Ambiance Distillers v Uganda Revenue Authority (Misc. Application No. 1192 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court dismissed an application for stay of execution of a Tax Appeals Tribunal decision pending appeal. The court held that the appeal was frivolous and had no likelihood of success because the Supreme Court had previously settled that payment of 30% of disputed tax is a procedural requirement giving taxpayers the right of audience before the Tax Appeals Tribunal. The applicant's challenge to this constitutional requirement was bound by Supreme Court precedent under Article 132(4) of the Constitution.
Outcome
Application for stay of execution dismissed with costs to the respondent
Facts
Ambiance Distillers filed TAT Application No. 21 of 2024 objecting to tax assessed by Uganda Revenue Authority. On 14 April 2025, the Tax Appeals Tribunal dismissed the application for failure to pay 30% of the disputed tax. The applicant filed a Notice of Appeal to the High Court on 16 April 2025. On 5 May 2025, URA issued a demand letter for UGX 295,635,310. The applicant then applied for stay of execution pending appeal, arguing the appeal had a high likelihood of success. URA opposed, contending that payment of 30% is a legal and constitutional requirement and that the appeal had no merit.
Issues
- Whether the application for stay of execution pending appeal should be granted.
- Whether the appeal has a likelihood of success given that the Supreme Court has settled the requirement to pay 30% of disputed tax.
Orders
- Application dismissed.
- Costs awarded to the respondent.
Rules and key headnotes
Legislation cited (8)
- Civil Procedure Act Cap. 282 s.98
- Judicature Act Cap. 16 s.33
- Civil Procedure Rules S.I 71-1 Order 43 rule 4
- Civil Procedure Rules S.I 71-1 Order 52 rules 1 and 3
- Civil Procedure Rules Order 15 rule 3
- Tax Appeals Tribunal Act s.15(1)
- Tax Appeals Tribunal Act s.27
- Constitution of the Republic of Uganda 1995 Article 132(4)
Cases cited (5)
- Lawrence Musiitwa Kyazze v Eunice Busingye (Supreme Court Civil Appeal No. 18 of 1990)
- Uganda Projects Implementation and Management Centre v Uganda Revenue Authority (Constitutional Appeal No. 2 of 2009)
- Kyambogo University v Prof. Isaiah Omolo Ndiege (Court of Appeal Misc. Civil Application No. 341 of 2013)
- Osman Kassim Ramathan v Century Bottling Company (Supreme Court Civil Application No. 34 of 2019)
- Commissioner General Uganda Revenue Authority v Airtel (U) Ltd (Civil Appeal No. 032 of 2020)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.