City businessman pleads guilty over tax evasion

A top city businessman accused of evading taxes to the tune of sh150m has pleaded guilty to the charges and accepted to refund the money.

David Mutebi reached an agreement under plea bargain with Uganda Revenue Authority(URA) to plead guilty to two charges of interference with goods under customs control contrary to section 203 of the East African customs management Act.

Yesterday, Mutebi who was not represented by a lawyer appeared before Anti- Corruption Court Magistrate Peter Lochomin in Kololo, Kampala and admitted the offence. He was in addition ordered to pay a fine of sh12m or serve two years imprison in default.

Stuart Aheebwa, a state attorney from Uganda Revenue Authority said Mutebi and other accused on July3, 2016 without authority interfered with motor vehicle number KBY 753Y which was carrying sodium neutral spirit from Kenya to South Sudan and diverted the truck to Kampala.

Aheebwa told court that the goods were never exported but instead used in Uganda without paying taxes to the tune of 150,646,027 to URA.

Under section 203(f) of the East African customs management Act of 2004 and (c) (ii) interference with customs gear contrary to section 205 of the same act, any person found guilty of the offence is liable to 3 years imprisonment or a fine of sh 30m.

"I have explained to the advocate to the best of my knowledge, the prosecution has as far as prudent provided all information and evidence that might play significant role in the event of a full trial and the advocates knows of no reason why the accused should not plead to this charge," a statement presented by head of legal Christa Namutebi states.

When the brief facts were read out to Mutebi he admitted having indeed diverted the goods without clearing the taxes.

Magistrate Lochomin accordingly ordered him to pay the tax liability of sh150m and the fine.

"The court finds that the accused's plea and admission are freely and voluntarily made with an understanding of the nature and consequences thereof, that any allegations as indicated in form are true. The court accepts accused's plea," Lochomin said.