Court stays goods, services tax distribution

National

A COURT has stayed the planned distribution of goods and services tax to Central, Gulf and the Motu Koitabu Assembly (MKA) pending the hearing of a case filed by the National Capital District Commission (NCDC).
Internal Revenue Commission commissioner-general Sam Koim had approved the sharing of the 60 per cent of GST share due to the NCDC, with Central (10 per cent), Gulf (3 per cent) and the assembly (2 per cent).
National Court judge Justice Thomas Anis granted the restraining order in favour of the NCDC after he found that the balance of convenience favoured the granting of the interim orders, pending the determination of the case.
He said damages would not be an adequate remedy if the restraining orders were not granted.
Koim said on April 22 that the current practice was that the GST was paid to Central, Gulf and MKA by the NCDC.
But it would not be paid by the IRC directly to Central, Gulf and MKA.
The NCDC asked the court to stay the IRC decision while the matter was argued in court.
Lawyer Mal Varitimos QC for the NCDC submitted that the IRC decision was contrary to the established practice which had existed for many years.
Justice Anis ruled that public interest required the determination of the legal issues created by the dispute and now raised by the NCDC.
“The GST money that is received belongs to the people.
“It is, therefore, vital for the people or for the public’s interest, that the status quo be maintained while the matter is awaiting trial,” he said.