URA probes estate agent for tax evasion
Nov 25, 2003
UGANDA Revenue Authority (URA) is probing East Lands Agency Limited, a real estate dealer for allegedly failing to pay Value Added Tax (VAT) amounting to over sh100m.
By Grace Matsiko
UGANDA Revenue Authority (URA) is probing East Lands Agency Limited, a real estate dealer for allegedly failing to pay Value Added Tax (VAT) amounting to over sh100m.
The sh106,184,615 tax claim accrues from commercial transactions undertaken by the company worth sh730, 800,000 for nine months, according to documents seen by The New Vision.
The company’s managing director, Ednan Mpuga, recently said the VAT figures of sh106m were a concoction from rival companies.
Mpuga also denied reports that Uganda Revenue Authority confiscated the company’s computers.
“It was a routine check. As government, when they see you advertising a lot they think you have money. They have found no problem with us,†Mpuga said.
He said in addition to giving a written explanation to URA about its tax obligations, the company, cleared some taxes for an amount he declined to divulge.
This reporter saw a letter from URA dated September 11, 2003, from the assistant commissioner tax audit and investigation in URA, Silver Tindimwebwa, saying East Lands Agency had not filed VAT returns since September last year.
“Our records show that you have not filed VAT return (s) for the period 01/09/2002, to 01/05/2003†Tindimwebwa said in the letter which was copied to the commissioner general, URA, Annebrit Aslund.
Tindimweba warned East Lands of “enforcement action without further warning†if the company did not comply with the URA directive.
“Please, if you have already filed the return(s), then furnish this office with a duly stamped and received taxpayers copy for verification†he said.
Some of the estates East Lands deals with located in Kampala fetch as high as US$2,500 (about sh50m) and as low as sh300,000.
Some of East Lands Agency’s clients include the Principal Judge, Herbert Ntabgoba, Court of Appeal Judge, Justice Constance Byamugisha, the former Chief Justice, Wako Wambuzi, former defence permanent secretary, Dr. Ben Mbonye and former head of the Public Service, Florence Mugasha.
UGANDA Revenue Authority (URA) is probing East Lands Agency Limited, a real estate dealer for allegedly failing to pay Value Added Tax (VAT) amounting to over sh100m.
The sh106,184,615 tax claim accrues from commercial transactions undertaken by the company worth sh730, 800,000 for nine months, according to documents seen by The New Vision.
The company’s managing director, Ednan Mpuga, recently said the VAT figures of sh106m were a concoction from rival companies.
Mpuga also denied reports that Uganda Revenue Authority confiscated the company’s computers.
“It was a routine check. As government, when they see you advertising a lot they think you have money. They have found no problem with us,†Mpuga said.
He said in addition to giving a written explanation to URA about its tax obligations, the company, cleared some taxes for an amount he declined to divulge.
This reporter saw a letter from URA dated September 11, 2003, from the assistant commissioner tax audit and investigation in URA, Silver Tindimwebwa, saying East Lands Agency had not filed VAT returns since September last year.
“Our records show that you have not filed VAT return (s) for the period 01/09/2002, to 01/05/2003†Tindimwebwa said in the letter which was copied to the commissioner general, URA, Annebrit Aslund.
Tindimweba warned East Lands of “enforcement action without further warning†if the company did not comply with the URA directive.
“Please, if you have already filed the return(s), then furnish this office with a duly stamped and received taxpayers copy for verification†he said.
Some of the estates East Lands deals with located in Kampala fetch as high as US$2,500 (about sh50m) and as low as sh300,000.
Some of East Lands Agency’s clients include the Principal Judge, Herbert Ntabgoba, Court of Appeal Judge, Justice Constance Byamugisha, the former Chief Justice, Wako Wambuzi, former defence permanent secretary, Dr. Ben Mbonye and former head of the Public Service, Florence Mugasha.