Uganda Revenue Authority wins two High Court cases

The Uganda Revenue Authority (URA) has secured two significant legal victories in the High Court regarding tax disputes and procedural compliance.

In a ruling involving Cheffette Catering Limited, Justice Susan Odongo dismissed an appeal by the company seeking to excuse an 11-month delay in challenging a taxation decision. The company had blamed its former legal counsel for the missed statutory deadlines; however, the court ruled that the taxpayer failed to provide sufficient evidence, such as retainer agreements or affidavits from the lawyers, to prove professional negligence. The judgment establishes that reliance on an advocate does not automatically excuse a failure to meet statutory timelines without credible proof of error.

In a separate matter, the High Court overturned a Tax Appeals Tribunal decision concerning a UGX 14.54 billion rice tax dispute involving David Natweta and others. The court upheld the URA’s position on negotiated interest terms, reversing a tribunal ruling that would have substituted a 2% compound interest rate for the 6% simple interest previously agreed upon in consent agreements. This decision prevents an estimated UGX 13.09 billion in additional interest exposure that would have resulted from the tribunal’s intervention.