Spaghetti Firm Wins Tax Dispute
Jul 11, 2003
THE Tax Appeals Tribunal (TAT) has ordered the Uganda Revenue Authority (URA) to release 2,200 cartons of spaghetti it had confiscated from an Cynthiano Wholesalers Limited.
By Hillary Nsambu
THE Tax Appeals Tribunal (TAT) has ordered the Uganda Revenue Authority (URA) to release 2,200 cartons of spaghetti it had confiscated from an Cynthiano Wholesalers Limited. URA claimed the company was trying to evade taxes.
TAT ruled that the URA was wrong to assume that Cynthiano had under-declared its goods when the firm had clearly presented its documentary evidence.
URA had adjusted tax assessment from sh6,012,661 to sh9,320,439.
hiked the Kashillingi and Anthony Wabwire of Akampurira and Company Advocates, the lawyers for Cynthiano Wholesalers, that the URA relied on assumptions, which resulted in absurd assessment.
The tribunal waschaired by G.W.Mugerwa. The other members were J.Lica and P.A.Namugowa. Anna M.Bitature represented the URA.
Cybthiano Wholesealers complained that it imported 2200 cartons of Alimentary Posta Santa Lucia, a Spaghetti brand, at a value of US$1.45 a carton, c.i.f. Mombasa. The consignment was assessed at sh6,012,661.
But, the URA queried it and a new assessment was put at sh9,320,439, using a market survey instead of the bill of entry that was attached to the consignment, hence the appeal to TAT.
TAT ruled that Cyntiano Wholesalers should get back its sh3m it had deposited in the Tribunal as security for costs.
It also ruled that the tax assessment should be based on a value at US$3.6 per carton and that any tax over and above that to be due should be refunded to Cynthiano Wholesalers.Ends
THE Tax Appeals Tribunal (TAT) has ordered the Uganda Revenue Authority (URA) to release 2,200 cartons of spaghetti it had confiscated from an Cynthiano Wholesalers Limited. URA claimed the company was trying to evade taxes.
TAT ruled that the URA was wrong to assume that Cynthiano had under-declared its goods when the firm had clearly presented its documentary evidence.
URA had adjusted tax assessment from sh6,012,661 to sh9,320,439.
hiked the Kashillingi and Anthony Wabwire of Akampurira and Company Advocates, the lawyers for Cynthiano Wholesalers, that the URA relied on assumptions, which resulted in absurd assessment.
The tribunal waschaired by G.W.Mugerwa. The other members were J.Lica and P.A.Namugowa. Anna M.Bitature represented the URA.
Cybthiano Wholesealers complained that it imported 2200 cartons of Alimentary Posta Santa Lucia, a Spaghetti brand, at a value of US$1.45 a carton, c.i.f. Mombasa. The consignment was assessed at sh6,012,661.
But, the URA queried it and a new assessment was put at sh9,320,439, using a market survey instead of the bill of entry that was attached to the consignment, hence the appeal to TAT.
TAT ruled that Cyntiano Wholesalers should get back its sh3m it had deposited in the Tribunal as security for costs.
It also ruled that the tax assessment should be based on a value at US$3.6 per carton and that any tax over and above that to be due should be refunded to Cynthiano Wholesalers.Ends