GEORGETOWN – President Dr Irfaan Ali has openly rejected last week’s explosive ruling by Justice Gino Persaud in the high-profile luxury-vehicle tax case involving the Guyana Revenue Authority (GRA) and businessman Azruddin Mohamed, arguing that the judgment strikes at the heart of the country’s tax-enforcement system.
Justice Persaud ruled that the GRA had no legal power to impose post-clearance assessments on vehicles already entered, cleared, and taxed, even in circumstances where allegedly fraudulent documentation had been used. The decision stunned many observers and immediately triggered debate over the limits of the GRA’s authority.
But on Monday, acting Chancellor of the Judiciary Roxane George delivered a contradictory ruling in a separate matter involving businessman Zhangzhen Yu, affirming that the GRA does indeed have the authority to conduct post-clearance assessments and pursue additional taxes when warranted.
President Ali seized on that ruling on Wednesday evening, telling the country during a Facebook Live broadcast that post-clearance audits are not only standard but “critical” to the customs framework.
He said Justice Persaud’s finding would effectively block the GRA from recovering taxes owed to the State, creating what he described as “many obvious challenges” for revenue protection if it were allowed to stand.
“Justice George’s ruling brings clarity to an area of significant public interest,” President Ali said, making it clear that he supports the GRA’s move to appeal Justice Persaud’s decision.
Attorney General Anil Nandlall, SC, has also pushed back against the Persaud ruling. In a recent interview, Nandlall argued that Guyanese law explicitly empowers the GRA to issue post-clearance assessments years after importation if discrepancies are detected, especially in matters involving suspected under-invoicing or tax evasion.
As the legal showdown escalates, the GRA now heads to the Court of Appeal, setting the stage for one of the most consequential tax-law battles in Guyana’s recent history, one with major implications for enforcement, accountability, and billions of dollars in state revenue.
