Carreras Group Ltd v The Stamp Commissioner

IN THE SUPREME COURT OF J U D I C A m OF JAMAICA

 IN THE REVENUE COURT

SUIT NO. 3 OF 1999

 BETWEEN CARRERAS GROUP LIMITED APPELLANT
1 AND THE STAMP COMMISSIONER RESPONDENT
Heard July 16. 17. 18.2001 and November 14.200 1.
c) Richard Mahfood Q.C. and Ms. Yolande Whiteley, instructed by Philip Forest and
Richard Ashenheim of Dunn, Coy Orrett & Ashenheim, for the Appellant
Michael Hylton Q.C. and Garfield Haisley instructed by the Director of State
Proceedings, for the Respondent.
ROY ANDERSON: J
This matter involving an appeal fiom a decision of the Commissioner of Stamp Duties
and Transfer Tax, handed down on the 21"' day of October, 1999, confirming an
assessment of the Appellant to Transfer Tax under the Transfer Tax Act (the Act"), came
,-- C- on for hearing on the 16&, 17' and 18& of July 2001. At the end of the hearing, I
reserved judgment and promised to put that judgment in writing when it was to be handed
down. I apologize for the fact that it has taken this long to produce this judgment, but am
now pleased to deliver it.
The facts which give rise to this appeal are briefly, as follows: The AppeIlant up to 1999,
owned all the ordinary issued share capital and most of the preference shares in Jamaica
Biscuit Company Limited ("The shares" and "Jamaica Biscuit"). General Holdings
Limited is a Trindadian company of which Caribbean Brands Limited was a wholly
(1 owned subsidiary. The Appellant entered into a transaction with Caribbean Brands
pursuant to which in exchange for, essentially its entire shareholding in Jamaica Biscuit,
the Appellant received a debenture worth US$37,700,000.00. Naturally, the debenture
has been redeemed by the Appellant. The Appellant claimed the benefit of the purported
exemption from transfer tax on the basis of paragraph 6(1) of Part 1 of the First Schedule.