Auditor General, Deodat Sharma has flagged what he perceives to be the poor management of investment agreements by the Guyana Revenue Authority (GRA), especially as it pertains to ensuring investors are keeping their promise to build local capacity in exchange for significant tax exemptions.
In this regard, Sharma noted in his latest report that a sample of 21 Investment Agreements (IAs) was examined during 2019. Seventeen were recommended by the Guyana Office for Investment (Go-invest) and four by Guyana Geology and Mines Commission (GGMC). He said that an examination of GRA’s records on “Revenue Loss by Beneficiary” revealed that of the 21 Investment Agreements, sixteen or 76% of the companies/business were up for renewal and expansion while five or 24% were new. He said that Investment Agreements that came into effect since the year 2010 saw companies getting $9.801 billion in taxes exemptions for the years 2010 to 2018.
Sharma was alarmed that these companies received exemptions for so long when it was only supposed to be for the completion of the project within one to three years.
Sharma subsequently recommended that the Authority conduct investigations to determine whether the businesses are in compliance with the Investment Agreement. In addition, he stressed that it must put measures in place to ensure businesses complete works in the stipulated time-frame as highlighted in the Investment Agreements.
