Kampala businessman to face trial over sh9.6b tax evasion

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The trial of a businessman in Kampala accused of giving false statements to a Uganda Revenue Authority (URA) tax officer in relation to sh9.6 billion is set to begin on Friday (September 19).

Sikhou Gassama, 61, faces charges of making a false statement, making a false declaration, failure to maintain proper records, and money laundering.

The case will be heard at the Anti-Corruption Court in Nakasero, presided over by Principal Grade One Magistrate Paul Mujuni.

Gassama was first charged on December 8, 2023, but the case had since stalled pending investigations.

Charges

Gassama faces the charges under sections of 58(1)(a) of the Tax Procedures Code Act of 2014, making false declaration contrary to section 203(b) of the East African Community Management Act, 2004, failure to maintain proper records contrary to section 56 of the Tax Procedures Code Act of 2014, and money laundering contrary to section 116(b) and 136(2)(a) of the Anti- Money Laundering Act, of 2017 as amended.

It is alleged that Gassama, between 2016 and 2022 at Sarah Mall, Martin Road, in Kampala, being the director of Gassama & Brothers Company Limited, filed fake income returns tax to a tax officer at URA, by allegedly under declaring a total income of sh 9.6b.

Prosecution further said that in the same period, Gassama at Sarah Mall, Martin Road, in Kampala, central division, being the director of Gassama & Brothers Company Limited, did not maintain proper business records for URA tax purposes.

Regarding money laundering charges, it is alleged that Gassama, from 2016 to 2022, at Sarah Mall, Martin Road, in Kampala, intentionally concealed and disguised the source of the money, it is alleged that he knew that sh9.6b was a proceed of the crime.

What the law says

A person who is found guilty of making a false statement to a tax officer is liable to two years imprisonment or a fine not exceeding sh960,000.

Under Section 203 of the East African Community Customs Management Act, 2004, a person found guilty of the offence shall be liable to imprisonment for a prison term not exceeding three years or to a fine not exceeding $10,000 (about sh37.7 million) or both.

Failure to keep proper records also attracts two years imprisonment upon conviction or a fine not exceeding sh960,000.

Under section 3 of the Anti-Money Laundering Act, any person convicted of the offence of money laundering is liable to 15 years imprisonment or a fine not exceeding sh2b. 

Gassama is currently out on bail.