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Citation
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Judgment date
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| February 2019 |
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Application against customs seizure dismissed as time-barred and lacking locus; goods sold, origin undeterminable.
Customs law – seizure and forfeiture of goods – EACCMA provisions on seizure, claim and condemnation – statutory time limits (S.214, S.216, S.229/S.230) – locus/ownership of seized goods – sale of perishable seized goods – Limitation Act inapplicable to statutory customs disputes.
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13 February 2019 |
| December 2018 |
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Books suitable for public libraries or educational establishments are zero‑rated on supply and exempt from import VAT under the Florence Agreement.
Tax law — VAT on imports and supplies; interpretation of "suitable for use only in public libraries and educational establishments" (Third Schedule, VAT Act); interaction of VAT Act and EACCMA Fifth Schedule; Florence Agreement and Nairobi Protocol exempt educational, scientific and cultural materials from import duty and import VAT; dual‑purpose books may still qualify for zero‑rating.
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28 December 2018 |
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21 December 2018 |
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Applicant is an educational institution but not of public character; exemption rejected and Commissioner’s refusal appealable.
Tax — Income Tax Act s.2(bb) — meaning of “educational institution of public character” — parameters: ownership, funding, management, accessibility, beneficiaries — taxability of surplus and non‑educational income — Commissioner’s discretion to issue or refuse written rulings — refusals are taxation decisions appealable to Tax Appeals Tribunal.
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20 December 2018 |
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Applicant's trust not religious or public in character; hall rental income is taxable.
Tax law – Income Tax Act S.2(bb) – exemption for religious, charitable or educational institutions of public character; Trust deed and objects – determining institutional character; Public character – membership restrictions and accessibility; Distinct legal entities – lodges and charity separate from trustee; Taxation of rental income – hiring of premises taxable under s.5.
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20 December 2018 |
| October 2018 |
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Input VAT credit arose on importation and is not time‑barred; refund of Shs.14,933,056,019 ordered.
Tax — Value Added Tax — Input tax credit — s.28(1) and s.28(4)(a): entitlement arises on date goods are imported
Tax Procedures Code Act — commencement and application — Acts do not apply to rights that arose prior to commencement. s.23(3) TPCA — relates to additional assessments for discovered errors within 12 months, not a general time bar on input tax claims
Refunds — Commissioner’s verification/approval and statutory invoice rules (s.28(11),(12)) relevant to claim but do not extinguish substantive right
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30 October 2018 |
| August 2018 |
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Books suitable for public libraries or educational establishments are zero-rated and exempt from VAT at importation and supply.
Tax law – VAT – zero-rating of educational materials – interpretation of "suitable for use only in public libraries and educational establishments"; import exemption – EACCMA Fifth Schedule adopting Florence Agreement and Nairobi Protocol; dual-purpose books eligible for zero-rating; post-clearance audit assessment set aside.
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28 August 2018 |
| July 2018 |
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Reimbursed travel and upkeep paid to third parties are not management charges subject to withholding tax or VAT; application allowed with costs.
Tax law — Withholding tax — Definition of "gross amount" under s.83(2) and effect of s.87(1)(b) on allowable deductions for non-residents; reimbursable travel, accommodation and per diem paid to third parties are not management charges or taxable income of the non-resident
VAT — Reimbursable third-party supplies already subject to VAT; no statutory basis for withholding VAT; double taxation avoided. Statutory interpretation — ambiguity construed in favour of taxpayer
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23 July 2018 |
| April 2018 |
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Transaction value governs customs valuation; respondent wrongly applied fall‑back method; reassessment and refund ordered.
Customs valuation – EACCMA s.122 and Fourth Schedule – sequential application of valuation methods – transaction value primary – fall‑back method inapplicable where invoice value available – refund and interest for overpayment.
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10 April 2018 |
| March 2018 |
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Application to strike respondent’s bill of costs dismissed as res judicata; costs already determined by the Tribunal.
Tax Appeals – costs – entitlement to instruction fees by party represented by salaried in‑house lawyers – whether bill of costs disallowable under 6th Schedule. Res judicata – issue preclusion where costs were claimed and awarded in prior proceedings (section 7 Civil Procedure Act). Functus officio – Tribunal and Registrar’s powers regarding revisiting awards of costs; remedy by appeal to High Court (Tax Appeals Tribunal Act s.27). Civil procedure – obligation to raise all claims/defences in original suit (Order 2 Rule 1)
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9 March 2018 |
| August 2017 |
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Royalties related to imported trademarked goods were not a condition of sale and thus not includible in customs value.
Customs valuation – EACCMA Fourth Schedule para 9(1)(c) – Royalties and licence fees – Requirement that royalties both relate to imported goods and be paid as a condition of sale – Use of WCO Commentary 25.1 in interpretation – Quality control clauses do not necessarily establish a condition of sale.
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4 August 2017 |
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Tribunal found revenue authority unlawfully declined to consider/issue a private ruling and remitted the matter for proper exercise of discretion.
Tax law – Private rulings – s.161(1) Income Tax Act – meaning of "may"; discretionary power must be exercised and not abdicated. Administrative law – Exercise of statutory discretion – must be judicious, reasoned and not arbitrary. Tribunal jurisdiction – s.14 and s.19 Tax Appeals Tribunal Act – power to review decisions and remit to revenue authority
Locus – private ruling application should properly be by the taxpayer; attorneys acting on taxpayer's behalf must bring matters in taxpayer's name
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4 August 2017 |
| September 2016 |
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No VAT liability or S.65(3) penalty where tenancy expired and landlord received no consideration; anti-avoidance not proven.
VAT — Supply and consideration — Expiry of tenancy — No taxable supply where no consideration received — Time of supply (S.14) inapplicable to trespasser occupancy — Penal tax (S.65(3)) requires liability to pay tax — Anti-avoidance (S.75) not attributable to supplier absent evidence of participation.
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14 September 2016 |
| August 2016 |
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Tribunal orders penal interest on agreed VAT from consent order date where original due dates were not proved.
Tax law – Value Added Tax Act s.65 and Fifth Schedule – penal tax (interest) for unpaid VAT; effect of filing appeal on accrual of interest; evidentiary burden to prove VAT due dates; Tribunal’s remedial power to determine computation date where consent lacks dates.
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19 August 2016 |
| July 2016 |
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Contingency reserves required by the Insurance Act are not deductible as unexpired risks under the Income Tax Act.
Tax law – insurance reserves – distinction between contingency reserves and unexpired risks/unearned premiums; contingency reserves are retained earnings/contingency surplus, not deductible under Fourth Schedule Paragraphs 3(c) or 3(d); limitation of assessments – 2008 assessment not shown to be time-barred.
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25 July 2016 |
| December 2011 |
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Applicant failed to prove principal tax was nil or properly amend returns; interest under s.65(3) upheld and application dismissed.
Tax law – VAT on imported services – reverse charge and self-billed invoices – amendment of returns (s.32) – penal tax for late payment (s.65(3)) – burden of proof before Tax Appeals Tribunal – challenge to objection decision and private rulings.
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16 December 2011 |
| November 2011 |
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Disposal of PSA/J OA rights was taxable as an interest in immovable property or Uganda‑sourced business income; assessment upheld.
Tax — Sale of PSA/JOA participating interest — whether disposal constitutes an interest in immovable property under domestic law and the Uganda–Mauritius DTAA (Article 6) — held taxable. Tax procedure — Commissioner’s discretion to assess under S.92(8)/S.95(4) where no return filed — assessment upheld
Deductions — exploration costs recoverable under PSA excluded from deduction (S.22(2)(c)); signature bonuses allowable in cost base (Part VI). Onus of proof — taxpayer must prove assessment excessive (S.102). Currency/formal defects — calculation in US$ and citation errors not fatal (S.98(3))
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23 November 2011 |
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A settlement payment tied to the sale of Ugandan petroleum interests was taxable as income attributable to activities in Uganda; assessment upheld.
Taxation – Sale of petroleum participating interest – Contingent/settlement payment as part of consideration – taxable as business profit attributable to activities in Uganda (S.79(s)). Tax procedure – Commissioner’s discretion to assess under S.95 read with S.92(8) where no return filed and taxpayer about to cease activity. Formal defects – Wrong statutory citation and assessment in foreign currency do not void assessment (S.98(3)); S.57’s currency requirement not fatal. International law – Double Taxation Agreement considered alongside domestic source rules; substance over form in tax characterization
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23 November 2011 |
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Sale of petroleum contract interests taxable as disposal of immovable‑property interest; URA assessment upheld.
Taxation — Petroleum PSAs/JOA — Sale of participating interest — bundle of rights (cost recovery, profit oil, usufruct/accessory rights) — interest in immovable property; source rules S.79(g)/S.79(s); Double Taxation Agreement; Commissioner’s discretion to assess under S.92(8)/S.95(4); recoverable exploration costs excluded by S.22(2)(c); assessment upheld.
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23 November 2011 |
| July 2011 |
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Tribunal refused to stay tax appeals for arbitration: tax assessments arise from statutory powers, not contractual arbitration.
Arbitration referral – applicability of section 5 Arbitration and Conciliation Act – whether respondent is party to arbitration agreement; Tax law – statutory assessments under Income Tax Act cannot be displaced by contractual arbitration clauses; Administrative/tribunal jurisdiction – Tax Appeals Tribunal’s constitutional/statutory mandate to resolve tax disputes expeditiously; Procedural law – limits on staying tribunal proceedings under procedural rules.
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25 July 2011 |
| May 2011 |
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Closed fuel cards are incidental to VAT-exempt fuel supply and thus not subject to VAT; assessment set aside.
VAT – mixed supplies (s.12) – incidental/ancillary services – fuel cards – closed cards incidental to exempt petroleum supply – open cards distinct – assessment set aside.
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24 May 2011 |
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Contractual gratuity from a non‑pensionable commission appointment is taxable; employer‑provided vehicle benefits are taxable with refund for overcharge.
Tax law – employment income – gratuity – distinction between pensionable public service under the Pensions Act and contractual gratuity under Income Tax Act – contractual gratuity taxable. Tax law – valuation of benefits – use of employer-provided motor vehicle is a taxable benefit; over-assessment refundable with interest
Interpretation – section 19(4) partial exemption requires ten or more years in same employment
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11 May 2011 |
| April 2011 |
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Applicant’s taxi-park management services are incidental to passenger transport and therefore exempt from VAT.
VAT — Exempt supplies — Passenger transport services (Second Schedule 1(n) and 2(c)) — Ancillary/incidental services — Taxi-park management as a facility integral to transport — Economic reality test; corporate form irrelevant to VAT characterisation.
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21 April 2011 |
| February 2011 |
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Tribunal upheld respondent’s imposition of penal VAT under sections 65(3) and 65(6), dismissing the applicant’s challenge.
VAT – assessments and penal tax – s32(1)(b) assessment; due dates under ss31, 34; penal tax under s65(3) for unpaid tax; penal tax under s65(6) for knowingly/recklessly false or misleading statements; defects in notice not fatal – s33(2); burden of proof on taxpayer – TAT Act s18; no criminal conviction required before civil penalty; remission power – s67.
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14 February 2011 |
| May 2010 |
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Whether the applicant’s agency and brokerage services incidental to international transport are zero-rated for VAT purposes.
VAT — zero-rating of international transport — whether agency/brokerage services incidental to international transport qualify for zero-rating (Third Schedule) — interpretation of S.11, S.13 and S.16(3) — agent liability and supply attribution — refund of deposit and costs.
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12 May 2010 |
| March 2010 |
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Closed fuel cards and their management services are incidental to and therefore exempt as part of the supply of fuel.
VAT — Mixed supplies (s.12) — Incidental/ancillary services — Whether convenience/management services tied to closed fuel cards are part of exempt supply of petroleum — Single supply analysis — Distinction between closed and open fuel cards.
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18 March 2010 |
| January 2010 |
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Tribunal upheld seizure for suspected false customs documents and found the higher commercial invoice determinative of customs value.
Customs law – seizure under EACCMA s.203/213 for suspected false declarations; determination of customs value – transaction value vs. conflicting invoices; burden of proof on applicant in tax review; obligations and time limits for seizure, claim and prosecution under s.214–216; admissibility and weight of confidential intelligence in customs valuation inquiries.
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21 January 2010 |
| July 2009 |
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Imported rice is exempt only if unprocessed under the 5% value‑add test; practice notes do not bind taxpayers.
Tax — VAT: distinction between exempt, zero-rated and standard-rated supplies; "unprocessed" defined by paragraph 3 (<=5% value-add) of Second Schedule; imported rice exempt only if unprocessed; zero-rating limited to goods grown/milled/produced in Uganda; Commissioner-General practice notes (s.79) bind Commissioner but not taxpayers and cannot amend statute or be applied retrospectively where incorrect; burden of proof on taxpayer to show processing exceeds 5%; SAM requires prior written authorisation
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1 July 2009 |
| July 2007 |
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Imported rice is exempt only if unprocessed (≤5% value added); practice notes do not bind taxpayers or operate retrospectively.
VAT — interpretation of Second and Third Schedules; definition of "unprocessed" includes low value-added activities not exceeding 5% value-add; practice notes under s.79 bind Commissioner-General but not taxpayers; retrospective effect of administrative practice notes; burden of proof on taxpayer in Tribunal proceedings; apportionment under s.28(7); SAM requires prior written authorization.
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10 July 2007 |
| June 2007 |
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Applicant's financial services in credit sales administration exempt from VAT, respondent's assessment quashed.
Tax Law – VAT Act – Definition and exemption of financial services – Services rendered to government agencies as part of credit sale administration – Tax implications.
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21 June 2007 |
| May 2007 |
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The input/output ratio method used by URA for VAT assessment lacked legal support, quashing the tax liability.
Tax law - VAT assessment - input/output ratio method - statutory requirements for VAT assessments - legal validity of assessment methods.
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18 May 2007 |
