–welcomes ‘well-grounded’ ruling by Justice George in similar case
President Irfaan Ali on Wednesday criticised Justice Gino Persaud’s recent ruling that barred the Guyana Revenue Authority (GRA) from imposing post-clearance taxes in the luxury-vehicle case involving United States (U.S) indicted Azruddin Mohamed, arguing that such audits are lawful, essential and long-established within the customs system.
Weighing in on the recent ruling by Justice Persaud in the luxury vehicle tax case involving the Guyana Revenue Authority (GRA), President Ali during a live broadcast said post-clearance audits and assessments are not novel processes but are crucial to the country’s customs architecture.
In this context GRA’s active step to enhance its capacity to verify the accuracy of declaration after good surpass the port of entry, is an approach endorsed by the World Customs Organization.
“Post clearance, audits and assessments are by no means novel. For decades, these mechanisms have been integral to the customs architecture. Historically, such functions were executed through the inspections department of the former Customs and Excise department, now subsumed within the GRA,” President Ali said.
Justice Persaud, last Friday, ruled in favour of Mohamed that the Guyana Revenue Authority (GRA) could not impose post-clearance taxes to the tune of $421 million on a Lamborghini and two other vehicles.
GRA has since moved to appeal the ruling, a move which the President has welcomed. The state’s power to recover taxes owed and outstanding is vested in various pieces of legislation, including the Income Tax Act, Customs Act, Property Tax Act and Companies Act.
He stressed that Justice Persaud’s ruling impedes GRA taxes rightfully owed to the state.
“That ruling now slated for appeal by the GRA has been widely criticized as perverse, internally inconsistent and disconnected from both established custom practice and the evident intention of the custom Act 82:01,” the President said.
While Justice Persaud held last week that the GRA had no legal basis to impose taxes after imports were cleared and paid for, even in the face of fraudulent paperwork, acting Chancellor Roxane George ruled on Monday, in the case of Zhangzhen Yu, that the agency may lawfully issue post-clearance tax assessments.
This was a ruling which President Ali welcomed.
“Her ruling brings coherence to the law and protects the revenue of our country. This welcome clarity stands in stark contrast to the earlier ruling by Justice Gino Persaud, a that has confounded many observers, and which the Guyana Revenue Authority regards as fundamentally flawed in law,” Dr. Ali said.
He reiterated that the ruling in the case of Zhangzhen Yu, the chancellor reaffirms that post clearances are not only lawful but essential to protect the public purse.
“The government welcomes her clear, authoritative and well-grounded judgment, which re-establishes coherence in customs and ensures that the GRA can continue fulfilling its mandate without artificial or ill-conceived constraints,” the President said.
