URA wins sh400m case
Jan 31, 2003
UGANDA Revenue Authority (URA) rightly withheld tax on dividends of Rwenzori Tea Investments, the Tax Appeals Tribunal (TAT) ruled this week.
By Hillary Nsambu
UGANDA Revenue Authority (URA) rightly withheld tax on dividends of Rwenzori Tea Investments, the Tax Appeals Tribunal (TAT) ruled this week.
Rwenzori Tea Investments Limited, a growing, manufacturing and marketing tea company, had under protest paid sh484,300,828 to URA as withholding tax on dividends.
It had also sought an order for a refund of the whole amount from URA.
The tea company, which said it had also declared dividends to its shareholders on condition that it would disburse it when cash flow permitted and if the shareholders agreed in writing, sought from TAT the interpretation of the law.
They also sought a ruling on whether withholding tax on dividends was due and payable upon declaration or upon actual payment of those dividends and whether the company was liable to pay such tax or whether it was entitled to a refund of that tax.
Presided over by B.N.Kamugasha, J. Iica, G.W. Mugerwa and Sam Khaukha, the tribunal ruled that withholding tax on dividends became due and payable when the dividends were declared.
UGANDA Revenue Authority (URA) rightly withheld tax on dividends of Rwenzori Tea Investments, the Tax Appeals Tribunal (TAT) ruled this week.
Rwenzori Tea Investments Limited, a growing, manufacturing and marketing tea company, had under protest paid sh484,300,828 to URA as withholding tax on dividends.
It had also sought an order for a refund of the whole amount from URA.
The tea company, which said it had also declared dividends to its shareholders on condition that it would disburse it when cash flow permitted and if the shareholders agreed in writing, sought from TAT the interpretation of the law.
They also sought a ruling on whether withholding tax on dividends was due and payable upon declaration or upon actual payment of those dividends and whether the company was liable to pay such tax or whether it was entitled to a refund of that tax.
Presided over by B.N.Kamugasha, J. Iica, G.W. Mugerwa and Sam Khaukha, the tribunal ruled that withholding tax on dividends became due and payable when the dividends were declared.