge tax implications to the State and its obligations under the various administered Acts. The Authority will also explore all options at its disposal to ensure the system is not abused and to protect the nation’s revenue. Persons who seek to abuse the system with intent to defraud or to aid, assist, abet, counsel, or induce such abuse may be guilty of an offence and liable to fines and/or imprisonment in accordance with relevant sections of the Customs Act Chapter 82:01, the Income Tax Act, Chapter 81:01 and all relevant legislation administered by the Authority,” the GRA said.

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