Man remanded on charges of Sh289 million tax offense

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The director of Aframax Uganda Ltd has been accused of making a false statement to a tax officer of the Uganda Revenue Authority (URA) regarding taxes worth Sh289 million.

Justus Friday Mugisha was charged on May 20, 2024 with two counts of making false statements, contrary to Section 58(1)(a) of the Tax Procedures Code Act 2014. He was charged before the Senior Magistrate degree, Christopher Opit, at the Anti-Corruption Court based in Nakasero, Kampala.

The prosecution, led by Sam Kwerit, the supervisor in charge of the litigation, stated that Mugisha and others who were still at large submitted false monthly Value Added Tax (VAT) returns through the e-tax system to the Uganda Revenue Authority (URA). ) from November 2020 to June 2021 in Kasese district. He claimed to have purchased cement and construction materials from Grace Nakito, trading as GM Hardware, worth Sh1.2 billion, with a VAT implication of Sh228.5 million, which the state said was fake.

It is further alleged that Mugisha, during the months of July 2021 and August 2022 in Kasese District, as Managing Director of Aframax Uganda Ltd, knowingly submitted false monthly VAT returns to the URA. He claimed to have purchased multi-purpose cement from Grace Nakito, which he markets as GM Hardware, for a total of Sh169.4 million, with a VAT implication of Sh30.5 million. Mugisha denied the charges.

what the law says

A person convicted under Section 58(1)(a) of the Tax Procedures Code Act is liable to a fine of Sh960,000 or a term of imprisonment not exceeding two years’ imprisonment.

Magistrate Opit detained him in the Luzira prison until May 30, 2024, after he did not present guarantees to defend him.