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Mauritius Revenue Authority director general v Paradis Brabant Hotel, Privy Council
The taxpayer firm accounted for hotel and revenue tax at the rate prevailing on the day it received payment for relevant goods and services.
The Mauritius Revenue Authority (MRA) argued that the rate should be the one from when the supply was made.
The Mauritius Supreme Court decided in favour of the taxpayer.
The MRA appealed to the Privy Council, the board of which said it was clear from the Hotel and Restaurant Tax (Mauritius) Act 1986, s 3(1) that liability to tax arose on receipt.
The arguments posed by the MRA had some validity, but the natural meaning of s 3 when read in conjunction with Finance (Mauritius) Act 1998, s 24 was that the rate of hotel and revenue tax was that in place on the day of receipt of payment.
The tax authority’s appeal was dismissed.
