A recent amendment to the Value Added Tax (VAT) Act to restrict business owners from leaving the shores of Guyana if they owe payments of the Value Added Tax to the Guyana Revenue Authority (GRA), is being challenged legally by PPP Member of Parliament and former Attorney General, Anil Nandlall.

According to court documents, the matter will be heard on February 24, 2017 in the High Court and Attorney General, Senior Counsel Basil Williams will be representing the government.

Firstly, Nandlall is calling for a declaration to be made that the amendment which prevents citizens from leaving the country, if they owe VAT, “is or is likely to be, contrary to, inconsistent with, and in violation of Articles 40 and 148 of the Constitution of the Co-operative Republic of Guyana, unconstitutional, unlawful, null, void and of no effect”.

The National Assembly following the approval of the 2017 National Budget approved the amendment on January 5 this year. Section 45(1) of the VAT Act Chapter 81:05, was amended to facilitate the change. It was subsequently assented to by President David Granger on January 16, 2017, and published in the Official Gazette on the same day.

The former AG is also calling for an order, which strikes down the amendment, which he says, goes contrary to Constitutional provisions.

“…an Order striking down Section 45(1) of the Value Added Tax Act, Chapter 81:05 as amended by Section 2 of Act No. 3 of 2017, Value Tax (Amendment) Act 2017… pursuant to and in accordance with Article 8 of the Constitution of the Co-operative Republic of Guyana, on the ground that the same is or is likely to be, contrary to, inconsistent with, and in violation of Articles 40 and 148 of the Constitution of the Co-operative Republic of Guyana, is unconstitutional, unlawful, null, void and of no effect”.

He reasoned that Article 8 of the Constitution declares that the said Constitution is the supreme law of Guyana and, if any other law is inconsistent with it, that other law shall, to the extent of the inconsistency, be void.

Nandlall explained that Articles 40 and 148 of the Constitution “guarantee to every individual subject,” as a fundamental right and freedom, protection of freedom of movement throughout Guyana, the right to reside in any part of Guyana, the right to enter Guyana, the right to leave Guyana and immunity from expulsion from Guyana, inter alia.

However, he noted that the amendment to the VAT ACT conflicts with this provision in the Constitution, since it empowers and authorizes the Commissioner-General of GRA to prohibit a person from leaving Guyana, if the Commissioner-General has reasonable grounds to believe VAT is owed by that person.

He said too that the power and authority which is conferred to the Commissioner General is “ex facie,” or exercisable at any time, without affording the person a fair or any hearing; or without serving the person a notice of demand for taxes allegedly due; or without allowing the exhaustion of any lawful recourse available to the person to challenge the taxes alleged owed; or without an Order from the High Court or any Court; and without a final assessment of taxes owed.

Related posts:

Opposition moves to the High Court to challenge appointment of Hicken as Acting Top Cop Nandlall files court action against President’s directive to Police Service Commission Nandlall moves to Court to block return of Law books PPP moves to court over Ministers Felix and Scott serving as Members of Parliament