Latest update April 25th, 2024 12:59 AM
Mar 08, 2017 News
The Guyana Revenue Authority (GRA) is launching a pilot to implement the Trusted Trader Programme, which is a variant of the World Customs Organization (WCO)’s Authorized Economic Operator (AEO).
The programme in its initial stages will mainly target companies that have numerous transactions with the GRA for “Trusted Trader” status, the tax collection agency explained yesterday.
Once deemed as a “Trusted Trader” by the GRA, the company can benefit from a number of benefits. These include reduced processing, release, and clearance times for those eligible; reduced frequency or level of physical inspections and examinations and appropriate documentary and data requirements.
The businesses that have qualified to be a Trusted Trader will be issued three-year compliance certificates.
GRA yesterday also announced that it can consider issuing yearly tax exemption letters for manufacturing purposes as opposed to the requirement for application on a shipment-by-shipment basis. However, the criteria for the programme will be steep.
Among other things, the business will have to show a turnover of $1B annually with total taxes annually at least $500M.
According to GRA, while there would be companies who benefit from large volumes of tax exemptions which may be considered, they will have to show that they have complied with requirements.
Some of the compliance for businesses will include showing a history of filing timely tax returns for the last seven (7) years.
“The applicant must also have satisfied his tax obligations under all acts administered by the Revenue Authority for all years and has satisfied the Commissioner-General that he/she has paid all taxes due and payable, or made satisfactory arrangements to do so, at the time of applying for Trusted Trader status.”
GRA will also be looking to see if the businesses have proper audit history and no major issues with breaches with regards to false declarations.
According to GRA, companies that have immovable assets owned by the applicant and not subject to floating charges will be considered. Some sectors that are considered critical, including companies that deal with medical supplies, will be given preference.
“It should be noted that the Commissioner-General (Godfrey Statia) reserves the right to determine who will be deemed as a “Trusted Trader” for GRA’s purposes based on the level of risk to the revenues and in keeping with the laws and mandate of the GRA. Companies meeting these eligibility requirements who are desirous of being deemed as “Trusted Traders” for GRA purposes are encouraged to make a formal application to the Commissioner-General with justification for consideration.”
In the past, GRA had developed a system of making spot checks on containers that were coming for businesses that had a questionable history of under-declaration or under-invoicing.
GRA’s Customs over the years has built up a reputation of corruption, with new management of the agency, in place since last year, vowing to clean up.
In recent years, businesses have been clamouring for speedier processing of containers on the wharves, with a number of options being mulled by consecutive administrations.
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