Nigel Hughes questions GRA’s ‘selective enforcement’
-‘absolute foolishness,’ says Sattaur
Attorney and AFC executive Nigel Hughes yesterday sounded concern over what he said was apparent selective enforcement of taxpayer penalties by the Guyana Revenue Authority (GRA)—a charge that Commissioner-General Khurshid Sattaur rejected outright.
Hughes, in a statement, said that Sattaur had “once again exposed his lack of independence and overt enthusiasm to do his master’s bidding,” following an article in the Guyana Chronicle headlined ‘Another AFC leader linked to questionable ethical behaviour… Nigel Hughes implicated in HarvestCompany Ltd’s financial irregularities.’
“The issue with Harvest Company Limited is not the non-payment of [Pay As You Earn tax contributions] as alleged but the imposition of interest and penalties by the Commissioner General of the [GRA] on Harvest on the capital sums of $468,000.00 and $2,337,110.00, while he waives interest and penalties for sums in excess of $70 million for a company, the proprietors of which are not known to be unsympathetic to the Government of the day,” he said.
Hughes provided a copy of the judgment of Justice Rishi Persaud in the matter of the GRA Vs DIDCO Trading Company, in which the Sattaur consented to the waiving of interest and penalties, which Hughes identified as being currently worth in excess of $70 million. “It must be noted that this facility is not afforded other companies in similar positions,” he said.
He also released a letter he had written to the GRA’s Legal Officer, Mahendra Satram, dated June 22nd, 2012, and copied to Sattaur, in which he stated in relation to the agency attempting to levy on his Chambers that “I am reluctant to believe that the actions of GRA might be driven by other considerations not disconnected to political arena.” He said that to date, he has received no response from either official.
Hughes said that payment was effected yesterday to the GRA for the capital sums owed by Harvest Company Ltd, while the company, through its attorneys, wrote to Sattaur asking if he could explain his decision “to waive taxes for one taxpayer for sums in excess of $70 million when other taxpayers of a different hue must suffer a different fate for the same taxes.”
“While he is at it, the Commissioner General may wish to explain whether he has the same enthusiasm for collecting taxes from the Office of the President for certain contract employees and special advisors. We ask for no special privileges, just equal rights and equal application of the law to all,” the statement added.
When contacted by Stabroek News on the issue, Commissioner-General Khurshid Sattaur rejected what he said was a “cheap ploy to divert attention from the real tax-evaders.” To say that any one company is politically singled-out is “absolute foolishness,” he said, while adding that the GRA has successfully sought and obtained through the court unpaid sums from companies of all strata.
In relation to the Didco matter, Sattaur said that the GRA waived the interest but the principal sum of $59.8 million had to be repaid. He further said that the GRA has taken what he described as “recalcitrant taxpayers” such as Didco, COPS, Guyana Stores and Kayman Sankar to court and that it would not be deterred by anyone or any company and their cheap publicity.
“The GRA views these statements nothing more than a cheap ploy to divert attention from the fact that the company which owns and operates the popular Sidewalk Cafe has used the employees’ deductions and the VAT paid by their patrons to enrich themselves, rather than pay such funds over to the Consolidated Funds where they rightfully belong,” Sattaur said. “The GRA will not be intimidated by these dastardly acts coming from persons who have been pontificating ad nauseum about misusing state funds rather than paying them over as taxes and using taxpayers money for their own aggrandisement. This foolishness and cheap publicity will not be tolerated by the GRA,” he said.
The GRA has sought and obtained judgement from the court for unpaid taxes amounting to millions of dollars and attempts made to collect on these judgments have been met with strong resistance, leading one to believe whether one set of law applies to some people only, he added.
According to Sattaur, it was the Minister of Finance Dr Ashni Singh who brought Hughes’ statement to his attention and he was highly disturbed over its implication for the impartiality and independence from political interference of the GRA, since he, as the Minister in charge of the sector, has diligently resisted any temptation to interfere with its operations. To suggest that the GRA is politically-motivated in carrying out its mandate is a cheap ploy to divert attention from the real tax-evaders, Sattaur told Stabroek News.
He said that the agency operates in a highly ethical and professional manner. “I’m personally perturbed over this recent statement. I’ve operated in a professional manner since 2003 when I first held this post. Prior to that I worked at the [Internal Revenue Department] since 1983 and there is yet one person to dispute my professionalism,” he said, while adding that he was appalled by “such inflammatory and degradatory statements.”