GRA’s unyielding stance against Exxon’s tax fight is inspiring
The great American philosopher and statesman, Benjamin Franklin, once said “…in this world, nothing can be said to be certain, except death and taxes.” It is ironic that another set of Americans are dismissive that the certainty of taxes, and even more heretically, that the full extent of taxes does not apply to them. This is as interpreted by them, under circumstances conveniently and curiously defined by them. This is the contention of Exxon, with its Guyana affiliate, EEPGL, moving to the Guyana High Court for judicial relief. The company is going to the mat over the $4.223billion withholding tax assessment bill delivered in its mailbox by the upstart and aggressive Guyana Revenue Authority (GRA).
In the briefest and simplest terms, Exxon’s tax fight with the GRA revolves around what constitutes “technical fees” and “beneficial owner of…income” paid” and “income from rentals”, and whether the withholding tax rate should be “10% or 20%”, and as all these should be interpreted under a relevant Convention. The bottom line is that GRA is sticking to its guns and insisting that the tax withholding assessment rate of 20% it employed is right, and that another $4.223billion is still due. I am awed by this unyielding stance of the GRA, and I applaud it. Somebody has got to have the guts to battle for us. What Commissioner Statia and the GRA are doing is what Executive Director Parsram and the EPA should be making their mantra and mission in efforts to curb Exxon’s excesses, sneaky rip-offs.
As much as it represents a handsome payday, no Guyanese lawyer or Guyanese law firm should consent to stand in advocacy for this company. To my chagrin, I recognize that that last exhortation is water on duck’s back, and falls on deaf ears. This is what transforms what Godfrey Statia and the GRA is doing. How they lead the way in drawing a line in the sand for, taking a stand for, and leading the charge for all Guyanese citizens against America’s leviathan, Exxon. All of this makes the GRA stance so much more inspiring. I appreciate that this is a David versus Goliath fight, but slingshots have slowed and felled many a foe, and their utility is now beyond dispute.
Sincerely, GHK Lall