Puma Energy wins first round in tax-claim fight

By CHRISTOPHER YOWAT
THE Waigani National Court has granted orders sought by Puma Energy PNG to restrain the chief commissioner of Customs from forcing the company to pay alleged unpaid GST on shipments of crude oil.
Justice Derek Hartshorn ordered that the interlocutory injunctive orders granted in favour of the plaintiff on March 2 last year should continue after the court found that the plaintiff had serious questions to be tried before the court.
An interlocutory injunction is a court order to compel or prevent a party from doing certain acts pending the final determination of the case.
The court heard that Puma Energy was the plaintiff in the matter, the chief commissioner of Customs the first respondent, Bank South Pacific the second, Westpac Bank (PNG) Ltd the third and ANZ Bank Group Ltd the fourth.
The orders issued by the court also restrained the three defendant banks from paying money according to certain notices issued pursuant to section 191AA of the Customs Act by the first defendant.
The plaintiff started the proceedings on April 25, 2016, seeking a declaration that a letter of demand from the first defendant for the payment of nearly K2 billion was invalid, as were the garnishee notices issued to the other defendants.
The court heard that the notices were revoked.
The first respondent, without prior notice, demanded K124 million for alleged administrative penalties, and a further K897 million for unpaid import GST.
The plaintiff disputes its liability for any money claimed. The court heard that an appeal was lodged with the Customs Review Tribunal.
The court heard that the first respondent knew that its claims were disputed but went ahead and issued statutory garnishee notices to each of the bank defendants pursuant to section 191AA of the Customs Act requiring them to pay according as per notice.
The plaintiff disputed the notices served by the first respondent and asserted that they were invalid and illegal.