Tax Appeals Tribunal Uganda has ruled in favour of MTN Uganda in a tax dispute with Uganda Revenue Authority, halting the collection of UGX 169.9 billion in contested taxes.
In its decision, the Tribunal waived the requirement for MTN Uganda to make a 30% prepayment before proceeding with the appeal. It found that URA did not follow due process, noting that an objection decision had been issued without a prior valid tax assessment and formal objection.
The Tribunal held that the disputed tax liability stemmed from an invalid process, and as such, the 30% prepayment rule could not be applied. Consequently, it issued an injunction restraining URA from enforcing the collection of both the full amount and any portion of it from MTN Uganda.
The ruling represents a significant development in the dispute, emphasizing the importance of adherence to proper tax procedures in enforcement actions.
