BILLION-DOLLAR SETTLEMENT
–DDL, GRA finally resolve long-standing dispute over Consumption Tax
THE Demerara Distillers Limited (DDL) has finally reached an amicable settlement with the Guyana Revenue Authority (GRA), resolving a longstanding dispute over Consumption Tax that began in 2002.This settlement follows an extended legal battle between DDL and GRA arising out of the January, 2009 Consumption Tax assessment levied against DDL by then Commissioner General Kurshid
DDL Chairman, Komal Samaroo
Sattaur in the sum of $5.3 billion.
Through its lawyers Miles Fitzpatrick, SC and Timothy Jonas, DDL immediately challenged this assessment in the High Court.
In a release, DDL said it was able to recommence negotiations with the GRA to resolve the methodology for calculating the Consumption Tax (and its successor, Excise Tax), and has now been able to arrive at consensus to fully and finally settle all claims by the GRA and liability by DDL for both Consumption and Excise taxes up to March 9, 2016 in the sum of $1.5 billion.
“This sum is payable over 12 months. DDL, in good faith, very recently effected payment of one hundred million dollars in compliance with the settlement terms,” the release said.
In 2002, DDL had raised a legal challenge against the GRA on the methodology adopted by the latter for the assessment of Consumption tax.
In February 2005, the High Court found in favour of DDL. The GRA subsequently appealed that decision, and on July 31, 2008, the Guyana Court of Appeal unanimously dismissed GRA’s Appeal.
Following the dismissal of the appeal, the GRA commenced a new assessment in August 2008; and notwithstanding attempts by the parties at resolving the matter, on January 16, 2009, GRA issued a new claim in the crippling amount of G$5,392 billion.
On DDL’s application in 2009, the High Court issued an Order Nisi pending the hearing of the matter.
DDL Chairman Komal Samaroo said, “DDL was always committed to a resolution of the matter with the GRA, despite the many failed attempts at settlement.” He added: “DDL was pleased with the enlightened approach adopted by the GRA in December 2015, which recently culminated in the settlement of the matter between the parties.”
Guyana Revenue Authority (GRA) to resolve a long standing dispute over Consumption Tax that began in 2002.
