Brief Facts:
This ruling was in respect of the Applicant’s Application challenging income tax, withholding tax and VAT assessments totalling UGX 11,789,913,986. The Applicant sought to offset her tax liabilities without applying for a refund.
Issues for Determination:
- Whether the Applicant is liable to pay the tax outstanding
- What remedies are available?
Tax Appeals Tribunal Decision:
- Sections 113 of the Income Tax Act and Section 37(3) of the Tax Procedures Code Act (TPCA), respectively, allow the Commissioner to apply any excess tax to any other tax owed by the taxpayer without the need for a refund Application. Section 37 of the TPCA provides for the priority of WHT and VAT. The Commissioner can thus utilise the excess payment of UGX 1,564,345,320 by the Applicant for the fiscal year 2014 without the need for an Application for a refund and thus leave an outstanding tax liability of UGX 5,010,288,040.
- The period to amend a self-assessment return was enlarged to 3 years from 12 months. The Applicant is outside the prescribed time to take benefit of Section 23 of the Tax Procedures Code Act and rectify any error it made in amending the assessment.
The Tribunal maintained that the Applicant was liable to pay VAT amounting to UGX 413,288,174.
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