Latest update January 31st, 2025 7:15 AM
May 15, 2017 News
The Caribbean Court of Justice (CCJ’s) decision in the S.M. Jaleel & Company Limited case represents a major victory for the nation’s taxpayers. This is the view expressed by Ministry of Legal Affairs.
In a statement, following the ruling the Ministry outlined that because of the ruling; taxpayers will no longer have to bear the full burden of lawlessness imposed by the PPP/C administration.
According to the Ministry, the APNU+AFC Government on entering office in May 2015 inherited the unpaid judgment awarded against the PPP/C Government by the (CCJ) for over US$6 million in the case of Rudisa Beverages & Juices N.V and Caribbean International Distributors Inc versus the State of Guyana.
The Ministry noted that based on this precedence, which was set under the former government, Guyana was destined to reimburse S.M. Jaleel a similar sum of over US$6 M.
However, in his ruling, with regards to Trinidad Beverage company, (S.M Jameel) CCJ President Sir Dennis Byron, outlined that that a five-year limitation period is appropriate and will protect States from stale claims in respect of which there would be inherent difficulties in trying to produce documentary or oral evidence. It will, above all, encourage claimants to file suit in a timely fashion.
S.M Jaleel was seeking a declaration that Guyana breached the RTC in relation to them and an order that Guyana reimburse them the aggregate sum of environmental tax levied and collected from GBI from as far back as January 2006.
The Ministry of Legal Affairs therefore emphasized that the ruling from the CCJ places a five-year limitation period for the settlement of cases about the unlawful collection of taxes in breach of the RTC.
Therefore companies claiming for such relief can no longer seek the refund to be calculated as far back as 2006.
Additionally, the Ministry said that in the ruling, CCJ found that a period of five years is neither too long nor unduly short for a claimant to commence proceedings.
“The court considers that this time limit will protect states from being vexed by claims relating to long–past incidents about which their records may no longer be in existence and as to which their witnesses may well have no accurate recollection.
It will above all encourage claimants to bestir themselves and file suit in a timely fashion. This five-year period permits adequate access to justice and is consistent with both international and regional standards.
It will run from the time that the claimant knew or at the very least reasonably should have known that the defendant State was in breach of the treaty.”
The Legal Affairs Ministry therefore noted that the Trinidad beverage company will only be entitled to half the amount of money for which they claimed.
“S.M. Jaleel & Company Limited; Guyana Beverages Inc.’s claim being from 1st January 2006 to 7th August would only obtain reimbursement for four instead of nine years, which sum would be subject to Corporation tax of 40 percent.
In other words less than half of their claim,” the Ministry explained.
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