GYSBI Wins Withholding Tax Appeal

November 17, 2025: Chancellor Roxane George today granted a tax appeal filed by Guyana Shore Base Inc (GYSBI) in 2021 against the Guyana Revenue Authority (GRA), setting aside the GRA’s decision to impose withholding tax against GYSBI on payments for management and professional services made to three foreign contractors, Pacific Rim Constructors Singapore, LED Offshore Ltd and LEAD Engineering Inc.

The GRA assessed withholding tax in the amount of G$35,496,147 against GYSBY for 2018 and 2019 years of assessment pursuant to Section 39(1) of the Income Tax Act. GYSBI’s attorney, Mr. Devindra Kissoon of London House Chambers, submitted to the Court, that no withholding tax was payable since these companies were all overseas based, had no offices or personnel based in Guyana, and that the payments arose overseas since they were made overseas for services executed or rendered overseas. GYSBI argued therefore that pursuant to the provisions of Section 39 (1)(b) of the Income Tax Act, no withholding tax was payable in relation to payments made to the foregoing companies.

The GRA argued that withholding tax was payable since GYSBI’s income was derived from its Haliburton project and other projects within Guyana, withholding tax was payable. The GRA also argued that since the payments arose in Guyana withholding tax was payable.

The Court disagreed with the GRA’s submissions, labelling them as “erroneous”, stating not only is the origin of the payment irrelevant, but the fact that the payments were made from Guyana was not determinative.

The Court, in agreeing with Mr. Kissoon’s argument, found that for withholding tax to be charged, the payment cannot relate to income that is derived outside of Guyana and that the tax can only be applied to income payable in Guyana which derived from business engagements or activities within Guyana. The found that the GRA submitted no evidence that the companies were conducting activities within Guyana, and in relying on the evidence submitted by GYSBI through its corporate secretary Ms. Yolander Persaud, adjudicated that withholding tax was payable.

The Court ordered that the GRA repay GYSBI the sum of G$35,496,147, plus interest at the rate of 12% per annum forthwith, and ordered costs against the GRA in the amount of G$1,000,000 to be paid on or before December 29, 2025. Section 86(10) of the Income Tax Act renders the decision final and therefore unappealable. A copy of the judgment is attached.