Court revokes departure prohibition order

The Lautoka High court yesterday revoked the Departure Prohibition Order issued by the Commissioner of Inland Revenue against the directors of Herbert Construction Fiji Limited.

Anthony James Herbert and Malcolm Andrew Herbert were prohibited from leaving the country through a Departure Prohibition Order issued on 29th June this year by the CEO of Fiji Islands Revenue and Customs Authority on the basis that they are the directors of the company which is said to have unpaid taxes.

The two then took the matter to court claiming that they have suffered a lot of anguish and distress from the issue of the Departure Prohibition Order because they are unable to travel out of Fiji for business and to visit their families in New Zealand.

The two also claimed that they have every intention of returning to Fiji to continue the management and operation of the Fiji company.

Judge Justice Sosefo Inoke in his judgement states that in this case it is not disputed that the company has a tax liability, how much is yet to be determined and whether the directors are liable, is the issue.

He said the other issue is whether the FIRCA CEO had reasonable grounds that the applicants would leave and not return without first paying the assessed tax.

Justice Sosefo Inoke in his ruling further states that the first point that needs to be made is that it is the company that owes the tax.

He said the company is still operating in Fiji and who is he to say that it will not be able to pay its taxes.

He states that there is no evidence put forward by the CEO to say that the company is not able to do so.
 
The High Court Judge said the FIRCA CEO seems to have based his decision simply and principally on his opinion that the tax he had already assessed is a substantial amount and that the company's assets are insufficient to meet the tax liability.

Justice Inoke said no explanation has been given as to the basis on which the applicants have been made liable for the taxes of the company other than that they are the representatives of the company.

He said the FIRCA CEO has acted pre-maturely.

He said this is nothing but a misguided attempt to issue the Departure Prohibition Order and that the Departure Prohibition Order dated 29th June be revoked forthwith.


Story by: Shalvin Deo