FOCUSED ON RESULTS

The Privy Council delivered a big win for tax planning for multinational enterprises in its decision Methanex v. BIR. This was an appeal from the Court of Appeal which concerned a withholding tax bill of $28 million levied on Methanex Trinidad & Tobago. The question was whether the paying up of the Dividend through Methanex Barbados created an artificial or fictitious transaction. The Court found for the taxpayer, therefore no tax was payable.