Southgobi Sands loses appeal in tax evasion case


The Court of Appeals ruled on the overturning of a guilty verdict for Southgobi Sands LLC (SGS) on charges of tax evasion on Wednesday, and made a decision to uphold the initial verdict of the Second District Criminal Court.
The initial verdict found U.S. citizen Justin Kapla, Philippine nationals Hilarion Cajucom Jr. and Cristobal David, and SouthGobi Sands LLC guilty of charges of tax evasion and issued a fine of 35 billion MNT to be paid by SGS. The three former employees were sentenced to prison terms of up to five years and ten months on January 30, 2015, but received a pardon from President of Mongolia Ts.Elbegdorj at the end of February.
The Second District Criminal Court declared that SGS was financially liable as a civil defendant for the penalty of 35 billion MNT, but the company refused to pay and filed an appeal. The court’s rulings can be appealed if any party involved in a case disapproves of the decision of the or makes a complaint during investigation procedures. However, the Court of Appeals decided that the appeal of SGS filed by their attorney, Ts.Tserenjee, was unjustified, and ruled that the company should pay the penalty to the Ministry of Finance.
The court transferred the case to Bailiff Services of Mongolia and over 600 million MNT in accounts held by SGS at Khaan, Golomt and Trade and Development banks, deposits in Gurvantes soum of Umnugovi aimag, and two LIEBHERR excavators remain seized as damage collateral.
Following the presidential pardon of Kapla and Cajucom’s guilty charges as instigators in tax evasion, and David’s conviction as an accomplice, some local economists and onlookers have been critical of the decision, suggesting that Kapla and the others should not have been considered for a presidential pardon.


Short URL: http://ubpost.mongolnews.mn/?p=13892

Posted by on Mar 26 2015. Filed under Онцлох мэдээлэл. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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