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Jul 18, 2008

Telemedia scores victory over G.O.B.

Story PictureA major decision was handed down today in the Supreme Court, but that judgment by Justice Samuel Awich will likely lead to more legal tangles between Belize Telemedia and the Government. It arises from an interpretation of Section 112 of the Supreme Court Judicature Act. Belize Telemedia and the Government have been in and out of court on this matter after a warrant was issued on July fourth by Revenue Magistrate Ed Usher for the arrest of Telemedia C.E.O., Dean Boyce. On June twenty-fourth, Usher ordered Telemedia to pay over four million dollars in business taxes. The company appealed the decision, but before the issue was heard in the Supreme Court, the bench warrant for Boyce’s committal was issued and Telemedia paid up. The utility argued in court that an appeal before the Supreme Court should have suspended the orders of the Revenue Magistrate. Well today Judge Awich agreed with Telemedia’s attorneys Eamon Courtenay and Elson Kaseke. This afternoon Kaseke gave his reaction to the ruling.

Elson Kaseke, Attorney for Telemedia
“I think it is welcome news for Telemedia and its subsidiaries. It’s a big decision for them. If you know the path they have been setting, that once they lodge their appeal, the effect of section 112 as to suspend the operation of the order of the magistrate but the government was taking an opposite view. It actually issued the warrant of arrest for the arrest of Mr. Dean Boyce saying that although Telemedia and these subsidiaries have lodged their appeal, the lodgment of their appeal is cannot stay the judgment of the magistrate, therefore they wanted to imprison Mr. Dean Boyce. Now the situation has been clarified.”

Marion Ali
“So what happens now that the senate has approved the amendment to section 112, which is contrary to what the judge is saying?”

Elson Kaseke
“I think the legal team for Telemedia is looking at the proposed amendments very carefully to determine whether they are constitutional or whether they violate any other principles of public law. And also there is an issue which arises because every time Telemedia has been forced to pay, what happens to the money which it pays, given the judgment that the judge has just given?”

Marion Ali
“So what recourse does B.T.L. have now? What can it do, what are its options?”

Elson Kaseke
“We haven’t received the instructions yet but those are issues which I think will always quickly come to mind; that look, the government was pushing Telemedia on pay or punishment, that if you don’t pay we will imprison your official. Now that the judges say once you lodge an inferior appeal, the decision of the magistrate is suspended. What happens to the money Telemedia paid? Does it get it with interest? It is something which we have to address.”

Appearing for the government was Attorney Lois Young. Government and Telemedia will now have to battle over the four million dollars paid in taxes. But before Justice Awich made his ruling, this morning the Senate approved an amendment to the Supreme Court Judicature Act which suspends appeals before the Supreme Court. While this piece of legislation was admittedly intended to deal with the payment of taxes by Telemedia, the new law will affect everyone in a wide range of taxes including personal income tax, stamp duties, and land tax. Under this new law, there is no way to challenge any tax ordered unless you pay in full or face committal.


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