The Guyana Revenue Authority (GRA) says it has obtained a High Court ruling ordering the industrial lubricants distributor, SOL Guyana, to pay more than GUY$2.7 billion (One Guyana dollar=US$0.004 cents) in unpaid taxes.

“The Revenue Authority also obtained a judgment against the Company for Corporation Tax owed, in the sum of two billion seven hundred and thirteen million two hundred and twelve thousand two hundred and fifty-one dollars ($2,713,212,251.00) together with penalties and interest until the date of payment,” the GRA said in a statement said.

The High Court had also refused an application made by the fuel importer for an Order seeking an extension of time to file a corporate tax appeal against the GRA in relation to taxes calculated for several years.

The Court ruled that SOL Guyana Inc. failed to satisfy the precondition for a tax appeal, as set out by Section 98 of the Income Tax Act. The Revenue Authority had argued, among other things, that the company has no right of appeal under Section 86 of the said Act, and that no extension of time beyond the lapse of the statutory period could be considered where there is no right of appeal.

Further, the Court ruled that “the full payment of disputed taxes or the lodging of a bond or a guarantee to the satisfaction of the Commissioner-General is a precondition before the right of appeal against an assessment under the Income Tax Act can be exercised.”

The Court ruled that SOL Guyana Inc. failed to satisfy the precondition for a tax appeal, as set out by Section 98 of the Income Tax Act.

The Revenue Authority had argued, among other things, that the company has no right of appeal under Section 86 of the Act, and that no extension of time beyond the lapse of the statutory period could be considered where there is no right of appeal.

In March, GRA said it was investigating SOL for importing and clearing millions of liters of fuel at duty-free rates for ExxonMobil’s local affiliate, Esso Exploration and Production Guyana Limited (EEPGL), but was failing to deliver the fuel to the oil company. EEPGL is entitled to tax exemption on fuel imported for its operations.

GRA had claimed then that SOL owed GUY$2.6 billion in taxes by abusing EEPGL’s exemption letters.

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