Wakilii

Finn Church Aid Uganda v Uganda Revenue Authority [2025] UGTAT 17

Tribunal · 2025 Matter Remitted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application challenging stamp duty assessment on employment and supplier contracts
Decision
Assessment set aside and matter remitted to URA for re-computation based on physical verification of agreements

Observed later treatment

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Holding

The Tribunal held that employment and supplier contracts executed in Uganda are chargeable with stamp duty at UGX 10,000 per agreement under the Stamp Duty Act. The duty is payable by the person who draws or makes the agreement as specified in Schedule 3. However, the Respondent must physically verify the actual agreements underlying PAYE and withholding tax returns to ensure accuracy of the assessment. The assessment of Shs. 53,800,000 was set aside and the matter remitted for re-computation based on actual agreements.

Outcome

Assessment set aside and matter remitted to URA for re-computation based on physical verification of agreements

Facts

Finn Church Aid Uganda, an international NGO registered in 2014, works with refugees in Uganda as an implementing agent for UNHCR and partner with the Office of the Prime Minister. On 27 September 2024, URA assessed the Applicant Shs. 53,800,000 for stamp duty on employment and supplier agreements executed between 2014-2024. The Applicant objected on 5 October 2024, arguing they did not have the assessed number of contracts and that the Stamp Duty Act does not specify which party bears the cost. URA maintained the assessment on 4 November 2024. The Applicant contended the assessment was based solely on PAYE and withholding tax returns without engagement or verification of actual agreements. URA only requested the physical agreements on 25 October 2024, after issuing the assessment, and did not grant the Applicant's request for time to compile documents spanning ten years.

Issues

  1. Whether the Applicant is liable to pay the stamp duty as assessed by the Respondent.
  2. Whether the Stamp Duty Act specifies which party bears the cost of stamp duty on employment and supplier contracts.
  3. Whether the Respondent's assessment based on PAYE and withholding tax returns without physical verification of agreements was valid.

Orders

  • The assessment of Shs. 53,800,000 is set aside.
  • The matter is remitted to the Respondent to re-compute the duty based on the actual agreements underlying the PAYE and withholding tax returns that were reviewed by the Respondent.
  • The above exercise should be completed not later than 15 September 2025.
  • Each party should bear their own costs.

Rules and key headnotes

Stamp Duty — Chargeable Instruments — Employment and Supplier Contracts
Written employment and supplier contracts executed in Uganda fall within the definition of 'instrument' under the Stamp Duty Act as documents by which rights or liabilities are created, and are chargeable with stamp duty at UGX 10,000 per agreement under Schedule 2 Item 5, regardless of the parties' non-profit status or the subject matter of the agreement.
Stamp Duty — Nature of Tax — Attachment to Instrument
Stamp duty attaches to the instrument itself upon execution, not to the transaction or parties' intent, and is a tax on documents rather than on income or profitability of the parties.
Stamp Duty — Liability for Payment — Person Drawing Agreement
Under Schedule 3 paragraph 1 of the Stamp Duty Act, the expense of providing the proper stamp is borne by the person who draws or makes the agreement, unless the agreement itself specifies otherwise.
Tax Assessment — Burden of Proof — Taxpayer's Obligation
Under section 28 of the Tax Appeals Tribunal Act, the burden is on the taxpayer to prove that a tax assessment is incorrect.
Stamp Duty Assessment — Verification Requirement — Physical Documents
Where stamp duty is chargeable on documents rather than income or transaction value, the revenue authority must physically verify the actual agreements to ensure completeness and correctness of the assessment; PAYE and withholding tax returns alone, while indicative of employment and supplier arrangements, do not specify the number or identity of dutiable agreements.

Legislation cited (9)

Cases cited (4)

  • Uganda Revenue Authority v Siraje Hassan Kajura (Supreme Court Civil Appeal No. 9 of 2015)
  • Infectious Diseases Institute v Uganda Revenue Authority (Civil Appeal No. 6 of 2022)
  • Farid Meghani v Uganda Revenue Authority (Civil Appeal No. 6 of 2021)
  • Stanbic Bank Uganda v Uganda Revenue Authority (High Court Civil Suit No. 92 of 2007)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Finn Church Aid Uganda v Uganda Revenue Authority 2025 UGTAT 17 (18 August 2025)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.