There was some measure of celebration in government circles last week when finally GOB claimed a small victory against the Michael Ashcroft controlled BTL. The Income Tax Department got the Magistrate’s Court to order BTL to pay over $4 million in business tax arrears plus interest for February and March 2008. Half was to have been paid yesterday and the final instalment, in a week’s time.
But we checked with government today and nothing was paid. Why? Well, seeming to continue the Ashcroft strategy of enduring litigation, we are told BTL will now appeal the decision of the Magistrate’s Court which ordered them to pay the taxes. Until that matter is heard by a higher court, no tax arrears will be paid.
Consequential, because government had hoped to bring summonses for April and May shortly. All told, the revenue collectors were hoping to get over $8 million in taxes plus interest. And now that they won’t get it, the loss in revenue factors consequentially into what, if any capital programmes that can be put into the budget. Government is also hamstrung on spending because it has to pay over $8 million in arbitration losses to Newco.
We were unable to reach BTL’s attorney Eamon Courtenay for comment.
