The Guyana Revenue Authority (GRA) is calling on Scotia Bank to cough up over $1.1B in Corporation Taxes which it assessed to be due from 2011 to 2017.
The premise of the GRA’s additional assessment is that the Bank incorrectly claimed provision for loan loss expense as a tax-deductible expense citing Section 16 (1) of the Income Tax Act Chapter 81:01. The amount challenged by the GRA represents approximately 99 percent of the Bank’s loan loss expense over the period assessed.
The Bank, however, does not agree with the GRA’s position regarding the deductibility of loan loss provision and has since objected to the additional assessment. Based on professional advice received, Management believes that there is a high probability of a successful appeal. This was noted in its financial statements for 2018. (Use this link to access full report: https://gy.scotiabank.com/
Last month, GRA Commissioner General, Godfrey Statia had said that local banks such as Citizens Bank, owed over $4B in Corporation Tax. But the Guyana Bankers Association is disputing this and is currently engaging legal minds to challenge the full extent of the assessments since Statia is not prepared to make any adjustments on the said issue. Be that as it may, the Guyana Standard was reliably informed moments ago that both parties have agreed to meet on the matter soon.
