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An analysis by ENS Africa, Taxand South Africa
Ugandan High Court Justice Stephen Mubiru has recently ruled in favour of the Uganda Revenue Authority (URA) in a significant tax evasion case against Crane Autos. The court determined that a suspected tax evasion scheme justified delaying the dissolution of Crane Autos under the Insolvency Act.
Following a whistleblower report of a possible tax evasion scheme, The URA discovered that Crane Autos and four related companies, including East African Motor Supplies Limited, evaded taxes through complex transactions involving a Dubai branch. The court’s decision allows the URA to further investigate and recover unpaid taxes, setting a precedent for tackling tax evasion and transfer pricing issues in Uganda.
Phillip Karugaba, Rehema Nakirya Ssemyalo and Celia Becker from our South African member firm ENS Africa have analysed the key features and implications of this case in further detail here.
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