MEERA Investments Limited, a company belonging to city tycoon Sudhir Ruparelia with many properties around Kampala, is indebted to the tune of sh36b to the Uganda Revenue Authority (URA).
A source said the money accumulated after the company failed to remit Corporation tax, VAT and PAYE.
â€œMeera Investments has not paid taxes to Uganda Revenue Authority amounting to sh36b.
â€œURA has been engaging him to find a way that would lead to tax recovery but he has not cooperated,â€ the source said.
The source said there had been talks between URA and Sudhir to find a way of reconciling but they aborted last week after the tycoon walked out on them.
â€œHe agreed to meet URA officials to find a way of reconciling last week but talks collapsed when he walked out of the meeting after a disagreement. It has not been an easy ride for that gentleman to pay taxes,â€ the source said.
But Sudhir said URA was reinstating an issue that was resolved in 2000.
He said MEERA had been given tax incentives by the Uganda Investment Authority from 1997 to 2000, which URA was disputing.
Sudhir said the claim was a bogus act of malice by some people at URA.
He said he had sued URA and the Ministry of Finance in the Commercial court. He said URA was demanding sh10b in tax arrears and the remainder in penalties.
MEERA Investments was incorporated in 1994 and is the single largest private property owner in the country, both residential and commercial in prime locations.
Some of the properties under MEERA include Crane Chambers, Customs House, Baumann House and most recently the former British High Commission premises.
Efforts to get a comment from URA were futile as officials refused to comment, saying they could not say anything about their clients.
Sudhir owes URA 36 billion