{"id":1672,"date":"2017-05-10T17:51:38","date_gmt":"2017-05-10T17:51:38","guid":{"rendered":"http:\/\/antiguanewsroom.net\/?p=1672"},"modified":"2017-07-23T17:36:10","modified_gmt":"2017-07-23T17:36:10","slug":"guyanaccj-orders-guyana-to-refund-trinidad-company-millions-in-unlawful-environmental-tax","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/guyanaccj-orders-guyana-to-refund-trinidad-company-millions-in-unlawful-environmental-tax\/","title":{"rendered":"GUYANACCJ orders Guyana to refund Trinidad company millions in \u201cunlawful\u201d environmental tax"},"content":{"rendered":"
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The Caribbean Court of Justice (CCJ) has ordered Guyana to refund the Trinidad-based beverage company, SM Jaleel (SMJ) and its subsidiary here over Guyana\u2019s imposition of an environmental tax applied to products packaged using non-recyclable material imported here.<\/p>

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In delivering the judgment on Tuesday in Port-of-Spain\u00a0 the Caribbean Court of Justice (CCJ) ruled that the tax was illegal and contrary to the principles of the Caricom Single Market and Economy (CSME) as it was only applied to goods imported into that country and not to similar items produced by its local manufacturers.<\/p>\n

\"Sir<\/a>
Sir Dennis Byron<\/figcaption><\/figure>\n

\u201cThe Court holds that Guyana has been clearly unjustly enriched at the expense of SMJ and GBI (Guyana Beverages Inc.) having collected an unlawful tax directly from them in clear breach of the Articles of the RTC (Revised Treaty of Chaguaramas,\u201d\u00a0CCJ President, Sir Dennis Byron said in delivering a summary of the\u00a0judgment.<\/p>

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The Court ordered Guyana to pay to the companies \u201cthe aggregate sum paid by them in Environmental Tax\u201d from March 7, 2011 to August 7, 2015 together with interest at four percent per annum from the date of judgement. Guyana is also ordered to pay 70 per cent of the cost of the court proceedings which are to be taxed if not agreed, Sir Dennis said.<\/p>

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He also ordered Guyana to file with the CCJ on or before December 9, 2017 a report on its compliance of those orders unless the companies do so before.<\/p>\n

The CCJ gave one month from Tuesday for Guyana and the companies to quantify and agree to the aggregate amount to be refunded and legal costs, although the Court knows the figure based on the receipts.<\/p>

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While the companies wanted the refund to be calculated from 2006, the CCJ used the opportunity of this case to define a five year limitation period for the settlement of cases about the unlawful collection of taxes in breach of the RTC. \u201cThe Court holds that a five-year limitation period is appropriate and will protect States from stale claims in respect of which there would be inherent difficulties in trying to produce documentary or oral evidence. It will, above all, encourage claimants to file suit in a timely fashion.\u201d<\/p>\n

Sir Dennis said\u00a0accordingly the refund to SM Jaleel and its wholly-owned GBI would be for the period March 7,\u00a02011 to August 7, 2015. The companies had hoped to be awarded a refund from January 1, 2006, when the RTC took effect, to August 7, 2015<\/p>

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He remarked that the Environmental Tax did not promote cross-border trade but tended to frustrate free\u00a0\u00a0movement of goods, distorted competition and discriminated against the companies \u201cwho should have been protected as belonging to the Community.\u201d Only non-Guyanese companies, including those from sister Caricom countries, had been required to pay the GYD$10 environmental tax on all non-returnable containers.<\/p>

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Sir Dennis said Guyana has no \u00a0basis for retaining the unlawfully collected tax. The CCJ said Guyana could not be allowed to retain by way of set-off whatever the amount of the tax cost that the trader managed to cover despite being subjected to the unlawful tax.<\/p>\n

\u201cTo permit this course of action would be to allow Guyana to be unjustly enriched by exploiting the trader\u2019s efforts and by making an illegal profit out of legislation known to be unlawful,\u201d he said.<\/p>\n

Sir Dennis referred to a similar case by the Suriname company, Rudisia, in which the CCJ had ordered that Guyana refund the environmental tax amounting to more than US$6 million. \u201cGiven the Court\u2019s decision in the Rudisia case with similar tax, SMJ and GBI are prima facie entitled to a declaration\u2026by Guyana of the monies it should never have collected,\u201d he said.<\/p>\n

In 2015, Guyana amended its Customs law to remove provisions that discriminate against companies in the Caricom Single Market.<\/p>\n

\u201cThe legislation did not provide for an exemption for non-returnable containers which qualify for Community treatment. There was no similar tax payable in respect of locally made non-returnable containers, this giving Guyanese manufacturers a clear competitive advantage over other Caricom manufacturers, thereby allowing discriminatory treatment to those Caricom manufacturers,\u201dthe CCJ President said.<\/p>\n

\"\"<\/a><\/div>","protected":false},"excerpt":{"rendered":"

The Caribbean Court of Justice (CCJ) has ordered Guyana to refund the Trinidad-based beverage company, SM Jaleel (SMJ) and its subsidiary here over Guyana\u2019s imposition of an environmental tax applied to products packaged using non-recyclable material imported here. In delivering the judgment on Tuesday in Port-of-Spain\u00a0 the Caribbean Court of Justice (CCJ) ruled that the […]<\/p>\n","protected":false},"author":3,"featured_media":1673,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regional"],"yoast_head":"\nGUYANACCJ orders Guyana to refund Trinidad company millions in \u201cunlawful\u201d environmental tax - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/guyanaccj-orders-guyana-to-refund-trinidad-company-millions-in-unlawful-environmental-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GUYANACCJ orders Guyana to refund Trinidad company millions in \u201cunlawful\u201d environmental tax\" \/>\n<meta property=\"og:description\" content=\"The Caribbean Court of Justice (CCJ) has ordered Guyana to refund the Trinidad-based beverage company, SM Jaleel (SMJ) and its subsidiary here over Guyana\u2019s imposition of an environmental tax applied to products packaged using non-recyclable material imported here. 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