Kinyara outgrowers to sue management, URA
OVER 1,000 Kinyara sugarcane outgrowers have threatened to sue the management of Kinyara Sugar Works (KSWL) and Uganda Revenue Authority (URA) over Withholding Tax collections.
By Mary Karugaba
OVER 1,000 Kinyara sugarcane outgrowers have threatened to sue the management of Kinyara Sugar Works (KSWL) and Uganda Revenue Authority (URA) over Withholding Tax collections.
The outgrowers accuse the management of illegally collecting Withholding Tax, contrary to the Financial Act 2002 that amended the 1997 Income Tax Act.
Section 119 of the Income Tax Act that was amended by the 2001 Financial Act exempts supplies or imported raw materials from Withholding Tax.
The outgrowers are demanding a refund of their money since 2001 when the act was amended.
The chairman of Kinyara Sugarcane Outgrowers, Benjamini Byarugaba, told MPs on the finance committee during a tour of the factory that despite complaints from the outgrowers, management had declined to act.
“We have written to management that what they are doing is illegal, but there is no response. We want them to refund all our money since 2002. If they continue, we might have no any alternative but to sue them,†Byarugaba said.
But KSWL’s general manager, Jack Mclean, denied the allegations, saying, “It is not us who collect that tax from them. In fact, we have been negotiating with the Government and URA over that issue. Maybe you misunderstood what they said. Get back to them.â€
However, on January 30, URA wrote to KSWL’s general manager clarifying on the tax issue.
OVER 1,000 Kinyara sugarcane outgrowers have threatened to sue the management of Kinyara Sugar Works (KSWL) and Uganda Revenue Authority (URA) over Withholding Tax collections.
The outgrowers accuse the management of illegally collecting Withholding Tax, contrary to the Financial Act 2002 that amended the 1997 Income Tax Act.
Section 119 of the Income Tax Act that was amended by the 2001 Financial Act exempts supplies or imported raw materials from Withholding Tax.
The outgrowers are demanding a refund of their money since 2001 when the act was amended.
The chairman of Kinyara Sugarcane Outgrowers, Benjamini Byarugaba, told MPs on the finance committee during a tour of the factory that despite complaints from the outgrowers, management had declined to act.
“We have written to management that what they are doing is illegal, but there is no response. We want them to refund all our money since 2002. If they continue, we might have no any alternative but to sue them,†Byarugaba said.
But KSWL’s general manager, Jack Mclean, denied the allegations, saying, “It is not us who collect that tax from them. In fact, we have been negotiating with the Government and URA over that issue. Maybe you misunderstood what they said. Get back to them.â€
However, on January 30, URA wrote to KSWL’s general manager clarifying on the tax issue.