Gov’t loses Sales Tax Appeal

St John’s, Antigua: There’s no secret that Government has been slow to pay tax refunds, and yesterday it received a multimillion-dollar reprimand from the Eastern Caribbean Court of Appeal over the practice, according to a report in the Antigua Observer.

Attorney for Stanford Development Company, Hugh Marshall Jr., said yesterday that the court was convinced by the arguments put forward by him and fellow legal team members.

“We have obtained now a judgment against (the) Government of Antigua & Barbuda in respect of an 18-million-dollar refund of ABST (Antigua & Barbuda Sales Tax),” he said.

The Observer report said companies and businesses that collect and remit ABST are entitled to refunds but the system is described by some as dysfunctional. Stanford Development Company’s claim dates back at least four years.

“These are monies that Stanford Development Company has paid, principally in respect of things it has purchased and material it has brought in for construction projects over the years,” Marshall said.

The lawyer said that Government didn’t even respond to the claim initially and after being pressed, conducted audits, despite missing a three-month deadline to settle accounts.

The Observer stated that now with the appeals judgment in hand, Marshall is hoping the process would be quicker as the company is under pressure from suppliers and former employees.

No reaction was immediately available from Government.