Luwaluwa Investments Limited v Uganda Revenue Authority (Application 39 of 2021)
Luwaluwa Investments Limited v Uganda Revenue Authority (Application 39 of 2021) [2022] UGTAT 30 (22 September 2022)
The majority of the Tribunal held that Section 118B(2) of the Income Tax Act is clear and unambiguous in requiring a resident person who purchases a business asset to withhold tax at the prescribed rate, regardless of whether the seller is the owner or a financial institution acting as a mortgagee. The Tribunal found that the property in question, Afrique Suites, qualified as a business asset because it was used as a hotel, and the applicant, as purchaser, was obligated to withhold tax. The Tribunal rejected the applicant's arguments regarding statutory exemptions and ambiguity, holding that…
Source excerpt
- Withholding Tax
- Mortgaged Property Sale
- Business Asset Definition
- Statutory Interpretation
- Tax Exemptions