The Guyana Revenue Authority (GRA) has launched a full scale investigation into rampant transfer pricing activities in the local manufacturing sector.
GRA Commissioner General, Godfrey Statia confirmed that Banks DIH and Demerara Distributors Limited (DDL) are already being looked at by assigned officers.
Statia said, “These checks have already started. We are not only looking at those two companies. We are looking at some popular hotels in Georgetown as well. Transfer pricing is an area where we are losing millions of dollars in refunds.”
The tax chief added, “I am training my officers every week to detect such practices. Very soon this will be in the past or at least it would be rooted out under my watch.”
In a previous interview with this news outlet, the GRA boss revealed that for more than 20 years, the practice of transfer pricing by companies here was left unchecked.
The Chartered Accountant said that while transfer pricing is practiced by most businesses in various sectors, the most prone to this behaviour has been the manufacturing sector. In fact, the tax chief expressed that the manufacturing sector’s engagement in this notorious exercise involves the billions of dollars.
(See link for details on the previous story: http://www.guyanastandard.com/2018/05/16/local-manufacturers-robbing-guyana-of-rightful-taxes-through-transfer-pricing-mechanisms/)