ExxonMobil Corporation’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) has issued the Guyana Revenue Authority (GRA) a notice of appeal for assessment of Withholding Taxes totalling $4.2B. The tax agency had said this was owed for the period January 2020 to July, 2021.
The facts of the case filed with the High Court state that the taxes are being levied against revenues paid to an SBM Offshore subsidiary registered in the United Kingdom and managing the Liza Destiny vessel.
The SBM subsidiary is Guyana Deep Water UK Limited (GDWUL). Guyana Standard understands that EEPGL paid over $40B to GDWUL as lease and charter fees. According to conventions signed between Guyana and the UK, payments from a company operating in one of those territories to the other, can only be taxed at 10 percent. In keeping with this, EEPGL said it has been making such payments to the Guyana Revenue Authority.
In spite of this, tax body has since insisted that it is still owed further sums since the Convention being relied on does not address revenues from rentals.
The other argument up for consideration was that the sums paid was for technical work and operations performed by GDWUL and, once again, under the provisions of the Convention, revenues for same only attract a 10 percent tax. GRA however disagreed with this reasoning and demanded that the taxes be paid in full.
It said EEPGL is free to object to this and to request a review of its position via the courts. The company has since exercised that right.
The taxes were owed for the period January 2020 to July, 2021.
I ask why wasn’t the company mandated to pay the taxes monthly or quarterly?
Doesn’t Guyana have any thinking person left, after thousands of East Indians fled this beautiful country because of the racism of the blacks?