News Source Guyana Reports : In a landmark ruling delivered today, the High Court has quashed tax assessments totaling over $800 million imposed by the Guyana Revenue Authority (GRA) against Hana and Bibi Mohamed. Justice Gino Persaud declared the GRA’s actions regarding the importation and use of two luxury vehicles “unreasonable, arbitrary, irrational, unfair, and unlawful.”
The legal dispute stemmed from tax exemptions granted under Guyana’s re-migrant scheme. The GRA had accused the two women of breaching the terms of their duty-free concessions:
Hana Mohamed: The GRA sought $479.7 million in taxes on a 2020 Ferrari, alleging she failed to meet the mandatory 183-day annual residency requirement.
Bibi Mohamed: The GRA sought approximately $320 million in taxes on a 2023 Rolls Royce, citing a failure to use the vehicle as her “primary mode of transportation” and non-compliance with a six-month in-person reporting requirement.
Justice Persaud issued several critical orders today:
Quashing of Assessments: The court formally quashed the tax impositions against both individuals.
Permanent Injunctions: The GRA is now permanently restrained from seizing the Ferrari and the Rolls Royce.
Unlawful Conditions: The court flagged two specific GRA administrative conditions as illegal, noting they lack statutory backing under the Customs Act:
The requirement for re-migrants to report to the GRA with their vehicles every six months.
The requirement that a duty-free vehicle be used exclusively as the owner’s primary mode of transportation.
While the court has quashed the immediate tax assessments, it did not grant a blanket victory on the underlying tax liability. Justice Persaud has sent the matter back to the Commissioner General of the GRA with instructions to:
Afford a Hearing: Fairly consider the reasons provided by Hana Mohamed for her temporary absences from Guyana.
Act Lawfully: Exercise discretion in accordance with the law, ensuring all relevant matters are taken into account rather than treating tax imposition as an automatic, mandatory response without considering the applicant’s side.
Attorney-at-Law Siand Dhurjon, representing the Mohameds, hailed the ruling as a significant rebuke of the GRA’s recent enforcement practices, noting that the conditions flagged by the court have been imposed on many re-migrants without proper legal authorization.
The GRA has been ordered to pay $1.5 million in costs to the respondents.
