Burgess, who has since left the country, had moved against his former employer back in 2007 after his services were terminated saying he was owed some $7 million in severance pay.
The company, he said, paid him $32.7 million and had the outstanding sum to make representing full and final payment in respect of the separation.
He said in court documents that Courts Guyana Inc had agreed to make the full payment of just over $40 million without any deductions.
However, the company denied the claim saying it was obliged to make income tax deductions under provisions of the Income Tax Act.
Justice Persaud’s decision was made based on an assessment of all the evidence before the court including the termination of services agreement between Courts and Burgess, which clearly showed that the parties had no agreement in relation to taxes. The court held that even if there was an agreement not to pay taxes it was illegal under Section 90 of the Income Tax Act which says that if parties get together not to pay taxes it is illegal.
Counsel for Burgess had insisted that there was an agreement between them not to pay taxes. “Despite several correspondences by e-mail to the defendants company concerning the incorrect deductions and a demand for payment, the defendants company has refused to pay the said sum of money,” Burgess said in court documents.
But Courts through its Company Secretary denied the claims saying it acted under a statutory obligation which required it to deduct income tax from Burgess’s earnings.
The company said the $32.7 million which was paid to Burgess was the sum payable after income tax deductions.
Burgess was represented by Attorney-at-law RN Poonai while Senior Counsel Keith Massiah appeared for Courts.
