One way to get around this is to use implicit casting:
bool DoesEntityExist<T>(T entity, Guid guid, ITransaction transaction) where T : IGloballyIdentifiable;
calling it like so:
DoesEntityExist(entity, entityGuid, transaction);
Going a step further, you can turn it into an extension method (it will need to be declared in a static class):
static bool DoesEntityExist<T>(this T entity, Guid guid, ITransaction transaction) where T : IGloballyIdentifiable;
calling as so:
entity.DoesEntityExist(entityGuid, transaction);