High Court rules GRA acted unlawfully in Mohameds’ luxury vehicle tax dispute

High Court Judge Gino Persaud on Thursday ruled that the Guyana Revenue Authority (GRA) acted unlawfully, unreasonably, and beyond the powers granted to it under the Customs Act in the case regarding alleged taxes owed by the Mohameds pertaining to the importation of a Ferrari and a Rolls-Royce.

As such, he restrained the agency from taking enforcement action over the two luxury vehicles at the centre of the dispute.

The cases stemmed from judicial review proceedings filed by Hana Mohamed and Bibi Mohamed, following the revocation of previously granted tax exemptions and the imposition of substantial additional tax liabilities, along with demands that the vehicles be surrendered.

In the case of Hana Mohamed, the dispute centred on a 2023 Rolls-Royce Cullinan. The Court found that the GRA had acted outside its legal authority by attaching restrictive conditions to the vehicle’s tax exemption.

These conditions required that the vehicle be used solely as her primary means of transportation and that she reports to GRA every six months with documentation, including registration, insurance, and a certificate of fitness.

Justice Persaud ruled that such requirements were not authorised under the Customs Act and were arbitrary, unfair, unreasonable, irrational, and ultra vires.

As a result, the Court quashed the GRA’s decision to impose approximately $320,064,242 in additional taxes, set aside the requirement for the vehicle to be surrendered to the Revenue Authority’s Law Enforcement and Investigative Division, and overturned the revocation of the tax exemption letter.

The court further granted a permanent injunction preventing the GRA from seizing or detaining the Rolls-Royce Cullinan, initiating forfeiture proceedings, or taking any steps to recover the disputed taxes arising from its March 26, 2025, decision.

A separate ruling addressed the case of a 2020 Ferrari 488 owned by Bibi Mohamed. In that matter, the Court similarly quashed the GRA’s decision to impose $479,743,489 in additional taxes and nullified its demand that the vehicle be surrendered.

The Court also set aside the revocation of tax exemption letters issued in July 2022 and January 2023.
However, unlike the Rolls-Royce case, the Court remitted one issue for further consideration by the Commissioner General of the GRA.

This concerned whether Bibi Mohamed’s temporary absences from Guyana had been properly assessed.
Justice Persaud found that the Commissioner General had failed to properly exercise discretion in evaluating her explanations and directed that any fresh determination must be made lawfully and fairly.

However, the Court issued a permanent injunction preventing the GRA from seizing or detaining the Ferrari or pursuing forfeiture proceedings based on the disputed assessment while the matter is reconsidered.

In both cases, the Court ordered the GRA to pay $750,000 in costs to each applicant, to be settled by August 13, 2026. The Mohameds were represented by Attorneys Siand Dhurjon and Damien DaSilva.