Businessman in court over sh4b tax fraud
Jan 19, 2017
Jagdish Shah was charged with 36 counts in connection with tax fraud and remanded to Luzira Prison
A city businessman has been charged with obtaining sh4.8b from Uganda Revenue Authority (URA) by false pretence.
Jagdish Shah was charged on Tuesday with obtaining money by false pretence, forgery of official documents and uttering false documents.
He was charged before Grade One Magistrate Pamela Lamunu of the Anti-Corruption Court in Kololo, Kampala. He denied the charges.
Shah was charged with 36 counts in connection with tax fraud and remanded to Luzira Prison after he failed to present sureties to stand for him.
Shah's lawyer, Andrew Oluka, asked court to produce him in court today for bail application, saying his client could not arrange for sureties to stand for him by the time he was taken to court.
Prosecution, led by Christa Namutebi and Stuart Aheebwa, said Shah and others still at large in August 2013, with intention to steal, forged export entries claiming to have exported sugar to Kenya, whereas not.
It is alleged that Shah presented fake documents to URA, claiming that he was entitled to a value-added tax refund (VAT) from URA and subsequently, he was paid a VAT refund, which made URA incur a loss.
VAT is an indirect tax on consumption. It is levied on specified goods and services, which are described as taxable supplies, locally manufactured or sold and imported.
According to the charge of obtaining money by false pretence, it is alleged that on several days in 2013 in Jinja, Shah presented himself as the director of Aaryan Uganda Limited and claimed the VAT refund, yet he had not exported sugar to Kenya.
If convicted of forgery of official document under section 349 of the Penal Code, Shah could face up to 10 years imprisonment.
In another account of uttering false documents, prosecution said in October 2013 at URA Jinja offices, Shah fraudulently uttered 22 forged export entries for VAT claim refund, purporting to have exported sugar to Kenya.
Namutebi told court that investigations are still going on and asked for more time to enable Police complete inquires.