The Guyana Revenue Authority (GRA) has won a court battle against SOL Guyana Inc., and the fuel importer will now have to pay to the GRA a whopping $2.7 billion in taxes owed for fuel importation.
In a statement issued on Thursday, GRA said the judgment was obtained against the company for corporation tax owed to the tune of $2,713,212,251, together with penalties and interest applicable until the debt has been completely paid.
It has been revealed that in another matter involving GRA and SOL, a High Court Judge had last Friday refused an application made by the fuel importer for an Order seeking an extension of time to file a corporate tax appeal against the Revenue Authority in relation to taxes calculated in several Years of Assessment that were raised and maintained pursuant to the provisions of the Income and Corporation Tax Acts.
The Court ruled that SOL Guyana Inc. failed to satisfy the precondition for a tax appeal, as set out by Section 98 of the Income Tax Act. The Revenue Authority had argued, among other things, that the company has no right of appeal under Section 86 of the said Act, and that no extension of time beyond the lapse of the statutory period could be considered where there is no right of appeal.
Further, the Court has ruled that “the full payment of disputed taxes or the lodging of a bond or a guarantee to the satisfaction of the Commissioner-General is a precondition before the right of appeal against an assessment under the Income Tax Act can be exercised.”
Moreover, it was found by the Court that Sol’s failure to secure and place a bond before the Commissioner-General for him to determine whether or not it is to his satisfaction, pursuant to Section 98, at the time they requested one to be lodged, has frustrated the Company’s right of appeal in the circumstances.
Back in March of this year, it was revealed that GRA was investigating SOL for importing and clearing millions of litres of fuel at duty-free rates for ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL), but was failing to deliver the fuel to the oil company. EEPGL is entitled to tax exemption on fuel imported for its operations.
At the time, GRA had claimed that SOL owed $2.6 billion in taxes by abusing EEPGL’s exemption letters.
“SOL Guyana Inc. utilised EEPGL’s tax exemption letters to import and enter quantities of Gasoil…at a lower rate of Excise Tax, and failed to deliver the full amounts to [EEPGL] as required…This act in itself is a flagrant disregard of the laws administered, and the Revenue Authority will not condone and allow the Government revenues to be used as ‘turnovers’ or in any such manner,” Stabroek News had quoted from a letter, dated March 9, sent to SOL from GRA.
Further reports at the time had revealed that SOL had allegedly committed similar acts; that is, by failing to deliver the full quantities of fuel it imported for other major companies operating in Guyana.
SOL had denied the accusations made by GRA, saying in a subsequent statement that “…SOL categorically denies these false, highly misleading, and damaging allegations.”
Moreover, the fuel importer had noted that it has worked collaboratively with GRA and has systems in place to ensure its compliance at all times.
