Davindra Maharaj and another (Appellants) v The Minister of Finance and 2 others (Respondents) (Trinidad and Tobago)

Case summary

Case ID

JCPC/2025/0059

Jurisdiction

Trinidad and Tobago

Parties

Appellant(s)

DAVINDRA MAHARAJ and THE MOTOR INSURANCE BUREAU ASSOCIATION OF TRINIDAD AND TOBAGO

Respondent(s)

THE MINISTER OF FINANCE

THE BOARD OF INLAND REVENUE

THE ATTORNEY GENERAL OF TRINIDAD AND TOBAGO

Issue

(1) Was it unlawful to collect taxes and remit these taxes towards a fund for the compensation of victims of uninsured drivers in circumstances where this fund was not lawfully established? (2) Did collecting taxes and remitting them towards the fund for the compensation of victims of uninsured drivers in circumstances where this fund was not lawfully established breach the first appellant’s legitimate expectation that taxes would only be applied in accordance with the purposes of the Miscellaneous Taxes Act Chap 77:01? (3) Did the failure to establish a scheme for the compensation of the victims of uninsured drivers breach the second appellant’s legitimate expectation that such a scheme would be established? (4) Was it unreasonable for the Government of Trinidad and Tobago not to take steps to establish a compensation fund for the victims of uninsured drivers?

Facts

In September 2007, the government proposed to use part of the proceeds of the Insurance Premium Tax levied pursuant to the Miscellaneous Taxes Act Chap 77:01 to establish a fund to compensate victims of uninsured drivers (the “Compensation Fund”). In 2008, the government started to carry out this proposal. Money was set aside and placed in a suspense account at the Central Bank of Trinidad and Tobago. The government planned to use this money to establish the Compensation Fund. Before the Compensation Fund could be established, there was a change of government. In 2013, the new government announced that it also intended to establish a Compensation Fund using the proceeds of the Insurance Premium Tax. The new government continued to pay the proceeds of the Insurance Premium Tax into the suspense account at the Central Bank. To date, the Compensation Fund has not been established. The suspense account now has a balance of over one billion Trinidad and Tobago dollars. This is because no money could be paid out of the account until the Compensation Fund was established. The appellants challenged, by way of judicial review, the decision to levy Insurance Premium Tax for the purpose of compensating victims of uninsured drivers and the failure to establish the Compensation Fund. The High Court dismissed the appellants’ claims. The Court of Appeal upheld the decision of the High Court.

Date of issue

1 July 2025

Case origin

Appeal As of Right

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