The Lord Ashcroft controlled BTL lost a critical courtroom battle today. It was in the Magistrate’s Court where Revenue Magistrate Ed Usher ordered the Belize Telemedia Limited to pay more than $4 million in business taxes due for February and March plus interest. This comes on the heels of Saturday’s decision by the Chief Justice that the so-called Accommodation Agreement doesn’t exempt the Income Tax Department from taking Telemedia to court for unpaid business taxes.
And so this morning the Income Tax Department enforced the judgement summons and took Telemedia to Magistrate’s Court. Eamon Ccourtenay appeared for Telemedia and he argued that the Commissioner of Income Tax Eric Eusey has in his possession a document explaining why Telemedia doesn’t have to pay its taxes. But Eusey wasn’t there, Lois Young Barrow was and she argued that under the law – you pay first and then you’ll get a refund if you deserve one.
And that was the order of the court, Telemedia must pay $4.6 million which includes interest. Courtenay says he’ll advise his client to follow the court’s order.
Eamon Courtenay, Attorney for BTL
“The company certainly will obey the order of the court. As to when it is going to be paid, certainly within the time line but I haven’t even had a chance to tell the company what decision the Magistrate came to.”
Lois Young Barrow, Attorney for Government
“We expected to have a little mudding of the waters but that is why I went because the figures are set but we expected mudding of the waters and Mr. Courtenay tried to do that.”
Keith Swift,
Will the company appeal?
Eamon Courtenay,
“As I said I haven’t even spoken to the company. The law as has been said is strict when it comes to the payment of taxes so I think the company is going to look at it very carefully. Even if you appeal, you have to pay the taxes as well so I am not sure what the company’s decision is going to be but I will say the company will respect the order of the court.”
Keith Swift,
How big a defeat is this?
Eamon Courtenay,
“Everybody has a right to a fair hearing and a procedure. We have gone through the procedure, the court has made a determination and we’ll
respect that. The fundamental point that the company has been trying to make is that the taxes are due, Telemedia has always paid its taxes and will continue to pay its taxes.”
Telemedia agreed to pay half of the taxes by July 1st and the other half by a week later on July 8th. But that is only the back taxes for February and March. April and May are still outstanding and Lois Young Barrow says Telemedia can expect judgement summonses for those as well.
Lois Young, Attorney for GOB
“They’ll have to continue Alfonso so assessments will continue as per usual and we expect them to pay. Interest will accrue because as you all could tell there was an amendment where interest had to be added on. It accrues on a monthly basis.”
Eamon Courtenay,
“If the procedure has to be gone through again for the court to make another order for Telemedia that may be what will have to happen but I don’t want to predict because as I said I haven’t spoken to the company about the next months.”
No indication has been given as to when the summons for April and May will be enforced.
