Parties in sh9.6b tax fraud case directed to reach consensus on disputed facts

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The Nakasero-based Anti-Corruption Court has directed parties in a case where a city businessman is accused of giving false statements to a Uganda Revenue Authority (URA) tax officer in relation to sh9.6 billion to agree on undisputed facts.

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

Although the case had been fixed for hearing on September 19, 2025, it was deferred to November 6, 2025.

Prosecution, led by URA legal officers Davis Thomas Lomouria and Stella Nayebare, informed Principal Grade One Magistrate Paul Mujuni that they had not yet agreed on the undisputed facts and documents.

“We disclosed the documents we intend to rely on; however, we have not yet conferred to agree on the undisputed facts. We agreed with the defence to file a memorandum, and therefore we seek an adjournment to another date,” Lomuria said.

Evans Ochieng, the lawyer representing Gassama, also confirmed to court that they had not yet agreed on the facts.

Magistrate Mujuni directed both parties to agree on the facts and file them in court within two weeks. He then fixed the case for hearing on November 6, 2026.

Gassama was first charged on December 8, 2023, but the case has 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 sh9.6billion

Prosecution further said in the same period Gassama at Sarah Mall, Martin Road, in Kamapala, 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 in 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 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 sh37.7m) 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. He is out on bail.