Sunday, September 16, 2007

Given the waivers granted to Asian timber companies in 2006, what investments did they make and what taxes did they pay?

http://www.stabroeknews.com/index.pl/article?id=56528895

Given the waivers granted to Asian timber companies in 2006, what
investments did they make and what taxes did they pay?
Stabroek News,
Saturday, September 15th 2007

Dear Editor

The list of beneficiaries of 'Revenue Remissions' granted by the
Government of Guyana in 2006 which was published in the Kaieteur News
on 9.9.07 makes for interesting reading. The Guyana Revenue Authority
(GRA) waived G$379 million in taxes due by 11 timber companies in 2006.
Out of that total 3 Asian loggers benefited from the waiver of G$325
million or 86 % of all waivers to timber companies.

Through your newspaper I would like to ask the following questions of
Go-Invest, GRA and the Ministry of Finance:

What total investment in Guyana in that calendar year was shown in the
audited accounts of the Asian recipients; how much of that investment
was brought in from outside the country; and what profits, capital sums
or payments for management charges from the expatriate owners were
exported outside Guyana in the same period of time.

Now that Guyana has waived G$325 million to these Asian loggers, what
taxes did they pay over the same period?

How many Guyanese registered on the NIS roll did these 3 Asian loggers
employ during 2007?

One of the loggers, Jaling, obtained a waiver of approximately G$18
million in 2007. This is the same company that sold a 51 per cent
equity interest in our forests to Seapower Resources International
Limited for a consideration of HK$154 million (US$19.8 million). Like
selling the Brooklyn Bridge. Did the GRA request a refund from Jaling
of G$18 million after it read about that company's illegal transactions
in the same period?

Yours faithfully,

Mahadeo Kowlessar

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