Cites Mahaicony Rice Mills

GRA Commissioner-General Khurshid Sattaur says businesses are obligated to submit their records for audit as VAT refunds will not be paid unless records have been verified.

In a press release Sattaur said while the Value-Added Tax (VAT) is a self-assessed tax the Guyana Revenue Authority (GRA) has a mandate to collect and protect state revenues. He said too “while it is the right of registered businesses to claim a refund of VAT paid to acquire taxable supplies, all claims will be verified before refunds are paid,” alluding to claims by the Mahaicony Rice Mills that the GRA owes it $30M.

Sattaur said the company applied for VAT refunds for January 2007 to January 2008 and it has been processed and the funds have been paid. Further, he said the Refund Verification Unit received an application for VAT refund amounting to $17,084,811 for February to April 2008 from the company, on June 3. However, when auditors visited the company on June 19 to verify the total refund claimed for the said periods “it could not provide the relative sales records.” The GRA said the records were requested after the auditors were unable to reconcile some information the company had provided.

Sattaur said to date the company’s accountant has not made the said records available. “This is hindering the verification process and as a result we have put a hold on the application,” he said, adding that the company has not submitted any other application for VAT refund. Sattaur said VAT registrants are obligated, under the VAT Act to ensure that the requisite books and records are maintained and made available to VAT officers conducting verifications.

The Commissioner-General said too businesses that owe the GRA taxes other than VAT; will have their VAT refund applied to the other taxes and any remainder will then be paid to the registrant.