Civil aviation sues URA
Jul 19, 2009
THE Civil Aviation Authority (CAA) has dragged the Uganda Revenue Authority (URA) to the Commercial Court for allegedly trying to tax them illegally.<br>The CAA argued in a suit filed last week that it was illegal for the tax body to assess it for paymen
By Hillary Nsambu
THE Civil Aviation Authority (CAA) has dragged the Uganda Revenue Authority (URA) to the Commercial Court for allegedly trying to tax them illegally.
The CAA argued in a suit filed last week that it was illegal for the tax body to assess it for payment of value added tax (VAT) worth over sh25.65b.
This was after URA had even confirmed in writing that no VAT would be applicable under the airport passenger service charges.
Through Kampala Associated Advocates, the aviation authority also alleges that URA’s assessment of the purported tax was contrary to the local laws and international conventions to which Uganda is a signatory therefore, the assessment is baseless and illegal.
CAA asked court to put a permanent injunction restraining the tax body from collecting the assessed tax. CAA is also seeking damages for the loss it has suffered because of URA’s misrepresentations about the tax liability.
The aviation authority also pointed out that in October 2004, the Commissioner General, Allen Kagina, wrote to them confirming that the airport passenger service charges were zero-rated.
CAA also alleged that Kagina confirmed that no VAT would be applicable and that the previous assessment of airport passenger service charges was accordingly cancelled.
However, CAA added that they were surprised when the URA in a June 22 letter demanded VAT to the tune of over sh25.65b as air navigation fee for both local and international aircrafts landing, parking and fuelling in disregard of the law.
The aviation body said although the issue had earlier been reviewed and considered by both parties, URA insisted on collecting the illegal tax.
The court gave Kagina 15 days to justify her actions.
“Whereas the Civil Aviation Authority has instituted a suit against you claiming declaratory orders, you are required to file a written statement of defence within 15 days from the date of service of this summons.
“Should you fail to do so within the specified period, the plaintiff may proceed with the suit and judgment may be given in your absence,†the summons by the court registrar read.
THE Civil Aviation Authority (CAA) has dragged the Uganda Revenue Authority (URA) to the Commercial Court for allegedly trying to tax them illegally.
The CAA argued in a suit filed last week that it was illegal for the tax body to assess it for payment of value added tax (VAT) worth over sh25.65b.
This was after URA had even confirmed in writing that no VAT would be applicable under the airport passenger service charges.
Through Kampala Associated Advocates, the aviation authority also alleges that URA’s assessment of the purported tax was contrary to the local laws and international conventions to which Uganda is a signatory therefore, the assessment is baseless and illegal.
CAA asked court to put a permanent injunction restraining the tax body from collecting the assessed tax. CAA is also seeking damages for the loss it has suffered because of URA’s misrepresentations about the tax liability.
The aviation authority also pointed out that in October 2004, the Commissioner General, Allen Kagina, wrote to them confirming that the airport passenger service charges were zero-rated.
CAA also alleged that Kagina confirmed that no VAT would be applicable and that the previous assessment of airport passenger service charges was accordingly cancelled.
However, CAA added that they were surprised when the URA in a June 22 letter demanded VAT to the tune of over sh25.65b as air navigation fee for both local and international aircrafts landing, parking and fuelling in disregard of the law.
The aviation body said although the issue had earlier been reviewed and considered by both parties, URA insisted on collecting the illegal tax.
The court gave Kagina 15 days to justify her actions.
“Whereas the Civil Aviation Authority has instituted a suit against you claiming declaratory orders, you are required to file a written statement of defence within 15 days from the date of service of this summons.
“Should you fail to do so within the specified period, the plaintiff may proceed with the suit and judgment may be given in your absence,†the summons by the court registrar read.