GRA vows to combat abuse of duty-free vehicles for re-migrants; protect state revenue

The Guyana Revenue Authority (GRA) has issued a statement addressing misconceptions in the media regarding a recent ruling by the Chief Justice on the source of funding for tax exemptions related to duty-free vehicles for re-migrants from the United States.

While the GRA respects and will adhere to the court’s decision, the authority has clarified its stance on the matter and outlined concerns over the potential abuse of the re-migrant vehicle concession system.

The GRA emphasized that re-migrants are entitled to duty reductions on vehicle imports for personal use, subject to specific conditions.

These exemptions, which vary depending on the engine capacity of the vehicle, allow re-migrants to pay significantly reduced taxes—between 10% to 30% excise tax. For instance, a regular taxpayer importing a high-end luxury vehicle could pay upwards of $44 million in taxes, while a re-migrant could be taxed as little as $6 million for the same vehicle, depending on its engine size.

However, this concession has been increasingly exploited by unscrupulous individuals, including auto dealers, who lure potential re-migrants into the system for monetary gain. These individuals often travel to Guyana, apply for re-migrant status, and acquire luxury vehicles only to leave the country soon after. Alarmingly, many applicants lack sufficient financial resources, and some even fail to meet basic legal requirements, such as having a bank account, tax records, or a driver’s license in their country of origin.

The GRA has identified a troubling pattern where applicants, initially showing little to no financial activity, suddenly experience large cash deposits in their accounts—often from unknown sources—just before or after receiving approval for the tax concessions. This has led to significant revenue losses for the state, as high-end vehicles are then sold or transferred to ineligible individuals through powers of attorney or possession.

The authority is also concerned about the involvement of employees from certain treaty-exempt organizations and public servants in this growing trend. As a result, the GRA has invoked the principle of “he who asserts must prove,” requiring applicants to provide a verifiable source of funds for the vehicle purchase.

The GRA has made it clear that it takes its role as a supervisory body seriously, especially in relation to the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act. The authority is legally obligated to monitor suspicious transactions and report them through Suspicious Activity Reports (SARs) in line with international tax and financial information-sharing agreements.

In light of the ruling, the GRA is appealing the decision, citing the significant tax implications for the state and its responsibility under the relevant acts. The authority is committed to exploring all available legal avenues to protect public revenue and ensure the integrity of the re-migrant concession system.

The GRA has also urged the public to report any suspected abuse of the system, stressing that individuals found guilty of defrauding the state could face severe penalties, including fines or imprisonment. The public can confidentially report such activities by calling the GRA at the designated numbers, and those who provide information leading to successful investigations may be rewarded in accordance with the provisions of the Customs Act.

The GRA reiterated its commitment to upholding the nation’s tax laws and ensuring that any attempts to undermine the system through fraud or exploitation are met with the full force of the law.