President Ali criticizes Persaud ruling, praises George’s judgment on post-clearance taxes

President Dr. Mohamed Irfaan Ali on Wednesday criticized a High Court ruling by Justice Gino Persaud that barred the Guyana Revenue Authority (GRA) from imposing post-clearance taxes in the luxury vehicle case involving U.S.-indicted businessman Azruddin Mohamed, while welcoming the subsequent ruling by Acting Chancellor Justice Roxane George, which reaffirmed the authority of the GRA to conduct post-clearance tax assessments.

Justice Persaud’s ruling, delivered on November 14, 2025, found that the GRA could not legally reassess taxes after imports had been cleared and duties paid. The decision affected three vehicles imported by Mohamed in 2020, including a Lamborghini Aventador and two Toyota Land Cruisers, totaling GY$421,057,712 in post-clearance taxes.

The judge ruled that the GRA had no legislative authority under the Customs Act or its Fifth Schedule to impose additional taxes after clearance, and quashed the agency’s demand for Mohamed to surrender the vehicles. He also ordered the GRA to pay costs of $750,000 to Mohamed by December 31, 2025.

President Ali described the ruling as “perverse, internally inconsistent and disconnected from both established custom practice and the evident intention of the Custom Act 82:01.”

He emphasized that it obstructed the GRA’s ability to recover taxes legitimately owed to the state under multiple legislative frameworks, including the Income Tax Act, Customs Act, Property Tax Act, and Companies Act.

“It’s a ruling that was so flawed that it exposes our taxation system to criminality and fraud. For a matter of fact, the ruling by Justice Gino Persaud is viewed by many professionals as one that can incentivize the falsification of documents. There is something that is called post clearance. There is something in post clearance that inherently deals with the verification of values and the ability of the revenue authority after verification to apply the right taxes,” President Ali said.

The President welcomed Justice Roxane George’s November 17 ruling in a separate case (Zhangzhen Yu vs GRA), which reaffirmed the GRA’s authority to conduct post-clearance audits and recover taxes found to be owed.

“However, I am pleased and the government welcomes the recent and highly consequential decision delivered on the 17th of November, 2025 by Madam Justice Roxanne George…Justice George’s ruling brings clarity to an area of significant public importance. The authority of the Guyana Revenue Authority to conduct post clearance assessments of imported consignments — her judgment is compelling, meticulously reasoned, intellectually rigorous and firmly rooted. Indeed, it is upholding the rule of law in both statutory interpretation and the practical necessities of modern customs administration. It stands as an exemplar of judicious thoroughness demonstrating a deep understanding of the customs framework, the evolution of trade facilitation practices and the responsibilities of a revenue authority charged with safeguarding the state’s fiscal interests,” he said.

President Ali noted that post-clearance audits are standard practice globally and have been endorsed by the World Customs Organization.

“As international trade has expanded and as the global community has moved decisively towards streamlined customs clearance, custom administrations worldwide have strengthened post clearance controls. The GRA has acted in step with global norms enhancing its capacity to verify the accuracy of declarations after goods have passed the port of entry. An approach endorsed by the World Customs Organization and now authoritatively affirmed by Justice George’s decision,” he said.

The President warned that if Justice Persaud’s ruling were allowed to stand, it could prevent the GRA from recovering taxes owed to the state, even in cases involving falsified documents.

“His ruling would bar the state from its rightful revenue. Such an outcome is wholly inconceivable in a lawful and orderly revenue system. It would render the customs administration toothless, incentivize dishonest declarations and deprive the state of significant revenue,” he said.

President Ali welcomed Justice George’s ruling as providing clarity and legal coherence, ensuring that the GRA can continue fulfilling its mandate without artificial constraints.