Derek Achong
A members club has sued the Board of Inland Revenue (BIR) over its failure to provide reasons for rejecting its objection to having to pay gaming tax for six months before it opened in 2014.
Lawyers representing Club One Members Club Limited, based at One Woodbrook Place, in Port-of-Spain, filed the judicial review lawsuit against the BIR this week.
According to its court filings, obtained by Guardian Media, when the club opened in September 2014, it paid $419,950 in taxes to the BIR for the year, which was calculated on a pro-rated basis as provided under Section 23 (9) of Registration of Clubs Act.
The club paid its full taxes between 2015 and 2017 but was contacted by the BIR and informed that it still owed taxes for the first two quarters of 2014 when it was not yet opened.
In February 2019, the club made an official objection.
In a letter dated February 12, 2021 but received via email in December, last year, the BIR rejected its objection and ordered the club to pay over $1.9 million, which represents the alleged unpaid tax plus interest calculated at 20 percent per annum.
In the lawsuit, the club’s lawyers are claiming that its ability to challenge the decision before the Tax Appeal Board is hampered by the lack of reasons being given.
“Without the BIR’s reasons for its determination, the claimant is unable to determine the merits of an appeal to the Tax Appeal Board, or whether there is good cause for the appeal which would merit an extension of time to appeal,” they said.
“Without the said reasons, the claimant is left in a state of confusion and without any way of knowing or being fully aware of the basis upon which the decision maker made his decision,” they added.
Through the lawsuit, the club is seeking a series of declarations against the BIR and an order compelling it to provide the reasons within seven days of the determination of the case.
The case was considered by Justice Carol Gobin on Tuesday and she granted leave for it to pursue the case as she ruled that they had raised arguable grounds with a realistic prospect of success.
The club is being represented by Anand Ramlogan, SC, Kent Samlal, Jared Jagroo and Natasha Bisram.