MTN UGANDA MAKES SH15B TAX CLAIM
Hearing of a sh15b claim against Uganda Revenue Authority (URA) by MTN failed to take off on Tuesday after URA’s lawyer asked for an adjournment.
MTN sued URA before the Tax Appeals Tribunal (TAT), saying the tax body wrongly assessed its tax obligations on Village Phones, resulting in a sh14.9b over-assessment between April 1998 and March 2004.
TAT chairman, Benjamin Kamugasha and members, Juventine Lica and Perry Namugowa, had been set to hear the case.
However, following URA’s lawyer, Hudson Musoke’s application, the hearing was postponed to April 12.
Through its lawyer, Oscar Kambona, MTN contends that it sells airtime to dealers at a price lower than the supply value, leaving a profit margin for dealers.
It says Value Added Tax (VAT) should be charged on the amount paid by the dealers not on the face value of airtime cards.
In its defence, URA says MTN’s position contravenes the VAT Act.
MTN, which has already paid 30% of the claim pending the Tribunal’s decision, wants URA’s computation declared unlawful and a refund of the sum already paid.