by Curlan Campbell
- Retail store on St John Street raided by Customs and Excise Division
- Store reported to be suspected of engaging in underinvoicing imported goods
- Underinvoicing can cause government to lose thousands in revenue
A retail store on the lower end of St John Street, St George’s was raided on the morning of Thursday, 23 January 2020 by officers from the Customs and Excise Division, as well as officers from other law enforcement divisions of the police force.
The management of Basel Store, one of many retail stores on the street, is reported to be suspected of engaging in underinvoicing goods imported into the country.
“Underinvoicing is the practice of stating the price of goods on an invoice as being less than the price actually paid. Underinvoicing occurs when the importer wants to reduce a tariff to reduce their apparent profits to pay less in taxes.”
– Farlex Financial Dictionary
A Customs official is yet to publicly comment on the raid but it is understood that the crackdown by the authorities is part of efforts to combat what appears to be a growing trend among some business owners.
Grenada’s law provides for steep penalties for those who are found guilty of engaging in the act which can cause government to lose thousands in revenue. The Customs and Excise Department is one of the main revenue earners for government.