It doesn’t make much of dent in the vast volumes of litigation involving the government and Market Square, but tonight, government does have at least a moral victory to celebrate. This morning the Chief Justice struck out a case brought forward by three Michael Ashcroft companies stemming from its multi-million dollar quarrel with Belmopan over business tax arrears. Belize Telemedia, BTL Digicell and Business Enterprises Systems Limited had asked the CJ to make three declarations of unlawfulness related to eighteen judgement debtor summonses and twenty-one assessments between February and August of this year, alleging that the Commissioner of Income Tax had strayed from the statutory regime set out in the act; had failed to comply with the provisions of the act and moreover, had acted irrationally or with improper motive in assessing the taxes owed by the companies and then seeking to collect those sums.
Last week, the companies’ attorney, Eamon Courtenay argued that his clients’ attempts to have the Commissioner review the assessments as well as their efforts to take their challenge to the income tax appeals board had been unsuccessful because there had been what he called a “breakdown of the statutory scheme.” But the Attorney General’s representative Lois Young rejected that, telling the court that an appeals board has been in existence since “living memory” but that Telemedia and its sister companies had not used the considerable resources at its disposal to take their case before the board.
This morning, the Chief Justice agreed with Young, saying that he had been convinced that the appeals board was an alternate remedy and had been and is available to the companies. Furthermore, the CJ found that while the Accommodation Agreement’s validity was not being questioned in this case, it was at the heart at the matter as the three companies used it to base their claim that they do in fact have a credit with the government for any taxes that they may owe.
Following the proceedings in court this morning, Young told us that while today’s decision will bring some relief, the Ashcroft-sponsored litigation continues to pile up.
Lois Young, Attorney for Government
“It really cuts down on the amount of litigation, that’s all it does. Right now between Telemedia and Belize Bank there are twenty cases in this Supreme Court. 20 ongoing cases and what this does is just to cut down on one of them but we’re still there with every month having to fight for business tax from Telemedia.”
Janelle Chanona,
Does this now open the doors to the appeals board that you wouldn’t have to go to the Magistrate’s for summons enforcement?
Lois Young,
“No we still have to go because remember you need to pay and then appeal and so they won’t pay, at all. Even though they may be appealing and they have to go by way of the appeal route, they won’t appeal. But the critical thing too about appealing is that the Chief Justice has made this clear, the question here is the validity of the Accommodation Agreement and Telemedia has said that is before arbitrators in England. They don’t want the courts here or the appeals board to deal with their Accommodation Agreement because they say that is subject to their arbitration.”
Janelle Chanona,
Now will the AG be looking at bringing the Accommodation Agreement before the CJ?
Lois Young,
“I don’t know if the Attorney General, remember there is a problem that the Accommodation Agreement was signed between the government of Belize and Telemedia so you can’t have the government challenging its own agreement. Even though it is a different political party in government, it is still the government. Maybe another group will do it, I don’t know.”
And it’s notable that the CJ also awarded costs to the Attorney General. Young and Courtenay have since agreed that that figure will be twelve thousand dollars.
