The Mohamed family is taking legal action against the Guyana Revenue Authority (GRA) after being hit with a tax demand of over $900 million related to luxury vehicles imported into the country. The GRA has accused the family of breaching tax exemption terms and failing to comply with proper vehicle valuation procedures. The demand covers four high-end vehicles: a 2020 Ferrari 488, a 2021 Toyota Land Cruiser, a 2020 Lamborghini Roadster, and another 2021 Toyota Land Cruiser. The GRA has warned of potential seizure and other actions if the Mohameds fail to pay.
This tax dispute comes at a time of increasing tension between the Mohamed- Nazar “Shell” Mohamed and his son Azruddin Mohamed- and the People’s Progressive Party (PPP government. The family, long known for their political and business connections, particularly with the PPP, is now embroiled in a political fall-out resulting from a United States (U.S) sanction against the Mohameds and Government denial of business/contracts. The Government has cited the U.S sanction as its reason for withdrawing business. Added to that is the current battle over alleged tax discrepancies.
The GRA claims that the family violated tax exemption conditions related to the Ferrari 488, citing Hana Mohamed’s failure to meet the required residency period and report the vehicle as stipulated in the exemption.
Additionally, the GRA said it found discrepancies in the declared value of both Land Cruisers and the Lamborghini, arguing that the vehicles were grossly undervalued, resulting in the underpayment of customs duties and taxes. The tax agency has given the Mohamed family 14 days to either provide documentation to support their claims or pay the additional taxes.
In response, the family has expressed frustration, claiming that they are being unfairly targeted. Both Azruddin and his father Nazar Mohamed have stated that they are unsure why this investigation is taking place now, labeling it as “victimszation.” The family also believes that the scrutiny may be politically motivated, particularly since Azruddin Mohamed is expected to run for office in the upcoming 2025 elections.
Despite these claims, the Mohamed family has defended their actions, asserting that they have always complied with the law and paid their taxes. In a recent social media post, the family emphasised that Mohamed’s Enterprise is one of the largest taxpayers in the country, and that accusations against them are part of a deliberate campaign to tarnish their reputation.
This legal dispute with the GRA could signal further right in the Mohameds/PPP relationship, particularly as the PPP appears to be using the arm of the state to assert control over former allies or punish those it deems no longer in line with its interest.
