Dear Editor,
I write in relation to the frequent baseless attacks on the Guyana Revenue Authority published by a particular section of the media. The most recent deals with the death of Mr Gordon Maxwell.
As the head of the Guyana Revenue Authority (GRA) I am more interested in correcting the gross travesty that is being perpetrated from the lack of knowledge displayed with regard to the operations of the VAT, which can incite tension between the public at large and the organization.
In one article it was stated that the late Mr Maxwell in his suicide spared his family from harm. Editor, there is no factual or evidential proof of any existing threat against Mr Maxwell’s family, particularly from the Guyana Revenue Authority. The GRA, as the entire populace is aware, is a corporate body mandated to ensure the due administration of the tax laws of this country. It is not a rogue enterprise or a pawn used in some well-orchestrated scheme to execute criminal acts on behalf of any political figure as is alleged.
While we share the grief of Mr Maxwell’s family – and I sincerely sympathize with them for their loss – Mr Maxwell’s death ought not to be linked to the charges instituted against him by the GRA. This I must emphatically state for the following reasons:-
Mr Maxwell was registered for Value Added Tax (VAT) and was therefore obligated to discharge his liabilities under the Value Added Tax Act No. 10 of 2005. These attendant liabilities included
:-The collection of VAT on behalf of the state from patrons who would have attended these live entertainment events hosted by Mr Maxwell. These collections I must hasten to add were not those of Mr Maxwell but held in trust by him for the state;
in accordance with further liability under the VAT Act he was required to remit such sums collected not later than 20 working days in the subsequent month. In this regard it is to be noted that Mr Maxwell could have claimed the VAT actually paid by him when arranging for the holding of the entertainment on each occasion by taking out same from those sums collected;
In addition Mr Maxwell had the liability of filing a monthly tax (VAT) return on or before the statutorily prescribed date.
Mr Maxwell had failed and/or refused to discharge some of his obligations under the act, that is to say, he had failed to file his tax return for the tax periods November 2008 to August 2009 (ten periods). Consequently, the GRA instituted ten charges against Mr Maxwell for his non-compliance with his statutory obligation. It is apposite to point out that Mr Maxwell was not charged for not remitting the VAT held in trust by him, since without the relevant returns being filed by him the authority was not in a position to make any such determination much less file charges for such offences.
It should be noted that the maximum penalty for each of these charges is fifteen thousand dollars ($15,000) in accordance with section 72 (1) of the act. The imposition and determination of the quantum of fine to be imposed, in the event of a conviction is at the discretion of the sitting magistrate, and Mr Maxwell’s liberty was not in direct jeopardy since the penal section of the act does not have an imprisonment term for this offence.
It is now for the reasonable, rational man to take a subjective step in Mr Maxwell’s shoes to determine whether the aforementioned was sufficient for him to commit the act of suicide.
I would hasten to add that this letter is only intended to clearly state the relevant facts pertaining to the law. In parting I would like to say that the GRA will continue to discharge its mandate without fear or favour in the interest of the people of Guyana and I would further encourage the public to dutifully ensure the accurate and timely discharge of their tax obligations.
I would wish to state for future reference that media releases and queries should be directed to the Publication Relations Unit of the Communication and Tax Advisory Services Division of the Guyana Revenue Authority located at 210 E Charlotte and Albert Streets, Georgetown. They can also be reached on telephone numbers 227-3680 ext 200, 222 or 252.
Yours faithfully,
Khurshid Sattaur
Commissioner-General
Guyana Revenue Authority
