Court dismisses Basajjabalaba's sh142b tax evasion petition

COURT|FORGERY|TAX EVASION|CRIME

KAMPALA - The Constitutional Court has dismissed a petition in which city businessman Hassan Basajjabalaba sought court to declare that Uganda Revenue Authority (URA) froze his bank accounts and imposed taxes on sh142b compensation award illegally.

A panel of five Constitutional Court justices, headed by Justice Frederick Egonda-Ntende dismissed the petition, Tuesday (October 6, 2020), after Basajjabalaba opted to withdraw the same, saying the reliefs sought had been overtaken by events.

 "The petitioner hereby withdraws the petition since the reliefs sought has been overtaken by events. The petitioner does not intend to further prosecute the petition," states a withdrawal notice drawn by Alaka and Company Advocates.

This prompted the court to dismiss the petition on account of withdrawal with no order as to costs.

The other panelists were Justices Elizabeth Musoke, Cheborion Barishaki, Irene Mulyagonja, and Muzamiru Kibeedi.

Haba Group Uganda Limited of Basajjabalaba was represented by lawyer Joseph Kyazze while Brian Musota for Attorney General. Musota was holding briefs for George Karemera and Charity Nabaasa.

In July, the Supreme Court halted an order by the Constitutional Court ordering the trial of Basajjabalaba over tax evasion.

He is jointly implicated with his brother Muzamiru Basajjabalaba on several charges including conspiring to defeat tax laws, forgery of a judicial document and uttering a false document, before the Anti-Corruption Court.

In a petition filed in 2011, Basajjabalaba trading as Haba Group accused URA acts of imposing tax on sh142b compensation award and freezing his accounts illegally in contravention of the Constitution.

Haba Group stated that in 2009, the petitioner upon the directive of the President was awarded compensation, which was assessed by the Attorney General, who directed that he was not to pay taxes.

Basajjabalaba, however, stated that without hearing from him, URA on June 22, 2011 issued a third party notice freezing Haba Group bank accounts in Orient, Tropical and UBA.

Haba Group claimed that the acts were in consistent with the Constitution and contravened Article 26 of the Constitution.

It argued that it amounted to violation of the right to own property and deprivation of property.

It stated that the acts of freezing its accounts is unconstitutional. The company therefore wanted an injunction restraining URA officials from harassing its officials over tax emanating from the compensation claim.

Background

Court documents indicate that between January 2000 and December 2011, Basajjabalaba and his companies entered into contracts with KCC to manage, own and redevelop city markets but the contracts were reportedly entered without the advice of the Attorney General.

This prompted the traders to protest, leading to the cancellation of the contracts. This compelled Basajjabalaba to appeal to President Museveni, who referred the matter to the Attorney General.

Thereafter, an evaluation committee was set up to review the Haba Group's claim and it recommended compensation of sh54.7b, which Basajjabalaba refused.

However, the then Attorney General Kiddu Makubuya proposed a payment of compensation of sh142.7b and another about sh29.9b in respect of Nakawa Market.

This prompted Bbumba, as Finance minister to write to BoU requesting the central bank to help raise credit for Basajjabalaba Company, Haba Group.