The Guyana Revenue Authority (GRA) has launched a widespread campaign to detain luxury vehicles involved in a multi-million dollar tax evasion scheme. This operation, which began in December 2024, targets vehicles for which false declarations were made, particularly regarding engine capacity.

Key Details of the Tax Evasion Scheme

• Unscrupulous importers and auto dealers falsely declared engine capacities of luxury vehicles to evade taxes.
• The racket is estimated to have cost hundreds of millions in lost revenue for the state.
• GRA has commenced detaining vehicles with false declarations.
• Individuals involved are urged to voluntarily come forward to pay full applicable taxes and penalties.

GRA’s Response and Actions

The GRA has initiated a large-scale tax compliance operation to address this issue:

1. Vehicles identified with false declarations will be detained or seized.
2. Full applicable taxes and penalties must be paid immediately to avoid seizure.
3. Individuals making or submitting incorrect declarations may face prosecution.
4. The agency is offering an opportunity for voluntary compliance to avoid legal consequences.

Implications for Vehicle Owners and Importers

• Those who come forward voluntarily will not face prosecution or vehicle seizure.
• Importers are urged to visit the GRA headquarters at 200-201 Camp Street, Georgetown.
• Contact can be made at 225-5061 ext. 2501-2508 to begin the regularization process.

Broader Context and Similar Schemes

This crackdown follows a recent warning from the GRA about another scam involving remigrants:

• Overseas Guyanese were being recruited to pose as remigrants for duty-free vehicle concessions.
• Remigrants can pay significantly reduced taxes on vehicle imports (10%, 20%, or 30% excise tax).
• Normal taxpayers may pay over $44 million in taxes for high-end vehicles, compared to a maximum of $6 million for remigrants.

Conclusion

The GRA’s efforts to combat tax evasion highlight the agency’s commitment to ensuring fair compliance in Guyana’s automotive import sector. This operation serves as a reminder of the importance of accurate declarations and the consequences of attempting to circumvent tax laws.