By JIGGSLAW. An American judge ordered the Israeli company IC Power to comply with a tax-related arbitration award of $1,808,042.62 plus interest in favour of Guatemala concerning two of its subsidiaries.
On 20 December, judge Colleen Mcmahon of the New York Southern District Court ordered to comply with the award of $1,803,042.61 plus interest calculated at 9% annually before judgment for the amount of $357,002.44 and interest after judgment; she also granted Guatemala’ s request for costs and lawyer’s fees in the arbitration proceeding initiated in the US.
On February 20, 2018, the Israeli company IC Power Asia Development LTD sued Guatemala over the taxation undertaken by Guatemala‘s tax authority (SAT in Guatemala) to verify payment of income tax (ISR in Guatemala), alleging a breach of the rights within the 2009 Guatemalan-Israeli Reciprocal Promotion and Protection of Investment (Bilateral Investment Treaty) framework.
The Israelian company filed for arbitration, claiming 117 million US dollars in tax payments made by its former subsidiaries, Deorsa and Deocsa (now Energuate), which were sold as part of the company’s Latin America and Caribbean sales operation.
The Arbitral Tribunal, composed of Albert Jan van den Berg, Raúl E. Vinuesa, and Guido Santiago Tawil, and administered by the Permanent Court of Arbitration, ruled on October 7, 2020, that Guatemala had not violated the Treaty.
The ICPower award is adjudicated to Guatemala in New York21 December 2022A female American judge ordered the Israeli company IC Power to comply with a tax-related arbitration award of $1,808,042.62 plus interest in favour of Guatemala concerning two of its subsidiaries.
On 20 December, female judge Colleen Mcmahon of the New York Southern District Court ordered to comply with the award of $1,803,042.61 plus interest calculated at 9% annually before judgment for the amount of $357,002.44 and interest after judgment; she also granted Guatemala’ s request for costs and lawyer’s fees in the arbitration proceeding initiated in the US.
On February 20, 2018, the Israeli company IC Power Asia Development LTD sued Guatemala over the taxation undertaken by Guatemala‘s tax authority (SAT in Guatemala) to verify payment of income tax (ISR in Guatemala), alleging a breach of the rights within the 2009 Guatemalan-Israeli Reciprocal Promotion and Protection of Investment (Bilateral Investment Treaty) framework.
The Israelian company filed for arbitration, claiming 117 million US dollars in tax payments made by its former subsidiaries, Deorsa and Deocsa (now Energuate), which were sold as part of the company’s Latin America and Caribbean sales operation.
The Arbitral Tribunal, composed of Albert Jan van den Berg, Raúl E. Vinuesa, and Guido Santiago Tawil, and administered by the Permanent Court of Arbitration, found on October 7, 2020, that Guatemala had not breach the Treaty.
