The Supreme Court has ruled that Airtel Uganda is not entitled to a refund from URA because it was lawfully collected.
The decision follows an appeal to the Supreme Court, where URA was dissatisfied with the Court of Appeal’s decision that ordered a refund of 1.5 billion shillings to the telecom Company, which had been collected as unpaid VAT and penal tax.
The Supreme Court ruled that the Court of Appeal erred in ordering that URA refunds the 1.5 Billion Shillings paid by Airtel, which amount had accrued during the pendency of the tax objection proceedings and conclusion of the Case filed in Court.
It also faulted the Court of Appeal’s finding that the accrual of penal tax is suspended during the pendency of tax objection proceedings, as the finding is not supported by the relevant tax laws.
The Supreme Court therefore ordered that the decision of the Court of Appeal be set aside and subsequently reinstated the decision of the High Court dismissing Airtel’s suit in the High Court.
URA was also granted costs in the Supreme Court and the courts below.
In celebration of this achievement, a ceremony was held on the 17t floor last Friday.
Correspondence by Bakanansa Hilda Walaga, Ndagire Patricia, Nakku Mwajumah Mubiru, and Nahumuza Derrick
