ExxonMobil allegedly paid no taxes in Guyana

Kaieteur News – A look at United States oil giant, ExxonMobil Corporation’s first-ever disclosure of payments to host governments, it appears as though the company’s Guyanese subsidiary paid US$656 million in taxes to the Government of Guyana (G0G) last year.

However the reality is that Exxon is not paying income taxes in Guyana. The company has said that while it is subject to Guyana’s income tax laws, the taxes assessed on the company’s operation are paid by the government, rather than the company itself. In addition to this, Exxon is then given documentation to show that the taxes have been paid in Guyana. This arrangement is owed to the 2016 Production Sharing Agreement (PSA) the Coalition Government signed with ExxonMobil Guyana Limited (EMGL) for the Stabroek Block.

On Wednesday, September 25, Exxon made a filing disclosing that it paid US$49 billion in global tax and duties expenses – this includes US$16 billion in income taxes.

Recently, this publication reported that EMGL did not have to pay over GYD$197 Billion in taxes to the Guyana Revenue Authority (GRA) for the past two years [$138B in 2023, $59B in 2022], as the taxes were paid by the Government in keeping with the lopsided PSA.

In reply to Slipfeeler

So basically they writing off/absorbing the taxes ?

Been trying to wrap my head around a government 'paying' taxes a couple weeks now after seeing a video with Glen Lall talking about this .

Does it mean the government has to deduct the tax rate from what Guyana earned from the deal basically giving Exxon a tax credit after paying no tax ?

This sorta tax could only have value if the other party is paying it as a part of their profits, anything else is just playing with numbers and bottom line figures with no REAL tax income and furthermore it's the opposte of collecting tax, it's basically a penalty they've agreed to accept .

Is this thing as bad as Glen Lall keeps suggesting?

In reply to bravos

Glen has his own axe to grind

In reply to ray

but is he incorrect ?

In reply to doosra

Tell Glenn to take this up with his pal Granger who inked the deal to allow for all of this.

Some years ago the World Trade Organization said that the contract Guyana signed with Exxon was an unfair contract for Guyana. I guess not paying taxes is another unfair clause in the contract.

In reply to doosra

TBH, I don't know...who really knows?

Guyana really has oil?

That’s another lesson for Jamaica to learn, when they sign agreements with their multinational partners, who are all about maximizing of profits and less about the local economy sustainability.

In reply to Slipfeeler

Are you aware the previous government of Guyana gave the rights to a fund to clean up any oil spills?

This fund is $500 million US and controlled by Exxon.

Its Guyanese taxpayers money?

Why allow a multinational to control taxpayer money in case of an emergency?

In reply to sgtdjones

That is a brain scratcher that our governments in this time and age, continue to be controlled by multinational. From in the 1970’s when Michael Manley imposed a 5% levy on Jamaican bauxite of which multinationals refused to pay, instead they called in the CIA with a huge propaganda that Jamaica is heading towards communism like Cuba, resulted in a significant financial disruption to the Jamaican economy.