AIRTEL Uganda Limited v Uganda Revenue Authority (TAT Application No 10 of 2019)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Tax Appeals Tribunal held that issues of time limits are matters of substantive law that can be raised at any time during a trial, and that the Tribunal has discretion under s.16(4) of the Tax Appeals Tribunal Act to allow additional grounds beyond those in the objection notice. The Tribunal allowed the application to add a ground on time limits, finding that raising it at the beginning of the trial gave the respondent ample time to respond and did not prejudice the respondent, while avoiding multiplicity of suits.
Outcome
Application to add additional ground allowed with costs to the applicant
Facts
Airtel Uganda Limited acquired Warid Telecom on 18 February 2014. In 2018, Uganda Revenue Authority audited the applicant for the period July 2007 to June 2014, disallowing input tax credits, adjusting withholding tax, and issuing an additional assessment of UGX 208,817,971. The applicant appealed to the Tax Appeals Tribunal. At the scheduling conference, the applicant applied to add an additional ground for determination concerning whether the assessments were time-barred under s.23(2)(b) of the Tax Procedure Code Act, which requires additional assessments to be made within three years. The respondent objected, arguing that s.16(4) of the Tax Appeals Tribunal Act limits appeals to grounds stated in the objection notice and that the new ground would prejudice the respondent and prolong litigation.
Issues
- Whether the Tribunal should exercise its discretion to allow the applicant to add an additional ground concerning time limits for issuing tax assessments.
Orders
- Application allowed.
- Costs awarded to the applicant.
Rules and key headnotes
Legislation cited (7)
- Tax Appeals Tribunal Act s.16(4)
- Constitution of Uganda Article 152
- Tax Procedure Code Act s.23(2)(b)
- Tax Procedure Code Act s.32(2)(a)
- Tax Procedure Code Act s.32(2)(b)
- Tax Procedure Code Act s.32(2)(c)
- Civil Procedure Rules Order 6 Rule 28
Cases cited (9)
- Kasese Cobalt Company Limited v Uganda Revenue Authority (TAT Application No. 28 of 2018)
- Makula International Limited v His Eminence Cardinal Emmanuel Nsubuga (Court of Appeal Civil Application No. 4 of 1981)
- Cable Corporation v Commissioner General Uganda Revenue Authority (Civil Appeal No. 1 of 2011)
- Konde Mathias Zimula v Byarugaba Moses and Grace Nampijja (High Court Civil Suit No. 66 of 2007)
- National Social Security Fund and another v Alcon International Ltd (Supreme Court Civil Suit No. 15 of 2009)
- Shah v Mbogo and another [1967] EA 116
- Uganda Revenue Authority v Consolidated Properties (Civil Appeal No. 31 of 2000)
- Uganda Revenue Authority v Toro Mityana Tea Company Limited (High Court Civil Suit No. 4 of 2006)
- Kanda v Government of Malaya [1962] AC 322
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.