Uganda Case Law

Standard Chartered Bank and Others v Commissioner General Uganda Revenue Authority (HCT - 00 - CC - CS - 63 - 2011)

Standard Chartered Bank and Others v Commissioner General Uganda Revenue Authority (HCT - 00 - CC - CS - 63 - 2011) [2011] UGCommC 2004 (21 November 2011)

Court

Commercial Court of Uganda

Case number

HCT - 00 - CC - CS - 63 - 2011

Judge

Kiryabwire, J

The court held that the issuance of bonus shares by the plaintiff banks does not amount to a distribution of accumulated profits within the meaning of Section 2(W)(V) of the Income Tax Act. The Act does not expressly include bonus shares in its definition of dividend, and the conversion of reserves into share capital through bonus shares does not result in a transfer of assets or profits to shareholders. The court found persuasive the reasoning in Commissioner of Income Tax, Bihar v Dalmia Investments, which distinguished bonus shares from dividends for tax purposes. The court further rejecte…

Source excerpt

• Income Tax
• Withholding Tax
• Bonus Shares
• Company Dividends
• Capitalization Of Reserves

Diamonds Limited v Commissioner of Income Tax

Diamonds Limited v Commissioner of Income Tax (Civil Appeal No. 73 of 1954) [1955] EACA 292 (1 January 1955)

Court

East African Court of Appeal

Case number

Civil Appeal No. 73 of 1954

Judge

Briggs, JA, Nihill P, Worley VP

The Court of Appeal held that the Commissioner had applied the wrong test under section 21 of the Tanganyika income tax ordinance and remitted the matter for reconsideration.

• Income Tax Assessment
• Undistributed Profits
• Company Dividends
• Capital Losses
• Commissioner Discretion
• Income-tax