Chief Justice Roxane George has struck down the Guyana Revenue Authority’s (GRA) requirement for a remigrant to disclose the source of funds used to purchase a vehicle under a duty-free concession, deeming it illegal.
The ruling, delivered Tuesday morning, also ordered the GRA to release the vehicle and grant the remigrant the applicable tax exemptions.
The case involved Reaz Manjoor, who returned to Guyana in August 2023 after residing in the United States for over a decade.
Upon his return, Manjoor applied for remigrant status and, on August 23, 2023, was officially granted this status by Minister of Foreign Affairs, Hugh Todd.
As a remigrant, Manjoor became eligible for preferential tax conditions on personal effects, including his vehicle, a 2023 Toyota Land Cruiser LC300.
Under the remigrant scheme, individuals are entitled to significantly reduced taxes on vehicle imports. For instance, Manjoor would have only had to pay 30% excise tax, amounting to approximately $4.3 million, compared to the nearly $44 million in taxes that non-remigrants would incur.
However, despite providing all required documentation, including bank records and wire transfer details, the GRA withheld approval of his tax exemption, questioning the legitimacy of his funding source.
The GRA’s suspicions prompted further requests for information, including questioning the origin of funds used by Manjoor to purchase the vehicle. Manjoor complied with the GRA’s demands, providing extensive documentation, including affidavits, a copy of the cheque, and even a letter detailing the funds sent by his aunt.
However, the GRA continued to delay processing his tax exemptions and vehicle clearance, citing concerns over the credibility of his financial documents.
In April 2024, GRA’s Deputy Commissioner, Gavin Low, informed Manjoor that the GRA was not satisfied with the documentation provided and insisted on further verification of the source of funds.
This decision was met with frustration by Manjoor, who, through his attorney, Siand Dhurjon, sent a letter in August 2024 threatening legal action against the GRA if they did not release the vehicle and approve the tax exemptions.
Despite the legal threat, the GRA failed to respond, prompting Manjoor to initiate legal proceedings in October 2024. In response, the GRA argued that they needed to verify the legitimacy of the funds to ensure they were not proceeds from illegal activities like money laundering or tax evasion.
However, Dhurjon contended that there was no legal requirement for remigrants to disclose the source of their funds, and that the GRA’s actions were outside the scope of their administrative authority. Dhurjon further argued that the GRA had already acknowledged Manjoor as a qualifying remigrant, and had not disputed the facts presented by his client.
Following the decision, GRA counsel, Ms. Nicklin Belgrave, sought leave to appeal, but this request was denied by the Chief Justice, who stated, “This here is beyond the pale. You have no law, there is no provision.”
