Lugeya Samuel and Another v Uganda Revenue Authority
Lugeya Samuel and Another v Uganda Revenue Authority (Civil Appeal No 115 of 2012) [2019] UGCA 2122 (7 May 2019)
The Court of Appeal, bound by the Supreme Court's decision in Uganda Revenue Authority v Siraje Hassan Kajura, held that terminal benefits paid to employees upon termination, including retrenchment packages, constitute employment income under section 19 of the Income Tax Act and are therefore subject to PAYE taxation. The Privatisation Unit's role in payment did not alter the taxability, as the payments originated from employment and the withholding mechanism is not determinative of the underlying tax liability. The appeal was dismissed as the deductions were lawful, and the previous contrary…
Source excerpt
- Pay As You Earn Taxation
- Terminal Benefits Taxability
- Employment Income Definition
- Privatisation And Employee Rights