High Court Quashes GRA Tax Assessments on Mohamed Family’s Luxury Vehicles

The High Court has ruled in favour of members of the Mohamed family, setting aside tax assessments totalling nearly $800 million imposed by the Guyana Revenue Authority (GRA) on two luxury vehicles and permanently restraining the tax agency from seizing the vehicles or enforcing the disputed assessments.

In separate judgments delivered on Thursday, Justice Gino Persaud upheld judicial review applications brought by Hana Mohamed and Bibi Mohamed, finding that key decisions made by the GRA were unlawful, unreasonable and beyond the powers conferred under the Customs Act.

The proceedings arose after the GRA revoked tax exemptions previously granted for a 2023 Rolls-Royce Cullinan and a used 2020 Ferrari 488 and subsequently assessed additional taxes of $320,064,242 and $479,743,489, respectively.

Justice Persaud quashed the tax assessments and issued permanent injunctions preventing the GRA, its officers and agents from seizing or detaining either vehicle or taking any steps to recover the disputed taxes.

In Hana Mohamed’s case, the court ruled that the GRA acted unlawfully by imposing conditions requiring that the Rolls-Royce be used solely as her primary mode of transportation and that she report to the authority every six months with the vehicle’s registration, insurance and certificate of fitness.

Justice Persaud found those conditions were not authorised under the Customs Act and described them as arbitrary, unreasonable and ultra vires. He also overturned the GRA’s decision revoking Hana Mohamed’s tax exemption and its directive requiring the vehicle to be surrendered to the agency’s Law Enforcement and Investigative Division.

In the matter involving Bibi Mohamed, the court similarly quashed the GRA’s decision to impose $479.7 million in additional taxes, nullified its demand that the Ferrari be surrendered and set aside the revocation of tax exemption letters issued in 2022 and 2023.

However, Justice Persaud ordered that the issue concerning Bibi Mohamed’s temporary absences from Guyana be remitted to the Commissioner General of the GRA for reconsideration.

The judge held that the Commissioner General had failed to properly exercise his discretion in considering the explanations provided for those absences. He directed that any fresh decision must be made lawfully, fairly and rationally, after giving her an opportunity to be heard and considering all relevant factors.

Justice Persaud emphasised that his ruling does not require the Commissioner General to decide the matter in Bibi Mohamed’s favour, but that any new determination must comply with the law.

The court also restrained the GRA from pursuing forfeiture proceedings or acting on the March 2025 tax assessment while that aspect of the matter is reconsidered.

In both matters, the GRA was ordered to pay costs of $750,000 to each applicant on or before August 13, 2026.

The Mohamed family was represented by attorneys Siand Dhurjon and Damien DaSilva. Appearing for the GRA were Senior Counsel Robin Stoby and Anand Ramlogan, together with Sanjeev Datadin, Jason Moore, Fiona Hamilton, Ornise Gordon, Judy Stuart-Adonis and Martha Halley.

Reacting to the rulings, Leader of the Opposition and leader of the We Invest in Nationhood (WIN), Azruddin Mohamed, welcomed the court’s decision.

“Yet again another victory against the wicked and vindictive PPP Government, thanks to Almighty God and our legal team Siand Dhurjon and Damien Dasilva,” Mohamed said.

He added, “Imagine Jagdeo, Irfaan and Anil wasted millions of taxpayers’ money to hire more than 10 lawyers to fight their vindictive case and lost.”

The GRA has not yet publicly indicated whether it intends to appeal the High Court’s decision.