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Govt. sues DeFontes, alleges taxes unpaid

A broadcasting firm is facing legal action to recover more than a $100,000 in unpaid Government contributions.

Minister of Finance Grant Gibbons has begun three separate court actions against broadcasting firm DeFontes, owners of TV station VSB, to demand a total of $141,000 covering unpaid hospital levy, social insurance and employment tax.

The matter is being handled on behalf of the Finance Ministry by the Attorney-General's Chambers.

Last night a spokeswoman for the Attorney-General's Chambers said: "Every employer by law is required to pay these taxes.

"When they are not paid, the Minister makes a request for them. When the request has been made and the defendant isn't forthcoming, a writ has to be issued.'' The spokeswoman was unable to say what length of time the writs covered, but she said it was "a long period''.

The three writs are against DeFontes (Television) Ltd. for more than $49,653, DeFontes Broadcasting Ltd for $38,850 and against owner Kenneth DeFontes for $52,863.

It is understood the writ against Mr. DeFontes personally covers the TV Centre in Hamilton's Reid Street, which is not a limited company.

The Attorney-General's Chambers spokeswoman said: "We will always have delinquent employers, but it is not very common.'' Last night Mr. DeFontes declined to speak about the legal bombshell.

Instead he issued a two-line statement confirming that he was aware of the legal action.

The statement said: "The matter is the subject of negotiations between our lawyers and the Ministry and involves three separate companies. It should not have been the subject of a writ.'' Mr. Gibbons said he was not aware of every individual court action.

But he said that legal proceedings were a last resort.

He added: "There are sometimes occasions when businesses have had trouble meeting their obligations and as long as they speak to the tax people and work out a programme, we don't take it through the full process. We try to exhaust the normal routes before we proceed with a legal action.'' Shadow Finance Minister, the PLP's Eugene Cox, said the cash to support medical care and social services was vital.

He said: "Companies have a moral obligation and they need reminded they need to fulfill these obligations in the interests of the community as a whole.'' But he added: "This kind of thing has been an on-going problem and I am not surprised to hear of this.'' Mr. Cox said that the Government had a problem with monitoring tax payments because of a lack of staff in the Accountant-General's and the Government Auditor's office.

Mr. Gibbons said that he was unaware of any staffing problems in Government offices concerned with tax collection.