New Vision Printing & Publishing Corporation v Uganda Revenue Authority
New Vision Printing & Publishing Corporation v Uganda Revenue Authority (Civil Appeal No. 78 of 1999) [2000] UGHC 24 (21 March 2000)
The court held that under the Income Tax Decree 1974, as amended, rental installments in a finance lease with an option to purchase are not deductible expenditures for tax purposes. The principal component of such payments is considered capital expenditure, which is expressly excluded from allowable deductions by section 15(1)(b). Only the interest component is deductible, as it is specifically provided for in section 14(3)(a). The court rejected the appellant's reliance on international accounting standards and foreign case law, emphasizing that local statutory provisions govern the treatmen…
Source excerpt
- Deductibility Of Lease Payments
- Finance Leases
- Income Tax Computation
- Capital Expenditure
- Allowable Deductions