URA, ROKO fail to settle tax dispute
Dec 20, 2009
ROKO Construction and the Uganda Revenue Authority (URA) have failed to reach an amicable settlement of over sh86b assessment.
By Hillary Nsambu
ROKO Construction and the Uganda Revenue Authority (URA) have failed to reach an amicable settlement of over sh86b assessment.
In September, the court ordered the parties to reach a peaceful settlement over the disputed tax.
The court had also ordered URA to provide Roko with the documents they seized from their offices.
Roko had demanded that URA returns its computers, which had been allegedly confiscated from its offices, fearing that they might be vandalised.
City lawyer Enos Tumusiime, who represents Roko, the leading tax-paying construction firm in the country, told the High Court last Thursday.
Tumusiime said, “We have not been able to reach a settlement. For that matter, it was agreed that we proceed with the hearing of the appeal.â€
According to an application to the High Court, Roko sought orders rejecting the tax body’s assessment, arguing that it was outrageous. It also sought an order to compel the tax body to return its computers, files and discs unconditionally.
According to Dragomir Lakic, the managing director of Roko Construction, the assessment was unfair, unreasonable and arbitrary.
He argued that the company’s turn-over from July 2002 to 2009 was less than sh85b, so the assessment had no basis.
Lakic in his affidavit also contends that his company practices good corporate governance and is mindful of its role as a model tax-payer. It has always strived to meet that objective.
Justice Vincent Musoke-Kibuuka ruled that the court would hear the case on February 26, 2010.
The judge extended the interim order issued last September restraining URA from taking any action against Roko over the disputed taxes until the court disposed of the case.
ROKO Construction and the Uganda Revenue Authority (URA) have failed to reach an amicable settlement of over sh86b assessment.
In September, the court ordered the parties to reach a peaceful settlement over the disputed tax.
The court had also ordered URA to provide Roko with the documents they seized from their offices.
Roko had demanded that URA returns its computers, which had been allegedly confiscated from its offices, fearing that they might be vandalised.
City lawyer Enos Tumusiime, who represents Roko, the leading tax-paying construction firm in the country, told the High Court last Thursday.
Tumusiime said, “We have not been able to reach a settlement. For that matter, it was agreed that we proceed with the hearing of the appeal.â€
According to an application to the High Court, Roko sought orders rejecting the tax body’s assessment, arguing that it was outrageous. It also sought an order to compel the tax body to return its computers, files and discs unconditionally.
According to Dragomir Lakic, the managing director of Roko Construction, the assessment was unfair, unreasonable and arbitrary.
He argued that the company’s turn-over from July 2002 to 2009 was less than sh85b, so the assessment had no basis.
Lakic in his affidavit also contends that his company practices good corporate governance and is mindful of its role as a model tax-payer. It has always strived to meet that objective.
Justice Vincent Musoke-Kibuuka ruled that the court would hear the case on February 26, 2010.
The judge extended the interim order issued last September restraining URA from taking any action against Roko over the disputed taxes until the court disposed of the case.