Wakilii

The Elma Philanthropies (E.A) Ltd v URA (Miscellaneous Application No. 22 of 2021)

High Court · [2022] UGCOMMC 10 · 2022 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution of Tax Appeals Tribunal ruling pending appeal to High Court
Decision
Stay of execution granted conditionally upon deposit of 50% of the decretal sum within 60 days

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court granted a conditional stay of execution of a Tax Appeals Tribunal ruling pending appeal. The applicant satisfied the requirement of proving substantial loss and imminent threat of execution, but failed to demonstrate absence of unreasonable delay and did not provide adequate security for due performance. The court ordered the applicant to deposit 50% of the decretal sum within 60 days as a condition for the stay, balancing the applicant's right to appeal against the respondent's statutory mandate to collect taxes.

Outcome

Stay of execution granted conditionally upon deposit of 50% of the decretal sum within 60 days

Facts

The applicant, an NGO conducting due diligence on NGOs and charity organizations for funding eligibility, was dissatisfied with the Tax Appeals Tribunal's ruling in TAT No. 46 of 2019 and lodged a notice of appeal. The respondent issued an agency notice to collect tax totaling UGX 843,548,766. The applicant had already paid 30% of the disputed tax (UGX 253,064,629) as required under Section 15 of the Tax Appeals Tribunal Act. The applicant sought a stay of execution pending determination of the appeal, arguing that execution would cripple its operations and render the appeal nugatory. The ruling was delivered on 26 October 2020, the notice of appeal was filed on 25 November 2020, and the stay application was filed on 11 January 2021 after the agency notice was issued on 10 January 2021.

Issues

  1. Whether the applicant has satisfied the conditions for the grant of stay of execution pending appeal.

Orders

  • Application for stay of execution granted conditionally.
  • Applicant to deposit UGX 421,774,383 (50% of the decretal sum) in court within 60 days.
  • Conditional order to expire if deposit not made within the stipulated period.
  • No order as to costs.

Rules and key headnotes

Civil Procedure — Stay of Execution — Conditions for Grant — Substantial Loss
To establish substantial loss for purposes of a stay of execution, it is not sufficient to merely repeat the words of the code; the applicant must specify the kind of loss, give details, and satisfy the court's conscience that such loss will really ensue. Substantial loss must mean something in addition to and different from the ordinary loss which every judgment debtor necessarily suffers when deprived of property in consequence of losing a case.
Civil Procedure — Stay of Execution — Unreasonable Delay — Timing of Application
An intended appellant who has filed a notice of appeal should be able to apply for a stay of execution as soon as possible and not have to wait until lodging the appeal. However, vigilance is required, and delay between the lower court's decision and filing the stay application may constitute unreasonable delay even where the respondent has not yet extracted a decree.
Tax Law — Tax Appeals Tribunal Act — Security for Due Performance — Distinction from Deposit Pending Objection
The 30% deposit of disputed tax required under Section 15 of the Tax Appeals Tribunal Act pending determination of an objection to an assessment does not constitute security for due performance of a decree as required in an application for stay of execution pending appeal. Security for due performance can only be secured by provision of security for costs.
Civil Procedure — Stay of Execution — Conditional Grant — Balancing Rights and Statutory Mandates
Where an applicant satisfies some but not all conditions for stay of execution, the court may grant a conditional stay requiring deposit of a portion of the decretal sum. Courts should be slow in curtailing a party's genuine right to appeal, while balancing this against the successful party's right to execute and, in the case of a revenue authority, its statutory mandate to collect taxes.

Legislation cited (9)

Cases cited (12)

  • Lawrence Musiitwa Kyazze v Eunice Busingye (SC Civil Application No. 18 of 1990)
  • Theodore Ssekikubo & Others v Attorney General & Another (Constitutional Application No. 06 of 2013)
  • Tanzania Cotton Marketing Board v Coqecot Cotton Co. SA (1995-1998) 1 EA 312
  • Bansidhav Vs Pribku Dayal AIR 41 1954
  • Pan African Insurance Co. (U) Ltd v International Air Transport Association (Miscellaneous Application No. 086 of 2006)
  • Dr. Ahmed Mohammed Kisuule (supra)
  • China Communications Construction Co. Ltd v Justus Kyabahwa (Miscellaneous Application No. 692 of 2019)
  • Ujaqar Singh v Runda Coffee Estates Ltd [1966] EA 263
  • Amon Bazira v Maurice Pater Kagimu K (Miscellaneous Application No. 1138 of 2016)
  • National Enterprises Corporation v Mukisa Foods Ltd (Miscellaneous Application No. 7 of 1998)
  • Gashumba Maniraquha v Sam Nkudiye (SC Civil Appeal No. 24 of 2015)
  • GAPCO Uganda Ltd v Kaweesa & Another (Miscellaneous Application No. 259 of 2013)

Full judgment

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

The Elma Philanthropies (E.A) Ltd v URA (Miscellaneous Application No. 22 of 2021) [2022] UGCommC 10 (24 January 2022)
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.