- The Department of Inland Revenue’s attempt to secure $11.636m in VAT from the sale of two cruise ships has been dismissed by the Supreme Court.
- The judge ruled that the government must take an alternative legal approach to secure the taxes.
- The move by the Attorney General’s Office was deemed unnecessary and premature.
- DNB Bank, the ships’ secured financier, is disputing the VAT claim and asserting that the sales proceeds belong to itself and other creditors.
- The Department of Inland Revenue’s claim, if successful, would be one of the largest VAT generating transactions in The Bahamas.
- The government’s intervention could have negative consequences for the global maritime industry in The Bahamas.
- The $128m proceeds from the ship sale are currently in escrow accounts as creditors determine payment order.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
