By Andante Okanya
A city trader based in the city business hub of Kikuubo, and the Uganda Revenue Authority (URA), Commissioner General are feuding over a sh188.6m tax imposed on the trader’s business.
Maimuna Nanfuka has filed a civil suit at the civil division of the High Court in Kampala, protesting the amount URA ordered her to pay. She asserts that the tax arrears are fictitious and arose without prior tax audit.
“The defendant did not give workings to show sources of the said tax. The defendant did not raise an assessment in order to give the plaintiff chance to object,” Nanfuka asserts.
The defendant in the suit is listed as ‘commissioner general, Uganda Revenue Authority’. The trader is the proprietor of Soft Chain Distributors, which deals in general merchandise.
Nanfuka contends that she is not indebted to URA, and that the sum is erroneous. She wants court to permanently restrain URA from demanding for the sum.
Nafuka wants court to disqualify a number of notices sent to her by the tax body, reminding her to clear the debt.
She asserts that her business is in imminent danger, since the tax body has threatened to confiscate her property.
Nanfuka purports that her October 11, 2013 request for a compilation of sources of the purported tax, was ignored.
URA has since issued a warrant of distress to Nanfuka dated October 11, 2013. It was signed by the manager debt collection Abudu- Sallam Waiswa.
A warrant of distress is a document that authorises a tax body officer to seize a person's goods. It is regulated by statute to enforce the performance of a tax obligation.
Court documents show that on March 3, URA sent Nanfuka an email to audit her value added tax (VAT).
Documents also show that URA made a VAT computation report that gave her a tax liability of sh4.6m, which she paid.
Nanfuka states that URA estimated her tax at sh167.5m without putting into consideration the input tax she had paid.
However, a URA document dated October 11, 2013, attached in the case file, shows that Nanfuka’s outstanding debt is currently sh188.6m.
Kagina is yet to file her response. A hearing date is yet to be scheduled.