Tax collector to provide returns owed by BCL

By JOSHUA ARLO
The Commissioner General of Internal Revenue and chief tax collector has been ordered to provide certain documentation to Bougainville Copper Ltd (BCL) showing the outstanding tax returns owed by the latter.
This was the subsequent outcome of a decision made by the vacation National Court judge Justice Derek Hartshorn last Thursday in a case to an appeal before him by BCL.
Justice Hartshorn addressed two motions that were before him – one by BCL and the other by the commissioner when making his decision.
The case stems from when BCL was assessed to pay tax under the Income Tax Act.
BCL objected to the assessment to the commissioner but the commissioner allowed the objection in part.
BCL appealed to the National Court against the commissioner’s decision and sought orders for the Commissioner to provide to it certain documentation.
The commissioner opposed that motion and also applied to have certain grounds in BCL’s notice of appeal struck out.
The court said that for determination of BCL’s motion, that it was necessary to consider the following:
l Nature of an appeal to the National Court from a decision of the commissioner on an objection to an assessment; and
l Process for putting material before this court on such an appeal.
The appeal by Bougainville Copper Ltd commenced under section 247 (b) Income Tax Act.
Section 247 refers to a written notice pursuant to section 246 Income Tax Act of the Commissioner of his decision to disallow or partially allow an objection by a taxpayer.
It has been in force in its current form since Jan 1, 2000.
According to the National Court Rules Order 18 Division 2, which deals with taxation appeals, Order 18 rules 15 and 16 allow for appeals from disallowance of objection and documents and documents to accompany a notice of objection.
However, the commissioner contends that the effect of the amendment to section 247 of Income Tax Act was that the National Court Rules Order 18 Division 2 are irrelevant and inapplicable to the current appeal as they were not amended at the time when section 247 was amended, that no longer was the chief tax collector requested by a taxpayer to treat his objections as an appeal and that was now clear that the taxpayer must institute any proceedings by filing a Notice of Appeal.
The court said in its findings that consideration of the tax collector at the conclusion of submission of BCL’s motion that counsel should agree on documents.
The court was not satisfied that this ground of appeal by BCL was not a frivolous or vexatious or an abuse of process of the court for it to be struck out.
Justice Hartshorn however refused to grant orders sought by the commissioner in its motion date March 1, 2007, and awarded costs to BCL.