Demerara Distillers Limited (DDL) yesterday said that an “amicable settlement” has been reached with the Guyana Revenue Authority (GRA) in a longstanding dispute over Consumption Tax which will see it paying $1.5b to GRA to settle all claims up to March 9, 2016.
In a statement, DDL said the settlement follows a legal battle between DDL and GRA dating back to 2002 and heightened by a Consumption Tax assessment against DDL by then Commissioner General Khurshid Sattaur in January, 2009, in the sum of $5.3b. This assessment was immediately challenged in the High Court by DDL. The release said that DDL and GRA were recently able to recommence negotiations for a resolution of the methodology for the calculation of the Consumption Tax (and its successor, the Excise Tax), and arrive at an agreement to fully and finally settle all claims by the GRA and liability by DDL for both Consumption and Excise tax up to March 9, 2016 in the sum of $1.5b. This sum is payable over twelve months and the release said that DDL, in good faith, recently effected payment of $100m in compliance with the settlement terms. In 2002 DDL had lodged a legal challenge against the GRA on the methodology used for the assessment of Consumption tax.
In February 2005, the High Court found in favour of DDL. The GRA subsequently appealed that
