Giftland will have to pay taxes once proper procedure is followed - CJ clarifies

Giftland will have to pay taxes once proper procedure is followed – CJ clarifies

Mar 25, 2021 News

City Mayor, Ubraj Narine.00

Kaieteur News – Acting Chief Justice (CJ), Roxane George-Wiltshire, has clarified that once the proper procedures are followed, Giftland Mall, will have to pay up the taxes it owes to the Georgetown City Council.
This was revealed at the Mayor and City Council’s Statutory Meeting on Monday, when a video clip of the ruling was played for the Council to get clarity on the decision.
The ruling stems from court action filed by Giftland over claims that it owed the Council in excess of $100M worth of taxes. The company had released a statement saying they were exonerated of owing taxes.
While several sections of the media had reported that based on her decision Giftland owed no taxes, the CJ (Ag) clarified that her order stipulates that until proper procedures are followed, then the applicant is not liable to taxes.
While addressing the misconception, the CJ (Ag) noted, “If everyone listens to the recording of the proceedings, they will hear what was said are taxes have to be paid but paid according to law and as the law requires.”
She said further that, “Once the applicable procedures are followed then obviously, they would have to pay that which is required, according to law. So, if it is that the media and I don’t know where they would have gotten it from, if it is that the media is of the view that the applicant is not liable to pay any taxes in perpetuity, then they are mistaken.”
The CJ (Ag) noted too that in her decision the phrase “or at all” was used and that might have caused some confusion.
“But or at all has to be taken in the context of not liable until the proper procedures are followed. So, when you take a little snippet of something and don’t understand the context, then that is where we have a problem,” Justice George-Wiltshire said.
The decision followed a bitter court battle between the M&CC and Giftland Mall over$100M in taxes.
Based on the court case, the Council had calculated the alleged outstanding amount owed by Giftland using a valuation from the State‘s Chief Valuation Officer.
As such, the Court in its ruling set aside the valuation on the grounds that the Chief Valuation Officer failed to comply with the procedure for valuing the commercial property.
As a result, the Court ruled that the demand for rates and taxes, based on the calculation of the municipality, was set aside. In addition, the Court ruled that the claim of 21 percent compound interest by the Council under the Municipal and District Council Act is set aside.
Meanwhile, at the statutory on Monday, it was also announced that given the clarification, the M&CC would appeal certain aspects of the court decision, particularly as it relates to the valuation and interest in taxes.

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