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Commissioner General of the Guyana Revenue Authority, Khurshid Sattaur, has announced that there was increased compliance to the tax system during last year. Last year the GRA engaged in activities to inform, educate and assist taxpayers to understand their rights, responsibilities and obligations with respect to the various tax acts and policies.The activities included conducting advisory and compliance visits to taxpayers and value added tax registrants.In addition, the GRA conducted seminars and information sessions for various stakeholder groups, publishing policies, airing television programmes and infomercials.But, according to Sattaur, there were some challenges during the year.Among them were the late and non-filing of returns and failure of some businesses to issue tax invoices and remit tax, which led to the GRA seeking redress through the courts.The frequent interventions by the government to reduce the rate of tax applicable to petroleum products last year have resulted in a loss in revenue of in excess of $3.5B.However, the Commissioner General is optimistic about the performance of the agency.Last year as the price of fuel reached unprecedented heights, government adjusted the consumption tax on the product to enable Guyanese consumers to meet the high cost,Discount Air Max, especially for gasoline.The adjustments to the consumption tax during that period led to reduced revenue collection against that which was projected by the GRA.Despite this and other challenges, the Commissioner General described last year as a fairly successful one.In addition to the reduced revenue on petroleum products, other measures to offset cost of living impact from steep increases in the cost of consumer items, such as removing VAT from 32 additional items such as flour, posed significant challenges to the targets of the GRA.Several new initiatives were implemented as the organization focused on reorganising for greater efficiency and effectiveness.According to Sattaur, during last year the GRA was committed to change its organisational structure from one centered on type of tax to one centered on functions.The initiative formed part of the GRA component of the Government of Guyana/Millennium Challenge Corporation, Guyana Threshold Country Plan/Implementation Project.Under the two-year project, which commenced in January 2008, the GRA is receiving technical assistance to implement several tax reform measures aimed at improving the organisation’s efficiency and effectiveness in tax collection and revenue generation.Among the tax reform measures achieved include the implementation of a new functional type organisation; the establishment of a Tax Analysis Unit; development of a three year comprehensive training programme; and the establishment of an Intelligence and Risk Management Division.Also achieved were the establishment of a Debt Management Division, codification of tax laws, and the comprehensive review of the tax system.The implementation of the Total Revenue Integrated Processing System (TRIPS) at the Internal Revenue Department which has resulted in greater efficiency in the administration of taxes is another major achievement.The Commissioner General also pointed out that an automated system was implemented at the Licence Revenue Office that is linked to TRIPS to process transactions, and utilizes new security enhanced certificates, licences and other documents.In 2008, the Taxpayer Identification Number (TIN) was also successfully implemented at the Internal Revenue Department, increasing the GRA’s effectiveness to monitor payments of taxes and the filing of returns by all taxpayers.According to the GRA, a large number of taxpayers have been registered and issued with TINs.In addition, a central data processing and registration unit was established within the Value Added Tax building where all tax registration, data entry and returns verification will be done.
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