The High Court today granted several orders quashing the Guyana Revenue Authority’s (GRA’s) imposition of taxes totaling more than $800 million against Hana and Bibi Mohamed over the import and use of two luxury vehicles, after it found that the Tax Authority did not act lawfully in the handling of the matters involving the two re-migrants.

In March 2025, the Guyana Revenue Authority accused Hana Mohamed of breaching the conditions of the Tax Exemptions granted for the importation of a Ferrari motor car. The GRA contended that Hana Mohamed – the sister of the Leader of the Opposition Azruddin Mohamed – failed to reside in Guyana for the mandatory period of at least 183 days annually during the concession period. It later moved to impose more that $400 million in taxes against her.

But today, Justice Gino Persaud ruled that the Commissioner General failed to lawfully consider and apply his discretion in regards to the reasons proffered by Hana Mohamed with regards to her temporary absence from Guyana. The Judge said the actions of the Commissioner General of GRA were “unreasonable, arbitrary, irrational, unfair, and unlawful.”

 The Court therefore granted an order quashing the Tax Authority’s imposition of taxes in the sum of $479.7 million in respect of Hana Mohamed’s use of a 2020 Ferrari motor vehicle. It also granted another order quashing GRA’s requirement for Hana Mohamed to surrender the vehicle to the Law Enforcement Division of the Revenue Authority. A permanent injunction was also granted retraining GRA from seizing the Ferrari.

In the case of Bibi Mohamed, the Court ruled that the requirement set out by GRA that a 2023 Rolls Royce vehicle, which was imported by her under the re-migrant scheme, ought to have been used solely by her as her primary mode of transportation, was unlawful.

Justice Persaud ruled that the requirement for Bibi Mohamed to report in person to the Tax Authority every six months was also unlawful.

In Bibi Mohamed’s case, an order was also granted quashing the imposition of taxes by GRA to the tune of approximately $320 million. He also ordered permanent injunction preventing GRA from seizing the vehicle from her.

Attorney-at-Law Siand Dhurjon, who appeared in the case on behalf of the Mohameds alongside Attorney Damien DaSilva, told reporters that he was pleased with the ruling.

“We all know the events that unfolded last year, when GRA officers and police officers arrived at the house of Azruddin Mohamed in the droves to seize those vehicles, and injunctions were subsequently gotten and here and now today, the High Court, Justice Persaud has ruled that those attempts at seizures were unlawful. The imposition of the taxes by the GRA was also unlawful and the Court was clear that the GRA was really not fair to Hana Mohamed in that she had good reasons for what they were claiming was her breaching the tax laws, and the GRA stated that they had no discretion whatsoever to listen to her, they were duty bound to impose these taxes but the Court said no, they have to listen to her, they have to consider any reasonable explanation she might have assert,” Dhurjon said.

He said importantly, the Court flagged certain conditions and requirements as set by the Tax Authority as unlawful.

In the case involving Bibi Mohamed, the Court ruled that the six-month reporting requirement set out by GRA “is not authorized by the Customs Act,” and was therefore “arbitrary, unfair, unreasonable, irrational, unlawful and ultra vires the Customs Act.”

“Two of the conditions that the GRA has, of recent has been imposing on vehicles, which have been granted remigrant duty free concessions, two of those conditions have been illegal all the while because they have not been sanctioned under law. The Judge explained that the GRA could not require a remigrant to report every six months to the GRA with their vehicle for inspection and with their vehicle documents, that is a condition unknown to law…The Court also made clear that the GRA could not impose a condition that a vehicle must be used exclusively by a remigrant as their primary mode of transportation. That again is a stranger to the law and it has no statutory underpinning,” he said.

According to the Attorney, the decision is a “damaging one” to the GRA, adding that permanent injunctions against GRA were granted in both cases.

In light of his decision, Justice Persaud sent the matter back to the Commissioner General for reconsideration in accordance with the Law. He said the GRA must fairly consider the reasons provided by Hana Mohamed for her temporary absences from Guyana.

Justice Persaud said the GRA must also consider Hana Mohamed’s reasons for non-compliance, afford her the opportunity to be heard with reasonable opportunity to make any further written representation, and take into account all legally relevant matters.

The Judge said nothing in his ruling compels GRA to decide the matter in favor of the applicant. Noting that the Commissioner General remains the primary decision maker, the Court maintained that he must exercise his powers lawfully, fairly, and rationally in accordance with the orders of the Court.

The GRA was ordered to pay the respondents a total of $1.5 million in cost.

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