Telemedia battles G.O.B. over taxes
Government and Telemedia were back in Court today. Attorney for Telemedia, Eamon Courtenay, filed an application before Justice Samuel Awich, to suspend the decision by the Revenue Magistrate, Ed Usher that the Company pays up its business tax, pending an appeal before the Supreme Court. This afternoon in court, Courtenay claimed that the four point six million dollars paid by Telemedia was made under fear of imprisonment and pointed out that there are two processes under the Income and Business Tax Act, one that deals with assessments and the other that deals with recovery. Courtenay argued that there is nothing barring the tax payer from appealing the order of the Magistrate and once that appeal is lodged, the order should be suspended. Attorney for the government, Lois Young argued that a debt due is payable and as such tax shall be refunded only after a tax assessment review reflects this. She pointed out that the “Pay Now, Dispute Later” concept is an amendment brought into law in 1999. The arguments wrapped up this afternoon with Justice Awich reserving judgment until next week. We got the reaction from Telemedia’s attorney Eamon Courtenay.
Eamon Courtenay, Attorney for Telemedia
“What we were submitting today was that the Supreme Court Act, section one hundred and twelve of the act, provides suspension of any decision of the magistrate. As you know, the magistrate ordered Telemedia to pay the business tax and our submission was that once that ruling of the magistrate was appealed, there’s an automatic suspension. The basis on which we made that submission was the clear meaning of the section, secondly the fact that there was that appeal and that the magistrate was wrong when he sought to enforce byway of committing Mister Boyce to prison for non-payment of the taxes. This is a very clear provision in the law and it applies not, only to Telemedia or to any income tax matter, but the section even says that if anybody is convicted in the Magistrates’ Court of any criminal offense and they appeal and that person is imprisoned, the person is to be released pending the appeal. So it’s a very general provision and we’re a bit surprised that the Commissioner of Income Tax would take a different view on this.”
Marion Ali
“Are you also seeking a refund of those payments?”
Eamon Courtney
“No, what I’m saying is that what we dealt with today was simply a request for the interpretation of the section. The appeal is yet to come up. When the appeal comes up, we are saying that the magistrate should not have made the order. At that stage, the court can make an order; no, the magistrate should have made it or he can make an order that the magistrate was wrong and the court can order that the tax be refunded. I’m sure that what the government is going to be arguing is that even if the magistrate is wrong, don’t order a refund because Telemedia still owes the tax. So that is a matter for another day. When we come to that point we will be making the submissions to the judge.”
As for the taxes for the months of April and May, the Income Tax Commissioner has already served notices to Telemedia for payment of another four point six million dollars.
