Imbert: Petrotrin owes Govt $1.3 billion in taxes

This information is contained in a statement issued yesterday by the Finance Ministry in the wake of figures on Petrotrin’s debt which Finance Minister Colm Imbert outlined in the House of Representatives on Monday and in the Senate on Tuesday.

The ministry explained this statement was issued because Imbert wished to clarify the net amount of taxes and royalties which Petrotrin owes the Government at this time.

The ministry indicated that for the year to date 2017, Petrotrin has confirmed that it owes the Government a total of $2.044 billion in unpaid taxes. These taxes are made up of Petroleum Profits Tax, Supplementary Petroleum Tax, Value Added Tax, Royalties, Production Levy and licenses. The ministry also said Petrotrin has indicated that its computation of the fuel subsidy owed by the Government to the company is $775 million.

The ministry said when the figures of $775 million and $2.044 billion are reconciled, the figure of $1.269 billion is the result. The ministry further stated that this figure of $1.269 billion is separate and apart from the $4.2 billion in losses in the refinery over the period 2011 to 2016 which must now be properly shown in Petrotrin’s books as a “loss” rather than as a “deferred tax asset.” However in a separate statement, former energy minister Kevin Ramnarine claimed the statement Imbert made in the House about Petrotrin is misleading.

According to Ramnarine, Petrotrin’s external auditor, KPMG, signs off annually on the company’s audited accounts, the accounts are laid in Parliament and made public.

“Nothing was hidden,” Ramnarine said.

He noted that prior to 2010, when the People’s Partnership (PP) assumed office, KPMG approved the carry forward of losses stemming from large investments in the refinery upgrades such as the Gasoline Optimization Programme, the World GTL and the Ultra-Low Sulphur Diesel projects.