Alleged Tax Evasion by Guyanese Nationals

Nazar Mohamed and his son, Azruddin Mohamed

Introduction to the Allegations

GEORGETOWN, Guyana, CMC -The Guyana government says it has received information on the alleged multi-million dollar tax evasion by two Guyanese nationals and their company in exporting more than 10,000 kilograms of gold.

Attorney General Anil Nandlall said the United States, which imposed sanctions against businessman Nazar “Shell” Mohamed and his son Azruddin in June last year, had provided the information.

Response from the Department of Justice

“The DOJ (Department of Justice) has responded, and that is what I’m saying. We’ve received a large volume of information,” he Nandlall said, adding that the information had been provided at the Guyana government’s request, setting the stage for the Guyana Revenue Authority (GRA) and law enforcement agencies to take action based on the “sufficient volume of evidence, information, data, documents.”

Sanctions Imposed by the US

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) in June last year, said the sanctions had been imposed on the Mohameds, their company as well as designating two other entities, Hadi’s World and Team Mohamed’s Racing Team, for being owned or controlled by Mohamed’s Enterprise and Azruddin, respectively.

In addition, the US had also named the then-permanent secretary of the Ministry of Labour, Mae Thomas.

Gold Industry in Guyana

The US authorities say gold is one of Guyana’s main exports, but it remains a highly fractured industry, with small-scale gold mining operations accounting for a majority of the country’s gold production.

It said these small, family-owned businesses have informal relationships with more significant purchasers and traders like Mohamed’s Enterprise and that “once mined, Guyanese gold is sold and traded throughout international markets, including the United States, Canada, the United Arab Emirates, and the European Union.

Expected Action from the GRA and Police

Nandlall said that he expects the GRA to take action on tax evasion, and the police will also take action within their remit.

“They are going to act. They have formally communicated that to the Government of Guyana, and I presume that they will act at any time now,” he said, adding that Washington and Georgetown continued exchanging information on the allegations.

“The process is still ongoing, and we are supplying information, and they are supplying information,” he said.

Conclusion

The alleged tax evasion by Nazar Mohamed and his son Azruddin has led to a significant investigation by the Guyana government, with the support of the US Department of Justice. The case highlights the importance of cooperation between countries in combating tax evasion and ensuring that individuals and companies comply with tax laws.

FAQs

Q: What is the alleged tax evasion case about?

A: The case involves two Guyanese nationals, Nazar Mohamed and his son Azruddin, who are accused of evading taxes on the export of over 10,000 kilograms of gold.

Q: Which countries are involved in the investigation?

A: The investigation involves the Guyana government, the US Department of Justice, and other international authorities.

Q: What action is expected from the GRA and police?

A: The GRA is expected to take action on tax evasion, and the police will also take action within their remit.