Chief Justice Sir Ian Winder ruled that Imagine Nation Company, the resort destination in the Exuma Cays owned by world-famous magician David Copperfield, must pay $2.2 million in outstanding real property taxes to the government.

The government, through the treasurer, argued that Imagine Nation, which owns and operates the hotel resort Islands of Copperfield Bay, owed the money for outstanding real property taxes, surcharges and penalties for Rudder Cut Cay and Little Lansing Cay from 2007 to 2014, the ruling noted.

Imagine Nation said when it purchased Rudder Cut Cay, Little Lansing Cay and Musha Cay, it thought the government "would grant the entire resort concessions and exemptions pursuant to the Hotels Encouragement Act".

The original owners of the cays, Janet and John Melk, entered into a Hotels Encouragement Agreement with the government in 1996 and obtained tax exemptions for the construction and operation of the Musha Cay Resort.

The exemptions did not extend to Rudder Cut Cay or Little Lansing Cay, the ruling noted.

In 2007, the treasurer wrote to Imagine Nation's lawyer advising that it was required to submit real property tax declarations for the two islands and pay taxes when they became due.

In 2015, Imagine Nation was advised by the treasurer of its outstanding taxes.

Later that year, shortly before the treasurer started legal action against Imagine Nation, the company applied to the Bahamas Investment Authority requesting that the three cays be included under a new agreement that included real property tax exemptions.

The agreement was granted in 2016. In a memorandum to the financial secretary that year, the director of investment confirmed that Imagine Nation was still liable for the outstanding real property taxes.

During the trial, Copperfield took the witness stand.

Winder said, "In as much as Imagine relies on an understanding by Mr. Copperfield that the acquisition of Rudder Cut Cay and Little Lansing Cay would be afforded exemptions either at the time of the purchase or at the time of the amended HEA (Hotels Encouragement Act), I did not accept his evidence.

"Having seen and observed Mr. Copperfield, I was not satisfied, on balance, that he properly recollected conversations on this issue but rather he perhaps perceived that he would receive the exemptions based on his plans for the islands.

"He admitted under oath that his recollection with respect to certain key dates and events were foggy. When asked about certain key facts, he became evasive and asked to rely on what was in his witness statement.

"When asked if Imagine was communicated to by the government in writing, that it had agreed to grant concessions with respect to Rudder Cut Cay and Little Lansing Cay, or agree to pay real property tax concessions, Copperfield responded that 'I wish I could tell you for sure. My mind is kind of foggy. I think the purchase was made and then the meeting happened after that. I could be wrong about this.'"

Winder noted that Copperfield said he developed this understanding from former Prime Minister Perry Christie and former Deputy Prime Minister Philip Davis. However, Winder said no effort was made to call either man as a witness.

Winder said he will hear arguments regarding costs at a later date.

Chizelle Cargill and McFalloughn Bowleg appeared for the treasurer. Gail Lockhart-Charles and Candice Knowles appeared for Imagine Nation.

The post CJ rules that David Copperfield's company has to pay $2.2M in outstanding taxes appeared first on The Nassau Guardian.

The post CJ rules that David Copperfield's company has to pay $2.2M in outstanding taxes appeared first on The Nassau Guardian.

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