Tax battle tilts in favour of Dolphin Cove
Published:Wednesday | June 8, 2022 | 12:08 AM
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A two-year battle with Tax Administration Jamaica, TAJ, has so far tilted in favour of marine park operator Dolphin Cove Limited. A final decision by the Revenue Appeals Division is still pending, but so far $38 million has been shaved off the GCT...
A two-year battle with Tax Administration Jamaica, TAJ, has so far tilted in favour of marine park operator Dolphin Cove Limited.
A final decision by the Revenue Appeals Division is still pending, but so far $38 million has been shaved off the GCT liability of $271.5 million in outstanding taxes and penalties, plus unknown amounts in two other claims that were withdrawn by the tax authorities, the company said.
The case relates to a GCT audit covering the period January 1, 2014 to July 31, 2019.
In January of this year, Dolphin Cove filed another appeal to the Commissioner General of TAJ, details of which were not made public, but in its financial report for the quarter ending March, the marine park operator said TAJ had withdrawn another two important claims.
Dolphin Cove Chairman and CEO Stafford Burrowes declined to comment on the tax case, saying only that the majority of the GCT liability assessed against the company had been reduced with the withdrawal of the two claims.
The company first disclosed the tax assessment and appeals in its year-end financial report.
“The tribunal heard submissions from both TAJ and ourselves in relation to the remaining claims and the decision will be handed down after further written submissions are made by the parties. The matter is now sub judice pending the handing down of the decision of The Revenue Appeals Division,” Dolphin Cove said in its audited 2021 report.
The final outcome is pending, but in the recent release of its March financials, Dolphin Cove said its management felt they had adequate grounds for appeal, based on advice from the company’s attorneys, and had therefore made no provisions for the tax liability.
Over the quarter, the group generated earnings of US$800,000, five times more than the similar quarter of 2021 and nearly on par with its pre-pandemic performances, a performance Dolphin Cove attributed to the strict management of expenses. Its expenses dipped by US$1 million to US$1.5 million.
The company noted, however, that while its earnings had risen in the quarter, it only had about half the volume of visitors when compared to pre-COVID traffic.