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Vonu Holdings Ltd wins appeal

Vonu Holdings Ltd wins appeal
FRCA
November 11
11:00 2017

 

An appeal against the decision of the Tax Tribunal (Decision) delivered on February 25th in 2015 was allowed in the Tax Court, High Court of Suva on November 2nd this year.

The matter between Vonu Holdings Ltd and the Chief Executive Officer, Fiji Revenue and Customs Service was brought before Judge David Alfred.

The court heard that the appellant Vonu Holdings Limited through its notice of appeal pursued the need for an order that the decision of the tribunal be revised or set aside on the following reliefs;

n The Notice of Assessment that was issued on September 20th, 2013 for the payment of capital gains tax (CGT) (Assessment) to the extent of F$791,264.2.

n The Notice of Assessment that was issued on May 7, 2014 revising CGT to $743,936.77 and imposing a 20 per cent penalty of $148,787.35.

n An order that the Revenue refund Vonu Holdings the sum of $791,264.28.

n An order that Revenue pay Vonu Holdings the interest on the sum from the date payment was made to Revenue.

Some of the grounds that Vonu Holdings made for their appeal were based on that the Tribunal erred in law and fact in concluding Vonu Limited made a capital gain on a Fiji asset and thus Revenue was entitled to impose a 10 per cent CGT and the Tribunal erroneously relied on the licensing agreement between Vonu Limited and Brewsawa Trustee Ltd.

Justice Alfred said the decision that the intellectual property licensed to Brewsawa is the intangible asset and a capital asset and that the appellant Vonu Holdings as a licensor of the intellectual property has an interest in it is untenable.

“I am compelled to reiterate the licensed agreement acknowledged that Vonu Holdings is the owner of Brewsawa is thus not having a capital asset but having a fixed place of business in Fiji,” he said.

Justice David as a result allowed the Appeal and the decision of the Tribunal set aside.

He ordered that the;

n The Notice of Assessment issued on September 20, 2013 be set aside.

n The FRCA to refund to Vonu Holdings the sum of $791,264.28 collected under CGT assessment.

n The FRCA to pay Vonu Holdings an interest on the refund at the rate of four per cent per annum from the date of the judgement given to the date of payment.

n Each party had to pay their own costs throughout the proceedings.

Feedback:  losirene.lacanivalu@fijisun.com.fj

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