GEORGETOWN, Guyana, May 10 2017 – 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’s 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, the (CCJ) ruled that the tax was illegal and contrary to the principles of the CARICOM Single Market and Economy (CSME).
“The 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),” CCJ President, Sir Dennis Byron said in delivering a summary of the judgment.
The Court ordered Guyana to pay to the companies “the aggregate sum paid by them in Environmental Tax” 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 percent of the cost of the court proceedings which are to be taxed if not agreed, Sir Dennis said.
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.
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.
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.
“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 Dennis said accordingly the refund to SM Jaleel and its wholly-owned GBI would be for the period March 7, 2011 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
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