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Company `alter ego' faces playful judge

Tempers flared in Magistrates' Court on Thursday as the general manager of Darrell Contracting Services Limited questioned why he was being held liable for his company's actions.

Corey Butterfield contested being bailed for $2,500 after pleading not guilty on behalf of the company to 89 counts of tax-related offences.

The angry man said: "I'm an employee, not a director... How are you going to bail me if I am not liable? I just happen to be the one who was there when the papers were served."

Acting Senior Magistrate Carlisle Greaves told the man: "You are an alter ego of the company. Men go to jail all the time for the actions of their companies."

Once Mr. Greaves refused to change his position, a clearly agitated Butterfield stormed out of the courtroom into the hallway.

The judge ordered that Butterfield return as he was not finished dealing with the matter.

The man had be calmed down several times throughout the exchange by his lawyer and other court staff.

To support his claim, Butterfield read from the Taxes Management Act, 1976, which stated that "service on a company of any document pursuant to the Taxes Management Act may be effected by serving it on the proper officer of the company, which in this case should have been the Corporate Secretary."

Mr. Greaves acknowledged that Butterfield should not have been served but said that this mistake should have been realised before the matter came before him.

He told Crown prosecutor Graveney Bannister that he was "only playing with the man" as Butterfield had been so disrespectful to the courts.

Butterfield did not take kindly to this comment and responded: "Who are you playing with? This is a serious matter."

Bail remained for Butterfield at $2,500 and he will appear in court again on September 23.