‘NOT TRUE, OWEN!’

CLAIMS that Opposition Leader Mia Mottley waived income tax arrears for her father Elliott Mottley Q.C. have been categorically denied and are apparently being met with legal action for defamation.

During a press conference held in his law offices in Strathclyde Drive yesterday morning, E. Mottley, while wrapping up a prepared statement in which he described Arthur’s claims as “untruthful and misleading”, sought to disassociate his daughter from the allegations that were made against her and himself on the Democratic Labour Party (DLP) political platform on Sunday night and a press conference held by former Prime Minister Owen Arthur on Monday morning.

“I am particularly disappointed that Mr. Arthur, for whom I have acted as attorney-at-law, and continue to act, and on whose behalf I obtained damages for defamation, should now resort to making the kinds of statements he made on Monday,” Mottley said.

Emotions ran high for Mottley who was unable to complete the end of his statement after dissolved into tears at which point his son Warren stepped in to assist his father, giving the assurance that his sister during the period 1994-1999 never acted as Minister of Finance and Economic Affairs.

Mottley also made it clear that contrary to the recent claims, that his daughter did not waive the income taxes owed; neither did he make an application to have his income taxes waived by the Minister of Finance. Rather an application was made for a waiver of interest and not the penalties or taxes owed.

According to attorney-at-law for E. Mottley, Roger Forde: “It is my opinion that Mr. Arthur’s statements betray a misunderstanding of the relevant Laws of Barbados which deal with waivers of taxes and duties as opposed to waivers of interest and penalties for income tax.”

“Indeed, waivers, of taxes and duties are provided for in a general way under Duties, Taxes and other Payments (Exemption) Act CAP 67 B of the Laws of Barbados and the waivers of interest and penalties on income tax are specifically dealt with under the Income Tax Act CAP 73 of the Law of Barbados. Under that Act, the Minister has no power to waive income tax due and owing by the taxpayer.”

Mottley told the media that having two judgements registered against him in the respective sums of $20 587.91 and $1 031 284.37 on January 23 1995, he engaged the services of a tax consultant who wrote a letter to the Ministry of Finance on September 29, 1995 under the Income Tax Act, not the Duties, Taxes and Other Payments (Exemption) Act, for a waiver not of the tax due, but of the interest and penalties that had accrued and were causing the debt to mushroom.

Mottley said on March 22, 1996, June Chandler, on behalf of the Permanent Secretary, Finance, sent a letter to Blair Haynes, his tax consultant, stating that the waiver of the interest payable would be allowed in respect outstanding income tax on the condition that the outstanding principal and penalty is cleared on or before March 1997.

Mottley said between he retained Sir Henry Forde Q.C. to assist in the sale of his house, with the intention of liquidating the debt from the net proceeds of sale. An extension of the waiver of interest was sought through the Permanent Secretary of the Ministry of Finance, up to May 15, 1998.

He said a letter dated May 7, 1998 from Ms. Chandler, on behalf of the Permanent Secretary of Finance informing of the approval of an extension of the time to clear income tax liability, on the condition that the outstanding principal and penalty is deemed on or before May 15, 1998.

Mottley referred to a Memorandum of Satisfaction from acting Commissioner of Inland Revenue Frank Forde witnessed by Jennifer Edwards, Deputy Solicitor General acknowledging that he “received a sum of $585 280.28 in satisfaction of the sum of $1 031 284.37 due under the January 1995 judgement. He says a similar memorandum was given in respect of the judgement debt for $20 587.91 to which Forde accepted the sum of $13 369.35.

“I wish to assure the public of Barbados that these two Memoranda, together with the letters sent on behalf of the Permanent Secretary of Finance, are clear evidence that the Minister of Finance, as he was empowered to do under the Income Tax Act, waived the interest but not the tax or penalties. I wish to reiterate that at no stage did I make any request of the Minister of Finance to waive any tax on my behalf and at no stage did I receive any waiver of tax,” he said.

To this end he said there was no need to involve the Cabinet in the application since the application fell under the Income Tax Act and not the Duties, Taxes and Other Payments (Exemption) Act Cap 67B.

Mottley’s comments came in response to the DLP national meeting held on Sunday May 13 in the City and on May 14 during a press conference held by Former Prime Minister Owen Arthur where certain allegations of preferential treatment were made.

According to Forde, the Gazette will show during December 8 to December 14, 1994 Mottley was the Minister of Health (Ag), April 29 to May 14, 1995 Attorney General (Ag); November 5 to November 15 Attorney General (Ag); November 7 to November 11 Attorney General (Ag); November 13- November 19, 1996 Attorney General (Ag), November 5 to November 6, 1998 Attorney General (Ag); September 12 to September 16, 1998 Attorney General (Ag), September 27 Attorney General (Ag), June 12 to June 16, 1999 Foreign Affairs Minister (Ag), September 19- September 28 Minister of Home Affairs (Ag). The lawyer maintains that during the period under review Mia Mottley never acted as Minister of Finance. (JH)