After judgment rendered in court, EBN must pay $90 million

Published by El Universo

The Tax Litigation Court Room of the National Court denied an appeal submitted by Exportadora Bananera Noboa (EBN), last February 3. In this way, the court affirmed the debt of the private company to the State which, to date, has reached US $90 million.

This was stated yesterday by Internal Revenue Service Director, Carlos Marx Carrasco, who remarked, “Nothing bad lasts forever,” and that the Guayaquil Jurisdiction Judge, Dorian Rodriguez, has been ordered to freeze the company’s accounts. In addition, he explained that the measure could also be expanded to EBN’s shareholders.
However, collection might be hindered because on August 6, 2009 Bananera Noboa made a trade agreement with Banacont which principally stipulated that EBN give Banacont its trading portfolio; the use of its assets, assuming its operating expenses including those invoiced to EBN by third parties, as well as payments of liabilities, capital and interests that expire during the length of the agreement.

Therefore, according to Carrasco, if Bananera does not pay its debt, they may have to collect the debt from Banacont.

The trial of Bananera arose after an audit in which the IRS detected that tax payment had been evaded in 2005, based on changes in referent export prices for fruit. The initial debt was $46 million, but with the passing of the years and the addition of fines and interests, it now amounts to $90 million.
Carrasco remarked that there is no possibility for Bananera to submit further appeals to delay the procedure.