Businessman Azruddin Mohamed and others connected to him are accused of undervaluing the value of vehicles to pay less taxes and breaching the conditions under which they were granted tax exemptions.
Azruddin’s father, Nazar “Shell” Mohamed, had said a legal response would be made. Contacted by the News Room, Mr Mohamed pointed to his attorney Siand Dhurjon. The attorney told the News Room that those accused have written the GRA, requiring it to provide reasons and justification in evidence and law regarding the claims.
The GRA’s case against Azruddin Mohamed was triggered by the businessman’s Facebook posts in which he posted receipts showing that he had paid the GRA over $98.6M in taxes two Land Cruisers and a Lamborghini. The GRA then wrote Azruddin, stating the the taxes he paid were based on the value of the vehicles he submitted, and it had found these were undervalued.
Azruddin Mohamed, popular on social media, has been cited in three cases. These relate to undervaluation of vehicles.
There have been questions about why the GRA is raising the matter now.
Guyana has a voluntary tax compliance system whereby upon import, a declaration is submitted with values as declared by the importer, and taxes are self-assessed on this basis and paid thereon on the values so declared.
The GRA, utilizing principles as underpinned by the WTO/WCO, by tax legislation and by Anti-Money Laundering regulations thereafter would verify the true acquisition value/cost of the said imports, and make the necessary adjustments to the applicable collectible tax.
Further, the Customs Act specifies that proceedings under the law may commence at any time within seven years after the date of the offence. The vehicles in questioned were acquired between 2020-2023 and are part of the fleet of vehicles in the possession of the Mohamed’s.
Photo: Team Mohamed’s/Facebook
In the case of Azruddin Mohamed, he was told by the GRA to pay the additional amounts.
The cases against Azruddin Mohamed and those connected to him for the vehicles acquired are set out below:
Azruddin Mohamed: Re-assessment of Custom Duty and Tax on Lamborghini
Vehicle: 2020 Lamborghini Roadster PZZ 4000
Facts: GRA carried out an investigation and found that the value of the vehicle declared by Mohamed is inconsistent with values of similar vehicles with the same specifications.
GRA contention: GRA determined that given the undervaluation it found, Mohamed needs to pay additional taxes of $371. 781, 167.
Azruddin Mohamed: Re-assessment of Custom Duty and Tax on Land Cruiser
Vehicle: 2021 Toyota Land Cruiser PAB 4000
Facts: The GRA investigated and concluded that there were reasons to doubt the truth and accuracy of the valuation.
GRA contention: Given the undervaluation, the GRA claims an additional $24, 641, 271.
Azruddin Mohamed: Re-assessment of Custom Duty and Tax on Land Cruiser
Vehicle: 2021 Toyota Land Cruiser PAB 4000
Facts: The GRA investigated and concluded that there were reasons to doubt the truth and accuracy of the valuation.
GRA contention: Given the undervaluation, the GRA claims an additional $24, 641, 271.
Hana Mohamed: Breach of Tax Exemptions on $479M Ferrari
Vehicle: 2020 Ferrari 488
Facts: Hana Mohamed was granted tax exemption for the importation of the vehicle.
GRA contention: Hanna Mohamed breached the conditions under which she was granted tax exemption in three ways:
She did not live in Guyana for 183 days annually from the time she applied for the tax exemption
She failed to report to the GRA every six months with the vehicle and relevant documents
The vehicle is not being used for the intended purpose with which she applied for the tax exemption
Notes: The Customs Act requires that those granted exemption maintain legal residence in Guyana for five years from the date of registration of the vehicle. They must also reside in the country for 183 days each year until the five-year period expires. Further, the vehicle must remain in their possession and cannot be leased, transferred or sold within five years of registration. The vehicles must be used by the individuals as their primary mode of transportation and must report to the GRA with the vehicle every six months.
Next steps: Hana Mohamed was required to show why the GRA should not demand from her the $479, 743, 489 which was foregone in Customs Duty and Taxes.
Bibi Mohamed: Breach of Tax Exemptions on $320 million Rolls Royce Cullinan
Vehicle: 2023 Rolls Royce Cullinan PAE 500
Facts: Bibi Mohamed was granted tax exemption for the importation of the vehicle.
GRA contention: Bibi Mohamed breached the conditions under which she was granted the tax exemption in two ways:
She failed to report to the GRA every six months with the vehicle and relevant documents
The vehicle is not being used for the intended purpose with which she applied for the tax exemption
Next steps: Bibi Mohamed was required to show why the GRA should not demand from her the $320, 064, 242 which was foregone in Customs Duty and Taxes
Leslie Khan: Breach of Tax Exemptions on $61 million Land Rover
Vehicle: 2023 Land Rover, Range Rover PAC 9000
Facts: Leslie Khan was granted tax exemption for the importation of the vehicle.
GRA contention: Lanna Mohamed breached the conditions under which she was granted the tax exemption in two ways:
Khan failed to report to the GRA every six months with the vehicle and relevant documents
The vehicle is not being used for the intended purpose with which she applied for the tax exemption
Next steps: Leslie Khan was required to show why the GRA should not demand the $61, 485, 982 which was foregone in Customs Duty and Taxes.
The persons listed above were written to by GRA and given 14 days to reply. As noted at the outset, those accused by the GRA have since written to the Authority seeking reasons and justification in evidence and law.
The post Details of the GRA’s case against the Mohamed’s for tax evasion and breach of conditions of tax exemption appeared first on News Room Guyana.
