Goldstar Insurance Ltd v Uganda Revenue Authority
Goldstar Insurance Ltd v Uganda Revenue Authority (Civil Appeal No. 26 of 2016) [2019] UGCommC 3 (20 February 2019)
The court held that contingency reserves, though statutorily required under the Insurance Act, do not constitute allowable deductions under the Income Tax Act because they are not expenditures or losses incurred in the production of income. The sums appropriated to contingency reserves remain under the control and ownership of the insurer and may be invested for the insurer's benefit. The mere statutory requirement to set aside such reserves does not transform them into deductible expenses for tax purposes. Furthermore, the Appellant failed to provide evidence that the tax assessment was time…
Source excerpt
- Insurance Taxation
- Allowable Deductions
- Contingency Reserves
- Corporation Tax Assessment