January 26, 2022

High Court Dismisses Rental Income Tax Case Against URA

By Florence Namuganza.

The High Court in Kampala has dismissed with costs an application by the Open Forum Initiative to have rental income tax regulations nullified. The Forum sued the Attorney General and Uganda Revenue Authority (URA) on grounds that the Minister of Finance did not seek approval of parliament while effecting the regulations as required of statutory instruments under section 5 of the Income Tax Act.

URA then objected to the matter citing that the application was filed outside the three months permissible period from the date on which the regulation was gazetted on 14^th march,2020.

In their argument, the URA legal team said that the case ought to have been filed by 13^th June 2020 when the three-month window was due. The forum however, did not honour this requirement as the application was filed six months later on 7^th September, 2020.

In his ruling, the presiding judge, Justice Musa Ssekaana emphasized the need for strict adherence to legal timelines by applicants.

“As to the importance of adherence to time limits where court held that time limits set by statutes are matters of substantive law and not mere technicalities and must be strictly complied with” stated the Judge.

According to URA’s Assistant Commissioner for Litigation, George Okello, the Court decision meant that URA is given the green light to continue with the implementation of the Rental tax rates, as gazetted by the Ministry of Finance in March ,2020.

George Okello, URA’s Assistant Commissioner for Litigation

The Minister of Finance, Planning and Economic Development with the backing of Section 164 of the Income Tax Act made the Rental Rates Regulations in March, 2020. The regulations prescribed rates on rental properties along roads, lanes or streets specified in the Schedule.

URA was represented Barbra Nahone Kasibante and Ssali Alex Aliddeki.

http://www.judiciary.go.ug/

https://www.gou.go.ug/ministry/ministry-justice-and-constitutional-affairs

www.parliament.go.ug

Rytter Muzira

Rytter serves as the Team Lead for Public Relations and Communication in the Office of the Commissioner General at the Uganda Revenue Authority. Her responsibilities encompass overseeing media and stakeholder relations, brand marketing, and digital media strategies. Her role is integral to maintaining the organization’s reputation and establishing fruitful connections with key stakeholders.