Uganda Case Law

Nyabiryo & 1,117 Others v Uganda Revenue Authority

Nyabiryo & 1,117 Others v Uganda Revenue Authority (Civil Appeal 24 of 2022; Civil Application 7 of 2024) [2024] UGSC 32 (2 September 2024)

Court

Supreme Court of Uganda

Case number

Civil Appeal 24 of 2022 ; Civil Application 7 of 2024

Judge

Tuhaise, JSC, Elizabeth Musoke, JSC, Stephen Musota, JSC, Madrama , JSC, Catherine Bamugemereire, JSC

The Supreme Court held that retrenchment packages and terminal benefits paid to former employees following termination of employment constitute compensation for termination of employment within the meaning of Section 19(1)(d) of the Income Tax Act and are therefore taxable as employment income. The Court rejected the appellants' arguments that such payments were amelioration and not compensation, finding that the statutory language is broad and covers all compensation for termination, regardless of the circumstances or the entity making the payment. The Court affirmed the binding nature of it…

Source excerpt

• Taxation Of Terminal Benefits
• Income Tax Act Interpretation
• Compensation For Loss Of Employment
• Retrenchment Package Taxability
• Statutory Construction Tax Law

Yunus Social Business Foundation Uganda Limited v Uganda Revenue Authority (Taxation Application No. 79 of 2020)

Yunus Social Business Foundation Uganda Limited v Uganda Revenue Authority (Taxation Application No. 79 of 2020) [2022] UGTAT 11 (30 March 2022)

Court

Tax Appeals Tribunal (Uganda)

Case number

Taxation Application No. 79 of 2020

Judges

Katwe, Panel Member, Ali, Mugenyi, Chairperson

The Tribunal held that a social enterprise carrying on both charitable and business activities did not qualify as a charitable institution for tax exemption.

• Tax Exemption
• Charitable Status
• Income Tax Act Interpretation
• Social Enterprise
• Public Benefit Organizations
• Tax-exemption

Lugeya & Anor Vs Uganda Revenue Authority

Lugeya & Anor Vs Uganda Revenue Authority (Civil Appeal No. 115 of 2012) [2019] UGCA 53 (7 May 2019)

Court

Court of Appeal of Uganda

Case number

Civil Appeal No. 115 of 2012

The Court of Appeal held that PAYE on terminal benefits paid after privatisation was taxable under the Income Tax Act and dismissed the appeal.

• Pay As You Earn Taxation
• Terminal Benefits Taxability
• Employment Income Definition
• Privatisation And Tax
• Income Tax Act Interpretation
• Paye-taxation

Katureeba & Anor Vs Uganda Revenue Authority

Katureeba & Anor Vs Uganda Revenue Authority (Civil Appeal No.55 of 2012) [2018] UGCA 77 (11 October 2018)

Court

Court of Appeal of Uganda

Case number

Civil Appeal No.55 of 2012

The Court of Appeal, following the binding precedent of the Supreme Court in Uganda Revenue Authority v Siraje Hassan Kajura, held that terminal benefits paid to the appellants upon termination of employment by British American Tobacco (Uganda) Ltd, through the Privatisation Unit, constitute employment income under section 19(1) of the Income Tax Act. The court found that the appellants did not hold pensionable office under the Pensions Act, and the payments made were not pension or exempt lump sums from a resident retirement fund. The Privatisation Unit acted on behalf of the employer in the…

Source excerpt

• Taxation Of Terminal Benefits
• Income Tax Act Interpretation
• Exemption Of Pension
• Public Enterprise Divestiture
• Withholding Tax
• Employment Income Definition