Increased importation of motor vehicles: September 14, 2007
The Guyana Revenue Authority (GRA) has noted a marked increase in the amount of vehicles being registered with the Licence Revenue Office (LRO) over the past four years.

According to its statistics, in 2003, there was a total of 5,977 vehicles registered with the LRO. This figure grew by 29 percent in 2004 when 7,757 vehicles were registered.

In 2005 there was a slight increase less than 1 percent taking the registration figure for that year to 7, 810.

Last year, the steady increase in private and hire cars, buses, vans, and motor cycles contributed to the magnificent increase of 38 percent (10,841) in the amount of registered at the LRO.

The first quarter of 2007 has seen 2,153 vehicles being registered and 2,444 in the second half. Since 1997 there has been a total of approximately 70, 000 registered vehicles in Guyana.

However, the Authority wishes to caution that these figures may not be accurate since the GRA is aware that there are motor vehicles which enter the country illegally.

While these figures may represent a significant amount of revenue collection, the GRA has to be sure that the revenue collection from these vehicles is efficient.

Commissioner-General Khurshid Sattaur has pointed out that some years ago, the GRA discovered from records maintained at the crossing that a substantial number of vehicles had entered the country illegally from Suriname.

In that regard, a number of measures were put in place to deal with this issue and to ensure that when vehicles are imported from that country, that the process conforms to the arrangement which ought to be in place.

One such measure is not allowing vehicles to enter Guyana without them being driven by their owners. Other measures include checking the vehicles in the country to ensure that they   match their registration documents.

The Commissioner General pointed out that through these measures, the Authority has been able to apprehend a number of  illegal vehicles.

The GRA Head explained that in many of these cases, the GRA has the right to charge the persons involved for tax-evasion and they can also be prosecuted under the law and their vehicles forfeited.              

The GRA continues to strengthen its operations at the ports of entry in an effort to stem this illegal entry of vehicles into the country.
 
The Authority is presently working on a computerized database that would assist it in monitoring the importation and registration of motor vehicles in Guyana more efficiently.

The introduction of the Taxpayer Identification Number (TIN), which is already partly operational, is expected to strengthen the efficiency in this regard.  

Very soon persons registering vehicles and conducting other business with the LRO will be required to use their TIN.

What this will eventually do is allow the GRA to assess the amount of vehicles owned and registered to any particular individual.

It means that the GRA would have a more efficient way of determining the relevant amount of taxes due and ensure that the fair and correct amounts of taxes are paid by those required to do so.

It would also mean that the GRA would be in a better position to assess the assets of individuals and if they are not in the tax net to capture them. The GRA is aware that there are persons who do not report their true assets and earnings and are not registered to pay the appropriate taxes.

It is important to note also, that the information that is now available on the Total Revenue Integrated Processing System (TRIPS) about the vehicles’ characteristics and the owner (s) can be sued for law enforcement purposes by the GRA and other law enforcement agencies as well.