Company director, accountant charged over sh885m tax evasion

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The director of M-Lukka Associates Limited has been charged with allegedly providing false information to a Uganda Revenue Authority (URA) officer regarding sh885.3m in taxes.

John Festus Muwonge, 42, a director and resident of Katabi in Wakiso district, was jointly charged with Richard Opedes, 32, an accountant and resident of Kyaliwajjala, Namugongo, in Wakiso district.

Muwonge was charged with two counts of making false statements to a tax officer, while Opedes faces one count of aiding a tax offence, contrary to Section 69(1) of the Tax Procedures Code Act, Cap 343.

On March 10, 2024, Muwonge and Opedes appeared before the Anti-Corruption Court in Nakasero, presided over by Grade One Magistrate Esther Asiimwe. Both were remanded to Luzira Prison until March 21, 2024, when their case is scheduled for mention and consideration of bail applications.

The prosecution, led by Thomas Davis Lomuria, in charge of litigation at URA, alleges that Muwonge, as director of M-Lukka Associates Limited, knowingly made false statements to a tax officer concerning value added tax (VAT) returns for December 2020. Specifically, he purported that the company had purchased goods worth sh852m, inclusive of VAT, from Rojos Logistics Limited, which was not the case.

In the second count, the prosecution alleges that Muwonge, as a director at M-Lukka Associates Limited, made a false statement to a tax officer claiming to have made purchases of goods valued at sh33.1m from TSE Consult Uganda, including VAT returns.

Regarding the charge against Opedes, the prosecution alleges that during 2020, in Wakiso district, as the person in charge of purchases for M-Lukka Associates Limited, he aided Muwonge in making false statements to a tax officer in relation to VAT returns for the month of December 2020, purporting to have purchased goods from Rojos Logistics Limited. They denied the charges.

Lomuria informed the court that investigations into the case were still ongoing. He requested an adjournment to a later date to allow the prosecution to update the court on the status of the investigations.

During the proceedings, defence lawyers Gordon Kifudde and Yvonne Kabatesi requested that the court permit them to apply for bail on behalf of the accused, emphasising their clients' legal rights. 

However, Magistrate Asiimwe indicated that her current schedule was too congested to accommodate the bail application at that time. She further noted that upcoming hearings were expected to be lengthy and, consequently, she scheduled the bail hearing for March 21, 2024.