GRA calls on PSC to condemn unconscionable businesses - legal recourse being considered: February 7, 2006
The Guyana Revenue Authority (GRA) is calling on the Private Sector Commission (PSC) to condemn the indiscriminate pricing by some businesses that it believes are using this transitional phase of the VAT implementation to hoodwink ordinary consumers.

Until the PSC publicly denounces such acts, it is condoning flagrant discrepancies by some prominent businesses, leading to compromising state revenues and possible fraudulent activities.

Commissioner-General of the GRA Mr. Khurshid Sattaur  says while the GRA applauds the PSC for giving credit to the government, he believes that the PSC should be more actively involved in edifying businesses that are exploiting consumers and support GRA’s efforts.

He said the PSC needs to offer advice and assistance to the business community in effectively administering the VAT rather than be critical of the GRA for its actions in seeking to protect consumers.

The GRA re-emphasises that it welcomes the introduction of the Value Added Tax (VAT) since this would help significantly in promoting transparency and accountability by both the GRA and the business community.

With such a system in place the GRA would be in a better position to assess a business’ true tax liability, whether income tax or corporation tax, by those presumably filing returns.

The GRA made several attempts to visit some prominent businesses in the Region Three (Essequibo Islands/West Demerara) and Region Four (Demerara/Mahaica) areas for compliance checks based on persistent consumer complaints.

However, every attempt was met with the businesses being closed. Reports indicate that the businesses seem to be notified of the visits, hence they take defensive measures.

The GRA has been very vigilant and patient. However, with the persistent violations being reported, it is seriously considering legal recourse.

Commissioner-General Mr. Khurshid Sattaur says he is presently seeking legal opinion on several matters relating to record-keeping and invoicing in particular, and will soon take legal action against businesses that have not made significant efforts to comply with the laws of Guyana.