Ugandan courts issue major rulings in tax and telecommunications disputes

The High Court of Uganda has ruled in favor of the Uganda Revenue Authority (URA) in a significant interest dispute involving rice importers. The court overturned a Tax Appeals Tribunal decision that had threatened to increase interest liabilities by approximately Shs13.09 billion. The ruling restores a negotiated settlement where the URA and importers had agreed to 6% simple interest rather than 2% compounded interest, following the importers' payment of over Shs14.54 billion in principal.

In a separate legal matter, the Court of Appeal has significantly reduced damages awarded against MTN Uganda Limited in a dispute with Ezee Money Uganda Limited. The court reduced the original Shs2.3 billion award to Shs300 million, an 87% reduction. While the court overturned findings that MTN violated the Uganda Communications Act, it upheld MTN’s liability for unlawfully interfering with Ezee Money’s contractual relationships under common law.