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Giftland questions City Hall’s method of tax collection – says Council ‘wants money’ while providing no service of value to company
Proprietor of Giftland Mall, Roy Beepat
City Hall’s method of tax collection has been brought into question by the operators of department store merchandise, Giftland Mall.
Testifying on behalf of Giftland Mall at the Commission of Inquiry, (CoI) into the affairs of the Georgetown Mayor and City Council, (M&CC), Paul Hugh a representative of the entity, highlighted an incident where officials of City Hall back-pedaled on an arrangement to reduce the company’s rates and taxes.
According to Hugh, MCG Investment Inc, the company under which Giftland Mall operates, had reached an agreement with City Hall to settle accounts for rates and taxes.
He said that the company had agreed to pay $11M on its rates and taxes to settle the accounts but the Town Clerk Royston King on May 2, 2018 sent a letter indicating that the Council took the decision to waive the interest accrued by MCG investments Inc and they would now have to pay some $25M instead of the agreed $11 million.
“I don’t know what Mr. King informed Council but he’s saying that Council decided that they would waive certain interest, but it’s now $25M and not $11M.”
Hugh noted however, that the company’s Director Roy Beepat replied to the Town Clerk reminding him of the original arrangement.
The witness told the Commission that while the tax deductions were made for the years, the M&CC provided no services to Giftland.
“The roads, the drainage, the lights were done by MCG Inc. Garbage disposal and collection is all done on a private contractual basis.
That road also services a community at the rear of Giftland Mall. That road was constructed by Mr. Beepat.
“I recalled one incident where M& CC had gone and seized a whole set of signs and they were ordered to give them back because it was a private road.
There are basically no services of value provided by the M&CC but they want money.”
Questioned further about contributions of the City to the operations of Giftland, Hugh noted that, “up to today no services are rendered.”
“But your business is prepared at minimum to pay 2017 and 2018?” Lawyer for the Commission Sherwin Benjamin inquired.
“No payments have been made as yet because no formal agreement has been made. We are a company and a company has to do things based on proper contractual agreements,” replied Hugh adding that the company was would make payments based on a formal and written arrangement.
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