The government is urging the Guyana Revenue Authority (GRA) to enforce the tax laws as it relates to internet cafe owners involved in international telephone calling as they owe the state a substantial amount of revenue.
According to Cabinet Secretary Dr Roger Luncheon, at its sitting last Thursday, cabinet called on the GRA to proceed more “aggressively” against the tax evaders.
The call by cabinet came days after the GRA announced that it would move to prosecute those persons since the entity had conducted investigations and it was revealed that within recent times, a large number of individuals and entities have become involved in such operations, resulting in a significant reduction in revenue collected from legitimate providers of international service.
“These individuals and businesses have essentially created illegal telecommunications networks that employ authorized VSAT equipment for unlawful purposes or VSAT equipment without the requisite licenses, SIM banks, broadband, Virtual Private Networks (VPNs) and international Voice Over Internet Protocol (VOIP) providers like Vonage, Skype, and Packet 8 to offer outbound and inbound voice calls to the public for a fee. These operations are illegitimate and essentially result in tax evasion since no revenue is paid on these calls,” the GRA had declared.
The tax entity had said that it intends to intensify its surveillance and investigative activities in collaboration with the competent relevant sector agencies to identify and prosecute defaulters to the full extent of the law while encouraging the public to report the existence of this type of operations to them.
According to Luncheon a report seen by cabinet suggested that the volume of the internet cafe operations is significant and as a consequence “the tax evasion result in substantial loss of revenue to the state.” Luncheon noted that the tax laws in Guyana make it very clear that once you earn income it is taxable.
This is laughable. Is this government real! The entire “FREE” world is wide open when it comes to communication technology, but their problem is their inability to control this situation. I can walk into a store , buy a magic jack, plug same int my PC and presto I’m calling you in Guyana. LONG LIVE FREEDOM!
I agree, the Government and GRA are ignoring the bigger fishes
Plans by the GRA that are being backed by the Government to target internet call centres for tax evasion is a direct attack on the majority of the poorer, overtaxed population.
This facility is used by these people since they cannot afford the high call charges demanded by GT&T. I do hope that they remember this action by the Government when it comes to election time.
In the developed countries, once you have an internet connection you can talk unlimited for free to anyone, anywhere in the world who also has internet connection using programs such as Skype etc. These developed countries understand the need for cheap (free) communication and doers not target the service providers.
I urge the GRA and Government to target the larger, more corrupt party supporters. For example I understand many of the suppliers to the Skeldon Sugar Modernisation Project has requested that payment be made directly into their US$ overseas accounts thereby evading million of dollars in taxes.
Additionally, I urge the GRA to regulate the Supermarkets.
There is too much tax evasion and corruption in Guyana and its need to be tackled from the big fishes down not the other way.
Juan this entire madministration is a joke. Just another effort at totalitarian control while their cronies import all sorts of ‘commodities’ for a simple donation to the right coffers.
………..go back and read sn…….and you will where big jag touted the computer field and youth development……..two mouth out come!!…….one for and other against…….
While govt has every right to collect revenues for the public’s coffers, this is another case of the govt failing to see the forest for the trees.
OVERSEAS GUYANESE CONTRIBUTE 50% OR MORE OF GUYANA’S GDP.
When will the damn govt get this point. At this time of looming recession in the developed world where half of Guyana’s GDP happens to come from, the govt is clamping down on struggling Guyanese trying to maintain contact with the very source of their livelihood. Instead of finding ways of increasing the lines of communication, they are concerned about removing them.
With remittances likely to decrease due to the the global economic crisis affecting the sources of remittances, you would think that the govt would be focused on stimulating communication to ensure the flow of remittances remain constant because when remittances evaporate crime will increase in Guyana. Getting peanuts from clamping down on these illegal overseas phone calls cannot compensate for the loss of remittances and the rise in crime. How else do they expect Guyanese people to beg for and obtain assistance from relatives abroad when they remove the cheap sources for easy facilitation of this begging and ask people to pay through their noses for it?
Further, the crackdown on these illegal operations only serve to highlight the utter mess the country’s telecommunications sectors is presently in. Expats can call the rest of the Caribbean and South America for peanuts compared to Guyana and the truth is that Guyanese benefit more from overseas remittances than anyone else.
so true!
Michael you are right on target my friend.
This is just another blatant display of arrogance coming from Luncheon when he states “the tax evasion result in substantial loss of revenue to the state.”
On the one hand Government continues to fail to provide any form of stimulus that would create substantial investment / development in the country, while seeking out every opportunity to imposed more burdens on the weary backs of its citizen.
Does anyone in government understand that a very massive amount of money collected as VAT is paid directly by overseas Guyanese? After all, who’s money is it that send the masses shopping for basic goods & services?…….. The arrogance of these people!
But the good news is that there is a quick fix to all this. All that is required is for those of us in the diaspora to purchase some MAGIC JACKs and send them to our loved ones back home.
Its a good thing i haven’t opened mine as yet, but don’t worry, the public is aware of this and they will use measures to avoid being caught………….remember when GRA sent some officers to a businessman home in Bel Air???………well lets hope they don’t operate like this.
You said it was something illegal, that’s why he drove away, so internet calls would be illegal without paying your dues, so they would surely visit!
IT is high time that the head of the GRA pay taxes on his income to which he enjoys total immunity. Shameful
Where did you get that info?
I not sure that what you say is correct?
Care to eleborate?
Are you saying that Heads of Governemnt Departments do not pay incone taxes?
Nah…..you wrong…
badall>>”..SN news would not have printed my comment if it were not true ….”
Noo…NO…. you are assuming that the Moderator who has to approve posts
does know that the comment you made is a factual one.
I do not believe that the Head of the GRA does not pay income taxes.
Now I have to get my sleuths working on this. as for example, the Moderator.!
Moderator? Are you there?
Moderator’s note:
The Commissioner General is paid a tax free salary as part of the foreign funded arrangements for the merger of the IRD and Customs and Excise Department.
Please rethink the consequences of closing down cafes.
(1) Many of us IT technicians will be out of a job. Many IT technicians look at these cafes for an additional income. The only IT blooming industries in Guyana is these Cafes. IT in other areas is practically stagnant in Guyana.
(2) Going after cafes will only hurt the “small man” and “poorer” class in society. What happen to the ISPs that sell VOIP minutes to their customers (who have a computer at home) directly? And the pooper people “who cannot afford a computer” depends on the cafes to keep communication with loved one. Communication is an essential necessity of life. Please ask yourself this question “How long can you stay away from someone you love without going insane?”
(3) Many people also uses cafes to ask their love ones for financial assistance, taking away these cafes means taking away money flowing into the country.
(4) GRA is referring to authorized VSAT connection, I never knew the monopoly that stated “GTT to be the only gateway for transmission of both VOIP and Data” has broken, although both the government, many large corporate and ISP have VSAT links.
I am sure there is alternative way to deal with cafes, for example, force cafes to be registered and pay the necessary tax, however this have to cut a cross to ISPs and VOIP minutes resellers that offer VOIP sale and services.
Well Said, added to what you said jobs are so hard t get in GT and now the Govt will be taking bread away from honest hard working people. Instead of doing that they can regularize this kind of business, Again this is a DICTATORSHIP and people that lack vision.
This is one time that we all have to put heads together and protest against this kind of decision. BULLIES
……..get going with ms and a descrambler……easy work ……!!
Cabinet will not get involved in a private industry like this unless the President gives his approval!
Nothing is wrong with going after illegal Internet cafes, but why? Are the cafes being used for sharing information overseas that exposes the widespread corruption in government?
Okay, so when will goverment go after money laundering businessmen? Why hasn’t the GRA investigated Roger Khan’s business holdings? When will the GRA probe those with new houses and new cars to determine the source of their wealth?
closing internet cafes wouldn’t help……ppl would buy these little devices and make calls from home,,,,,,, how would gra crack down on these ppl? also, closing down the cafes ppl wouldn’t afford to call their families abroad and ask for money causing the country to lose foreign currencies.
Dr Luncheon should be calling on the GRA to investigate businessman
Roger Khan assets, yes the same Roger Khan that help this PPP gov’t
to fight crime in the country.
And what about the others bogus “Businessmen/Women” who never
did a day’s work that is putting up mansions and dirving De best of
vehicles on the streets of Guyana, it is high time to investigate the
activiities of these people Dr, order the GRA to go after them now.
The internet operators catering for the poor.
here we go again
i used to oparate an internet cafe and call center, it does create employment and service for a communities
when cafe does the installation, they pay vat & tax on equipment
then they have to pay high rent, high internet bill, high light bill, some months you just work to pay bills and some months you work at a lost
you know that the reason why people are still migrating to other countries,
as i mention before,let the cafes register and pay a yearly fee
these people are making an honest living
remember everthing people buy in guyana has been tax or vat
please mr president go after those big fish that drive $10.000.000 vehicles
I think that Sattaur was just trying to get public notice.
Perhaps he retiring soon and is trying to positin himself for another political
appointment….maybe a Minister.
All this diatribe about equipment and licensing when in truth and reality like you said, people are trying to make an honest living.
Government having collected all those taxes now descend upon the honest
people to extract more and / or shut them down.
Rediculous !
pay your bloddy taxes..yuh making lots and lots of money…..
yuh think i could complain when i went yesterday to get my license sticker for my vehicle?
its $74.00 and was shocked to hear I had to pay another $60.00….
New to me its called “CityTax”
all i could do is grind my teeth and pay if not no sticker……
evil guyana and canada is different.
Rough as usual ! wid ” pay your bloddy taxes..yuh making lots and lots of money…..”
Mellow time …buddy…mellow time…is Christmas !
And how you arrive at de conclusion dat “yuh making lots and lots of money…..” ?
Chill> Mellow> Ripen>
ha ha ha – evileyes you need a good cut-ass for what you just said, ha ha .
Stop kidding around man, in Canada you pay your taxes and benefit directly from them. In Gt you have to wonder where your VAT and other taxes go.
Need I mention the big business people in Guyana (with the right connections) who have consistently refused to pay rates and taxes for years now?
Besides, I am betting that sometimes you communicate with your relatives using these said services., so give these people a break.
So, why don’t you go to Guyana on a one-way ticket and pay the taxes and never return to Canada!