CCJ orders Guyana to refund $$$ in Environmental tax

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The Caribbean Court of Justice (CCJ) has ruled that Guyana refund Trinidad-based beverage company, SM Jaleel (SMJ) and its subsidiary in Guyana, Environmental Tax imposed between 2011 and 2015 which can amount to millions of dollars.

CCJ President, Sir Dennis Byron on Tuesday ruled that the taxes levied during this period are in violation of the Caribbean Community’s (Caricom) Single Market and Economy rules.

In handing down the ruling, Sir Dennis Byron stated 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 Revised Treaty of Chaguaramas.

Additionally, Guyana will also have to pay an aggregate sum paid by the company to the Government in Environmental Tax from March 7, 2011 to August 7, 2015 together with interest at four per cent per annum from the date of judgement.

According to Sir Byron, the Environmental Tax did not promote cross-border trade but tended to frustrate free movement of goods, distorted competition and discriminated against the companies which should have been protected as belonging to the Community.

Additionally, Guyana will have to pay 70 per cent of the cost of the court proceedings.

The company had sought to have a refund calculated from January 1, 2006 but a five-year limitation period for settlement of cases was pointed out in the ruling.

“The 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,” Sir Byron said in handing down the ruling.

Guyana’s legal team was headed by Attorney General Basil Williams, while SM Jaleel was represented by Attorney Hans Lim-A-Po of Suriname.

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