Supreme Court Denies MRA’s Privy Council Appeal in MV Wakashio Case

On Tuesday, 25 February 2025, the Supreme Court delivered a crucial verdict, concluding that the Mauritius Revenue Authority (MRA) would not be allowed to appeal to the Privy Council. This ruling carries significant weight in a contentious tax dispute involving approximately Rs 7 million related to the hiring of police helicopters used in the rescue of the MV Wakashio.

This matter dated back to the ill-fated grounding of the MV Wakashio on 25 July 2020, close to the picturesque shores of Pointe-d’Esny in south-eastern Mauritius.

Following the incident, the Singaporean firm Smit Salvage Pte Ltd was commissioned by the vessel’s owners, Okiyo Maritime Corporation, to lead the salvage operations.

In an effort to clarify the tax implications of the helicopter rentals, Smit Salvage Pte Ltd approached the MRA on 9 October 2020 regarding the applicability of Value Added Tax (VAT) for the services rendered.

The MRA, however, maintained that the rental of the helicopters was indeed subject to tax.

Unsatisfied with this response, Smit Salvage Pte Ltd sought intervention from the Assessment Review Committee (ARC), which, on 19 November 2020, concluded that it did not possess the authority to overturn the MRA’s ruling.

Now, in a development that echoes through the corridors of justice, the Supreme Court’s decision effectively renders the MRA’s initial conclusion beyond further legal contestation.

This is leaving Smit Salvage Pte Ltd and the surrounding issues regarding the helicopter rentals in a precarious situation.

Source: Defi Media