GRA issues final compliance warning to VAT defaulters: February 6, 2007
The Guyana Revenue Authority (GRA) has noted that despite several advisory and compliance visits by GRA staff, several businesses have still not been complying with various aspects of the Value-Added Tax (VAT) law.

Among the violations noted are non-compliance with the guidelines for record-keeping and issuance of receipts in spite of being aware of the consequences for consistent violations.

The GRA emphasises that the penalties for non compliance with accounting procedures such as failing to provide a tax invoice is liable on conviction to a fine not exceeding $15, 000 and imprisonment for a term not exceeding six months. Failing to provide a tax invoice other than as provided for under Section 28 of the VAT Act is another offense that attracts  a fine not exceeding  $15, 000 and imprisonment for a term not exceeding two years. 

Another observation was that some businesses were not advertising prices of their goods either with or without the VAT leading to uncertainty by consumers.

The GRA continues to solicit the support of consumers in policing the VAT, to be more observant and in instances where they believe that businesses are being fraudulent to report the matter to the GRA that will in turn investigate and take the necessary actions.

“We feel there is a need for assistance by the public who are affected by these acts to have redress,” Mr. Khurshid Sattaur said.

The GRA is therefore requesting more written complaints with the relevant information so that the necessary actions can be taken.
  
Mr. Sattaur notes that when consumers do not collect a receipt or accept a receipt without a duplicate they are condoning fraudulent acts. The GRA is therefore appealing to consumers to assist the GRA by demanding proper receipts, by forcing businesses to keep proper records and by ensuring that the correct amount of VAT is paid to Government and not result in higher profits to some businesses.

The GRA wishes to inform some prominent supermarkets in Georgetown that have not been registered that the VAT law gives the GRA the authority to close business operations for repeated offences. For businesses that should have registered for VAT but have not, they will be required to pay double the amount of the output tax due, in accordance with the civil penalties.

Several warning letters were issued to several businesses that were found to be defaulters and Mr. Sattaur is advising that if the corrective measures are not taken, the GRA very shortly would take the necessary legal actions.

Tax Specialists have been visiting businesses in Georgetown and other regions before the implementation of VAT to offer them guidelines and advice in their preparation process for VAT.

Following the introduction on January 1, these visits continued and were later in the month complemented by officers from the Compliance units.