Swept Away Resorts Ltd. v Commissioner of Taxpayer Appeals

IN THE SUPREME COURT OF JUDICATURE OF JAMAICA

IN THE REVENUE COURT

REVENUE APPEAL NO.: 2 OF 2004

BETWEEN SWEPT AWAY RESORTS LIMITED APPELLANT

AND THE COMMISSIONER OF TAXPAYER RESPONDENT

APPEALS

Mr. Alan Wood instructed by Livingston, Alexander & Levy for Appellant;

Ms. Kathy Pyke and Ms. Janice Beaumont for Respondent

Heard on September 19, 20 , 2005 and January 30, 2006

ANDERSON: J

This is an appeal by Swept Away Resorts Limited, ("the Appellant") against a

decision of the Commissioner of Taxpayer Appeals ("the Respondent") made 24'h

August, 2004, whereby the earlier decision of the Commissioner Taxpayer Audit

and Assessment, was affirmed. The decision so affirmed was to the effect that

interest earned by the appellant on bank deposits of surplus cash flow in the years

of assessment 1995-1999, was not exempt from income tax by virt~~oef the

provisions of the Hotels (Incentives) Act, ("the Act") under which the Appellant

operated during the relevant period. The Appellant seeks an Order from this court

"that it be declared that interest on deposits earned by the Appellant for years of

assessment 1995 to 1999 is exempt from tax pursuant to the provisions of the

Hotels (Incentives) Act and the Approved Hotel Enterprise (Swept Away Resort

Hotel Enterprise) Order 1991, as such interest is properly to be treated as part of

the profit arising or accruing from the operation of the enterprise". The grounds of

the Appeal are set out below.

1. The Appellant is the owner and former operator of a hotel enterprise

known as the Swept Away Resort (the Hotel), which hotel enterprise

has been approved by the Minister pursuant to section 3 of the Hotel