GRA orders Dipcon to pay $527.84M in taxes with immediate effect

According to the Guyana Revenue Authority (GRA), Dipcon Engineering Services Limited owes the State $527,846,657 in taxes and is required to make this payment with immediate effect.

This was outlined in a letter of garnishment that was sent to Finance Secretary Michael Joseph by GRA Commissioner-General Godfrey Statia. Dipcon, located at Non Pariel Road, Coldingen, Industrial Site, East Coast Demerara, also received a copy of the letter.

Furthermore, the tax boss noted that in this instance, he will be invoking the power of garnishment that is vested in him under Section 102 (1) and (2) of the Income Tax Act.

Section 102 (1) states, “When the Commissioner-General has knowledge or suspects that a person is or is about to become indebted or liable to make a payment of tax under this Act, he may, by registered letter or by letter served personally, require such first-mentioned person to pay the monies otherwise payable to such second-mentioned person in whole or in part to him on account of the liability of the second mentioned person under this Act.”

Section 102 (2) goes further to state, “The receipt of the Commissioner-General for monies paid as required under this section shall to the extent of the payment be a good and sufficient discharge of the original liability: -(a) of the person who pays such monies to the Commissioner-General to the person liable to make a payment tax under this Act; (b) of the person liable to make a payment of tax under this Act to the Commissioner-General.”

The move by the revenue authority follows a gazetted order by President David Granger to prevent Finance Minister Winston Jordan from going to jail after the local courts had ruled that he must pay over US$2.2M to Dipcon or be imprisoned for 21 days.