Kampala import firm director pleads guilty to tax fraud

KAMPALA - The Director of Alitu Quality Limited, based in Kampala, has pleaded guilty to making false tax statement to a Uganda Revenue Authority tax officer in relation to sh14 million.

On September 19, Dhamuzungu Bamutya, 39, pleaded guilty to one count before the Nakasero-based Anti-Corruption Court, presided over by Principal Grade One Magistrate Christopher Opit. 

Magistrate Opit subsequently ordered Bamutya to pay a fine of sh6 million, in addition to the sh14 million in taxes he had failed to clear.

The prosecution stated that on October 3, 2022, at Plot 172, Moonlight Building on Nkrumah Road in Kampala, Bamutya, as director of Alitu Quality Limited, made a false statement to a tax officer in a Value Added Tax return for September 2022, purporting to have purchased goods from Oscar General Hardware.

Brief facts of the case

According to the brief facts presented in court by legal officer Davis Thomas Lomuria, Bamutya was charged under Section 67 of the Tax Procedures Code Act.

His company, which deals in general merchandise, obtained a Tax Identification Number in December 2018. The company has been filing tax returns and has two directors: Bamutya and Justine Najjuma. 

Lomuria said investigations by the URA’s Tax Investigations Department revealed that Alitu Quality Limited had presented fictitious purchases of goods worth sh80 million, with a corresponding Value Added Tax claim of sh14 million from Oscar general hardware.

Lomuria further stated that inquiries made with Oscar General Hardware established that the transaction claimed by Alitu Quality Limited had never taken place. When questioned, Bamutya said it was his accountant, Arone Simba, who had provided the information. 

Lomuria asked court to impose a deterrent sentence, arguing that offences of giving false information to URA have become rampant and are undermining tax collection. He added that a tough sentence would send a clear message to would-be offenders.

Bamutya, on his part, asked court for a lenient sentence, arguing that he is a family man with five children who would suffer if he were given a custodial sentence. 

He added that he regretted his actions.