- The government dropped its attempt to collect $11.636 million in VAT from the $128 million sale of two cruise ships.
- The Supreme Court dismissed the VAT claim, and Justice Simone Fitzcharles ordered the government to pay $37,298 in costs to the law firm representing the secured lender.
- The law firm, Alexiou, Knowles & Company, accused the government of trying to hinder their client’s objection to the VAT demand.
- The sale proceeds were held in escrow, and banking disruptions occurred due to a notice from the VAT comptroller.
- Justice Fitzcharles found insufficient evidence to support claims of pressure tactics by the government.
- Justice Petra Hanna-Adderley ruled that VAT is not applicable to judicial sales, confirming the government’s lack of claim to the VAT amount.
- The cruise ships were sold for $25 million and $103 million under court orders, with the VAT demand issued months later.
- DNB Bank and other creditors objected to the VAT assessment, as it would reduce their financial recovery.
Source: tribune242.com
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.
