Cover-up of duty free concessions… GRA pursues witch-hunt against Glenn Lall – Publisher says Sattaur displays an inability to manage the agency in a transparent manner
Days after refusing to disclose the grounds under which it granted millions of dollars in duty free concessions to a Chinese logging company, citing confidentiality, the Guyana Revenue Authority (GRA) is continuing its witch-hunt against Kaieteur News to silence the newspaper in its investigations.
The tax agency, using the state-owned Guyana Chronicle, has again released information that its boss, Khurshid Sattaur, says is confidential.
The latest salvo against Glenn Lall, publisher of Kaieteur News, was carried in yesterday’s edition of the Guyana Chronicle. There was the bold, front page headline, “GRA investigates millions of $$$ in Customs duties evasion- Glenn Lall again implicated.”
Citing an unnamed “tax analyst”, the story contended that Lall is now said to be at the “centre of an alleged evasion where his company has, for over a decade now, been “importing printing inks and passing them off as products of the Caribbean Community (CARICOM); therefore enjoying duty free concessions for those importations.”
The “tax analyst” believes that several hundreds of millions of dollars were lost.
The newspaper reported that the GRA’s Customs is currently investigating “whether” a consignment, consisting of a skid and 64 drums of printing ink, imported into Guyana by National Media and Publishing Company Limited, publisher of Kaieteur News, from the Coates Brothers Caribbean Limited in Trinidad, could have satisfied the criteria for it to be treated as community goods under CARICOM agreements. Under the regulations, goods produced in CARICOM states and sold to each other are exempt from certain taxes.
The Guyana Chronicle said that GRA on examining the drums of ink in October last year found that a few had two labels, one of which states that the origin of the product is Chicago, United States of America (USA), and “another that is superimposed on the first, which reads product of Trinidad and Tobago.”
The Guyana Chronicle said that it called an official from Sun Chemical, the parent company for Coates Brothers Limited. Sun Chemical insisted that the shipment indeed originated from Trinidad and drums are sometimes reused to pack inks to “save on cost”, the Chronicle reported.
NOTHING WRONG
The Trinidad Company has not only been supplying Kaieteur News for two decades now, but also the Guyana Chronicle and Stabroek News. They, too, would have been benefitting from the CARICOM concessions.
Sun Chemical, according to the Guyana Chronicle report, made it clear that nothing was wrong with the transaction.
While the Guyana Chronicle quoted the “tax analyst”, it also unwittingly disclosed that it was GRA itself that released the information.
“The Guyana Customs and Trade Administration is contending that the fact is, that Sun Chemicals is suggesting that the raw materials are made from various plants around the world and shipped to Trinidad. This means that there are issues that have to be looked at based on the granting of such concessions, particularly with respect to conditions to be satisfied within the understanding of substantial transformation.”
GRA, according to the report, also claimed that it has not made progress in the investigations.
Kaieteur News Publisher, Glenn Lall, said he continues to be disappointed in GRA and its Commissioner-General, Khurshid Sattaur. He said that Sattaur displays an inability to manage the agency in a transparent manner. He said that in the first instance the ink was imported by National Media and Publishing Company, and not Glenn Lall.
Lall explained that when the ink was held up by GRA last October, he spoke to Sattaur and was told to lodge just over $2.2M for “possible taxes”, pending checks by Customs.
Several months passed before Lall called Sattaur in February asking about the transaction.
“I conveyed to him my disappointment over the fact that the monies were held up and told him that if GRA is treating a newspaper in such a manner, then one can only imagine what could be happening to the ordinary Guyanese out there who have no voice to complain.”
Sattaur agreed to quickly end the matter, and in February, deducted the monies from taxes on a shipment of newsprint that Kaieteur News had shipped in.
By settling the matter, GRA in effect agreed that the shipment of ink from Trinidad was above board and nothing was wrong, Lall pointed out.
“If one examines the fact that the Trinidad Company is saying that nothing was wrong and that even Stabroek News and the Guyana Chronicle have been buying from that supplier, benefitting also from the CARICOM concessions, then one has to wonder about the article.”
COVER-UP
According to the Publisher, more worrying is the fact that GRA has refused to investigate several instances of questionable transactions. These include how one top GRA official is building three houses at the back of Eccles, East Bank Demerara, all at once for his three children.
There was also silence from GRA on how one prominent businessman from West Coast Demerara brought in a Hummer vehicle but little taxes were paid, or how a senior Government official brought in a limousine but only paid a pittance.
The offence by GRA started after questions were asked about the appropriateness of Sattaur’s three children working at the agency. It would also follow questions posed to Sattaur over details about the duty free concessions granted to Bai Shan Lin, a Chinese logging company that is under fire for its questionable agreements with Government.
It appeared that GRA granted the concessions even before Bai Shan Lin’s business plans were approved. In addition to the scores of logging trucks, loaders, bull-dozers and excavators, the company has been allowed tax waivers on high-end Lexus and Infiniti sport utility vehicles.
Concessions are supposed to be consistent with the kind of investments being made.
GRA’s Commissioner-General had said the details of those concessions are confidential.
Days after those questions and news reports, GRA released details of “confidential” transactions.