7 News Belize

Head Tax Court Case Coming To A Head
posted (June 24, 2015)

The power players in cruise tourism were back in the Supreme court today resuming arguments over – fundamentally – who will control the future of cruise tourism in Belize: will it be the Fort Street Tourism Village, or will it be The Feinstein Group and their Stake Bank Project?

Feinstein can't start his stake Bank project because of legal hurdles put in his way by previous arrangements signed by the Musa administration. That gives the FSTV owners some level of domain over his project. And so now, as means of counter-attack, he's going for their money maker: the head tax, arguing that only government – through parliament - can levy taxes. The FSTV and the Belize Tourism Board don't have that authority – so he argues that the head tax is illegal. Now, that represents millions od dollars in earnings annually for the Fort Street Tourism Village – so they are prepared to fight it tooth and nail.

Caught in the middle is the Government of Belize. And so the case, which

is sure to be a marathon hearing started last week with the presentation of Feinstein's case – and it continued today with

arguments from Deputy Solicitor General Nigel Hawke. Hawke argued to the court that the Government does not directly control the collection and distribution of the head tax, and if it is found to be a tax and fee, then it is within its power to allow for the status quo to continue while Government prepares and passes appropriate legislation, perhaps as early as this Friday's house meeting in Belmopan. But Feinstein and his attorney Andrew Marshalleck disagree. He explained why.

Andrew Marshalleck - Attorney For Feinstein Group

"We're having a hard time identifying the source of authority for imposing such a charge because there is none."

Mike Rudon - Channel 5 News

"How does that factor into to what your client is seeking?"

Andrew Marshalleck

"We'' that's what we're saying that those provisions that touch and concern that are enforceable and invalid because the charges are being imposed illegally. They're being imposed honour by virtue of some arrangement between BTB, the government and FSTV - when the power to tax resides with parliament. It ought to be by honour of a virtue of an appropriate legislative enactment and that enactment doesn't exists."

Mike Rudon - Channel 5 News

"If the court find in favour of your client, how does that affect the entire FSTV stakebank dynamic?"

Andrew Marshalleck

"Well what it does is government's concern about proceeding with the stakebank bank because it could be in breached of a number of these provisions in the agreement. What we're doing is having declare before hand that they need not do so. Those particular provisions are in any event unforcable, so that those concerns are really misplaced."

Mike Rudon - Channel 5 News

"That would clear the way for the stakebank project?"

Andrew Marshalleck

"Yes, to some extent."

Arguments continued this afternoon and Rodwell Williams will be the last to respond on behalf of the Fort Street Tourism village when the case wraps up later this week.

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