News Release from HM Governor’s Office, Montserrat

The Turks and Caicos Islands Government (TCIG) received over $8 million in settlement of its civil recovery claim arising out of the underpayment of Stamp Duty on the 2006 sale of Emerald Cay yesterday, Mon, 22 Oct 2012.

In June 2011 the civil recovery team obtained a judgment against Emerald Cay Limited and Worldwide Commercial Properties Limited, subsequently quantified at just under $9.3m by the Court earlier this year, with interest and costs, following the discovery of substantially underpaid stamp duty on the 2006 sale of Emerald Cay. Since that date the Government has been seeking to enforce that judgment by forcing a sale of Emerald Cay.

The property was sold today by Emerald Cay Limited, and the Government has received the total sum of $8.13m by way of a cash payment and a payment of stamp duty on the sale in satisfaction of the judgment.

The payment brings to a conclusion one of the most significant cases of the Government’s civil recovery programme and represents a substantial recovery for the Government. Attorney General Huw Shepheard commented:

“We are delighted that the judgment handed down earlier this year has been satisfied. Whilst obtaining judgments such as this is highly important and demonstrates the Government’s determination to deal with Stamp Duty evasion, the receipt of such a large sum represents another significant recovery to the benefit of the Islands. It also represents another very good result for the civil recovery team and their ongoing efforts”

In accordance with the approach set out in the 2012/13 budget speech in May, this windfall receipt will be used to pay down TCIG debt.

Further information

The civil recovery team, led by London law firm Edwards Wildman, was engaged in December 2009 following the recommendations of the Commission of Inquiry Report by Sir Robin Auld.  To date, the team has recovered over $15.5m in cash and nearly 2,500 acres of land for the Government in over 40 separate claims with more significant recoveries expected.  The Emerald Cay payment follows the earlier summer settlement of the Salt Cay litigation with the return of a large part of that Island to the Government’s hands and a payment of $7m in cash.