Justice Rishi Persaud on Tuesday granted an Order of Certiorari calling on Commissioner General of the Guyana Revenue Authority (GRA), Khurshid Sattaur, to show cause why his decision to deduct income tax from the award the Court made to James Ramsahoye.
Ramsahoye had successfully sued the Linden Mining Enterprise (Linmine) and the Bauxite Industry Development Company (Bidco) for breach of their contract with him.
Ramsahoye claimed that the deductions were made without or in excess of jurisdiction, are unreasonable, unlawful, unconstitutional, arbitrary, capricious, in breach of natural justice, ultra vires, null and void and of no legal effect. The case is fixed for hearing on November 8.
The Court of Appeal in March found, in Ramsahoye's favour, that the companies had breached their contracts of employment with him and its award, together with interest due to date, amounts to $83M.
At the time of the breach of contract Ramsahoye was the overseas marketing representative of Linmine and Bidco, a position he held since 1978 until he was unlawfully dismissed.
In a letter dated to Linmine's Chief Executive Officer Horace James, Sattaur directed James to deduct the sum of $45,132,975 from the damages awarded by the Court of Appeal.
In an affidavit in support of the motion filed by his counsel Rex McKay SC, Ramsahoye's brother, Dr Walter Ramsahoye, who has power of attorney for his affairs in Guyana, said that after the judgement was obtained, Linmine's chairman, Christopher Plummer swore before Justice Bovell-Drakes that he was in touch with Sattaur to ascertain his brother's tax liability if any. He said too that James was also in touch with Sattaur and the true intention of Plummer and James was unlawfully to interfere with the integrity of the Court of Appeal's judgement in favour of his brother by unlawfully imposing a tax on the judgement and making an unlawful assessment of tax from 1990. This was in violation of the Income Tax Act by assessing him for tax outside the period of seven years without alleging or being able to prove fraud or gross or wilful neglect as stipulated by the Act.
Dr Ramsahoye added in his affidavit that no notice of assessment was served on his brother as required by the Act and that no payment would become due until the date stated in the notice of assessment or until his brother has exhausted his right of appeal to the Board of Review and to a Judge and Court of Appeal.