URA boss loses case against Sudhir

Jan 20, 2009

THE Supreme Court has dismissed with costs an appeal by the Commissioner General of the Uganda Revenue Authority (URA), Allen Kagina, challenging a suit brought against her by Meera Investments Limited owned by city tycoon Sudhir Ruparelia

THE Supreme Court has dismissed with costs an appeal by the Commissioner General of the Uganda Revenue Authority (URA), Allen Kagina, challenging a suit brought against her by Meera Investments Limited owned by city tycoon Sudhir Ruparelia, reports Hillary Nsambu.

Kagina had appealed to the Supreme Court, saying Meera Investments could only sue URA and not her as the commissioner general.

Meera sued Kagina jointly with URA disputing taxes worth sh36b, which she wanted the company to pay. Meera argued that they were not obligued to pay because the Uganda Investment Authority (UIA) had given Meera a statutory incentive.

Meera argues that it was not liable to pay the taxes because it had been granted statutory incentive by the Uganda Investment Authority. But URA disputes the incentive.

Meera’s main suit disputing the tax is still pending in the High Court.

The coram was headed by the Chief Justice, Benjamin Odoki. The other Justices were John Wilson Tsekooko, Joseph Mulenga, George William Kanyeihamba and Bart Katureebe.

The judges ruled unanimously yesterday that Kagina as the commissioner general, can be sued in her official capacity. They cited the Income Tax Act and Value Added Tax Act that have provisions for the commissioner general to sue and to be sued.

“It is thus clear that the commissioner is a competent party to the Meera Investments suit. Certainly if she can sue to recover tax, she can be sued by a party unhappy with tax assessments made by the commissioner general or officers under her,” the court ruled.

This was in agreement with Meera’s lawyer Alex Rezida of Nangwala, Rezida and Company Advocates.

The court agreed with Kagina’s lawyer, Dr Joseph Byamugisha, that tax laws give powers to the commissioner general to sue expeditiously so that Government revenue is not delayed in terms of collection.

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