High Court Judge Gino Persaud this afternoon threw out an application by the Guyana Revenue Authority (GRA) for its latest Affidavit in Defence, which includes “proof of purchase costs” for a luxury vehicle imported by Azruddin Mohamed, to be deemed properly filed. 

In the Court document filed last evening by the GRA, the tax authority said based on an invoice which was billed to Azruddin Mohamed, the cost for the luxury sports car was US$695,000 and not US$75,300 as declared by the millionaire. But Justice Persaud ruled against such a submission, noting that his justification would be provided in writing.

However, the High Court granted an application for the tax authority’s written submission to be deemed properly filed, but with a caveat that any reference to the “Further Affidavit in Defence” be struck out and expunge from the record. The Judge said the Court will only consider the remaining portion of the written submission.

Meanwhile, Mohamed’s Attorney Siand Dhurjon told the Court that the facts in the case are clear – that more than three years ago, a Lamborghini and two Land Cruisers were imported by his client and the vehicles are his properties.

He said when the vehicles were imported, the Revenue Authority conducted extensive queries into the costs of the vehicles, and in the case of the Lamborghini, an agent of the supplier was flown into the country to stand scrutiny as it related to the cost.

Dhurjon said much to the surprise of his client, he received letters from the Deputy Commissioner of the Guyana Revenue Authority, Rajendra Singh, indicating that he had over more than US$400M in outstanding taxes. It was explained that an investigation revealed that the declared costs of the luxury vehicles brought in by Mohamed were inconsistent with the values for similar vehicles with the same specifications.

Mohamed was given 14 days to pay the additional taxes or have the vehicles seized.

His Attorney told the Court that the assessment conducted by the Revenue Authority must be set aside, and GRA must be blocked from seizing the vehicles.

“All that they have provided is a printout from a website saying that the Lamborghini, before Mr. Mohammed bought it, it was sold to a third party for a different value. Now, as inadmissible as this document might be. It is of no evidence; it is of no value. The true declaration value that counts is the transactional value,” Dhurjon told the Court.

He said the estimated costs of the vehicles are irrelevant, stressing that what is important are the causal costs of the vehicles bought by Mahomed.

He argued that the Tax Authority assessed more than US$400M in taxes by raising the values of the vehicles brought in by Mohamed higher than those values he declared.

“To this date, the GRA has been unable to state what are the values that they substituted for those Mr Azruddin made. In other words, the GRA is willfully concealing the values that they have put that they believe are the values that they have levied the taxes on,” Dhurjon argued.

He said in two submissions made to the Court by GRA; the costs included were vastly different. Added to that, he said GRA did not give his client an opportunity to defend the taxes paid, telling him to pay up or have his vehicles seized.

But Attorney for the GRA, Sanjeev Datadin, told the High Court that the Commissioner General has the power to take appropriate steps to conduct assessments of taxes paid. He said Mr. Mohamed had the opportunity to make a case for himself before the GRA and submit appropriate documentation but did not.

“He does not provide any information. He says it can’t be done. He says that the Supreme Court has local decisions that say it can’t be done, and he says, it should be withdrawn and it should be disregarded,” Datadin told the Court.

He said it is clear that Mohamed was given an opportunity to respond, adding that the new or additional taxes were not “imposed” on him.

The High Court Judge upon hearing the arguments set Friday the 12th September at 1:30pm for ruling.

Related posts:

GRA files criminal charge against Azruddin Mohamed over false declaration and undervaluing of luxury vehicle GRA submits “proof of purchase” costs for Mohamed’s luxury car Full Court upholds High Court injunction against GRA in Mohameds luxury vehicles case High Court throws out AG’s request to discontinue Paul Slowe’s PSC case