February 23, 2014 | By KNews | Filed Under News 

A major police investigation has been launched into a multi-million dollar fraud scheme involving duty free concessions for vehicles, with the Guyana Revenue Authority (GRA) yesterday saying that former staffers may be involved.

GRA’s Commissioner General, Khurshid Sattaur

With millions of dollars at stake, Commissioner-General of the GRA, Khurshid Sattaur disclosed that “recently, it was reported to management that persons allegedly posing as remigrants are benefiting others who are supposedly financing highly illegal schemes to grant themselves with the concessions for various classes of luxury vehicles.” It has not been the first time that reports have surfaced over fraudulent duty free concessions for vehicles. Under the tax concession, remigrants are allowed to bring in their vehicles and belongings once they show evidence of ownership for a while. The taxes, normally charged, are waived. Among other evidence, copies of registrations and even insurance are required. In the past, a racket involving what appeared to be forged duty free letters was discovered but there has been recurring reports that somehow, the systems have continuously been bypassed. Sattaur, in a GRA statement yesterday, said that it would appear from recent revelations, that attempts are being made by disgraced elements- “officers who would have been disciplined and taxpayers who would have been placed before the courts, to resort to undermining the efforts made by management to address various areas of weakness in administrative controls and to exploit such weaknesses.” Sattaur said that the agency would have “appropriately” dealt with the officers, whose services in some cases would have been severed. There may have been some taxpayers who would be involved too and “they seem bent on criminal practices”. “As a revenue collecting agency, it is to be expected that rouge elements, both within and without, would attempt to corrupt the system that protects against revenue leakages. In most cases these systems depend significantly on the integrity of the officers tasked with conducting various law enforcement activities and procedures,” the Commissioner-General said. GRA urged for information that would help in stamping out corrupt practices that may exist or appear to exist in any of its areas of operation. The agency is also examining whether the fraud could be linked to concessions that were granted but never followed up or utilized by the applicant. “The GRA is once again considering publishing the names of persons who have not reported to the agency as required on the basis of the issuing of the concessions, but is mindful that such a measure may play in the hands of criminal elements.” Several remigrants would have been prosecuted over the past three years for not honoring their obligations under the scheme. GRA, Sattaur said, would have even detained vehicles with the matters ending up in courts. Under the arrangements, the remigrants are not allowed to sell the vehicles that were granted the tax concessions before three years. The tax agency says it is now considering prosecuting persons under the Customs Act which provides for both the offender and those found in collusion to face a penalty of three times the value of the item and two years imprisonment, if found guilty. “The GRA will spare no efforts to address such alleged wrongdoing and recently launched an independent investigation involving the Guyana Police Force and the Auditor General to determine whether the information received from conscientious and good intentioned informants have merits in order to address this issue and will be requesting the DPP to file criminal charges against persons found to be criminally involved.”