GRA is netting over $ 44B from auditing large taxpayers in a four-year period
Kaieteur News – Following a series of audits conducted between 2017 and 2020, the Guyana Finance Authority (GRA) has been able to net over $ 44 billion from auditing its Large Taxpayers Division (LTD). Kaieteur News understands that the investigations, which began in October 2017, closed an average of 41 cases a year.
In terms of recovered revenue, GRA said this totaled $ 4.6 billion in 2017, $ 26.9 billion in 2018, $ 8.2 billion in 2019 and $ 3.2 billion for the period January-May 2020. The division had also began processing Value Added Tax (VAT) refunds in 2018 and following an audit, was able to recover approximately $ 1.6 billion to date.
GRA, Kaieteur News understands, sees this as a major achievement since the creation of the LTD in February 2017. According to GRA records, the LTD was created as part of its Tax Reform Strategy and in line with the measures set out in the National Budget for fiscal year 2017. The former coalition government, with technical support from the International Monetary Fund-Caribbean Regional Technical Assistance Center (IMF-CARTAC) was able to get the unit up and running in no time.
Furthermore, this news agency understands that all approved insurance companies, all banking institutions, all telecommunications companies, oil and gas conglomerates with a turnover in excess of $ 1 billion are considered major taxpayers.
Currently, the LTD is responsible for most of the major tax administration functions of 244 of the largest taxpayers in Guyana. The division acts as a single window for Account Management, Audit and Research and Program Planning, Risk Management and Advisory issues relating to the large taxpayer segment.
Led by Sharon Carrington, Deputy Commissioner for Inland Revenue (Ag), the department has an established complement of 42 staff, including three Assistant Commissioners responsible for the three Units within it.
GRA said this move was needed because, under its previous operating framework, there was a limited focus on the large taxpayer segment. In addition, the compliance risk management with respect to registration, filing, payment and reporting of the segment was fragmented and ineffective.
The authority said its new holistic risk-based approach will not only ensure quality treatment strategies for the large taxpayer segment by ensuring that all relevant facts and data are included in risk assessment and treatment decisions – it will ultimately improve voluntary compliance.