Seizure of Lexus vehicles… GRA drops charges against Lalls

Kaieteur News publisher, Glenn Lall

… reaches amicable settlement with remigrant couple

The Guyana Revenue Authority (GRA) has dropped all charges against Kaieteur News’ Publisher, Glenn Lall, his businesswoman wife, Bhena and the re-migrant couple for alleged tax evasion, stating that the tax agency has reached amicable settlement with the elderly couple. The Lalls and the remigrant couple, Narootandeo and Gharbassi Brijnanan were accused last year of defrauding the State of millions in relation to the importation of two high-end Lexus vehicles. They were named in private criminal charges drawn up by the tax agency and the matter was being heard by Magistrate Judy Latchman at the Georgetown Magistrates’ Court. The elderly couple, of Continental Park, East Bank Demerara, was jointly charged with making false declarations and conspiring to evade taxes on two vehicles they imported in 2013, under the remigrant scheme. The Brijnanans were being accused of subscribing to a false declaration in a matter relating to Customs, by falsely declaring two Lexus LX570 motor vehicles, to the worth of US$44,158 each, at GRA’s Camp Street, Georgetown Office, between June 18, 2013 and September 20, 2013.

Commissioner General of GRA, Khurshid Sattaur

The GRA has also claimed that the couple, together with persons unknown, aided and abetted the fraudulent evasion of duties due and payable to the tax agency on the two Lexus vehicles, PRR 8398 and PRR 8399, between June 18, and September 21, 2013. The charge against the Lalls stated that between June 18 and September 30, 2013, they knowingly dealt with goods with the intention to defraud GRA. They, too, were accused of aiding and abetting the evasion of duty on the two Lexus vehicles between June 18 and September 21, 2013. The Lalls and Brijnanans denied any wrongdoing and were subsequently released on self-bail. They were represented by a battery of high-profile lawyers led by Senior Counsel Rex McKay. The team included Attorneys-at-Law Khemraj Ramjattan, Nigel Hughes, Robin Hunte, Brendan Glasford, Bettina Glasford and Christopher Ram. Appearing for the GRA were Attorneys-at-Law Sandil Kissoon and Mahendra Satram. During a hearing before Magistrate Latchman last month, lawyers from the tax agency revealed that they and the re-migrant couple were working to resolve the matter amicably. As the matter was called again yesterday, none of the defendants were present in court. The court heard that the Lalls were out of the jurisdiction while the Brijnanans had offered excuses for their absence by way of letter.

Remigrant, Narootandeo Brijnanan

It was through Kissoon that the court was informed that the tax agency wished to withdraw the charges against the parties. At the end of the three minute hearing Magistrate Latchman dismissed the charges brought against the four. The tax agency, by way of public statement, said that it had, in an amicable resolution agreed to accept compensation in lieu of or in substitution for proceedings in a court of summary jurisdiction in-keeping with the law. Commissioner-General, Mr. Khurshid Sattaur is quoted as saying “After some discussions, we were agreeable with the proposal put before us, as we are more inclined to amicable resolutions rather than litigious ones. Notwithstanding, we are prepared to go the distance to protect tax revenues.” The agency noted the article which appeared in the Guyana Times on January 6, last and advised that too much media publicity in tax matters that require some degree of confidentiality can “negatively impact such cases, and force persons to resolve matters out of court by way of compensation, when they are found to be in contravention of the Act or any regulations made there under.” Sattaur emphasised that tax offenders have the prerogative of settling matters out of court. This

Remigrant, Gharbassi Brijnanan

is provided for in law to avoid severe penalty which could include imprisonment. He said that as part of its vision and mission, the organisation seeks to first promote voluntary compliance to ward off enforcement action. “Even when enforcement action becomes necessary, the Authority seeks an approach that lends to achieving efficiency and certainty in the tax dispute resolution process. In this case, like others, we have chosen the traditional method of alternative dispute resolution which is less costly, less time consuming and is not resource depleting,” Sattaur added. The Commissioner-General added that the current laws are “not stringent to allow for prosecution as weaknesses developed because the Scheme is governed more by policy rather than law.” He said that recommendations were sent to the policy makers to have a certain set of laws amended to strengthen the conditions to be satisfied before and after remigrant status is granted. Regarding similar matters that are pending, the GRA head said that when the time comes the Authority will take the necessary action in accordance with the law. The GRA reminded the taxpaying public that concessions are not granted without impositions or fetter, but have statutory preconditions as well as conditions as to the use of those concessions. “Taxpayers have rights,” and the GRA views the use of the court by persons to challenge the actions taken by the agency as a right or entitlement. Notwithstanding, the Authority will do its part to protect the integrity of its operations. “Again, the GRA urges those who are contemplating making use of concession schemes to be cognizant of the laws including anti money laundering legislation, regulations, international agreements and policies governing same as there are serious consequences once found guilty of violating the laws pertaining to such offences,” the statement ended. The private criminal charges against the four came less than a month after the publication of a series of shocking email between GRA’s Commissioner-General, the Attorney General Anil Nandlall and former President, Bharrat Jagdeo, which spoke of a plot to silence Kaieteur News. In late August, GRA descended on the Continental Park residence of the Brijnanans, close family friends of the Lalls, and officers moved to seize the two Lexus vehicles. The vehicles were brought in by the Brijnanans last year after their application for remigrant status was approved by the Ministry of Foreign Affairs on July 3, 2013, and tax exemptions granted by GRA a few days later.