Uganda Revenue Authority (URA) lawyers led by Gloria Turyomugisha have suffered a set back in their fight to defend collecting taxes through the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) after the Tax Appeals Tribunal allowed a concerned citizen to proceed with his complaint against the tax body.
In their brief ruling, three members of the tribunal led by their chairperson Crystal Kabajwera declared that any concerned Ugandans even if he/she is not a lawyer is allowed to petition their tribunal challenging any decision taken by URA as a means of collecting taxes in the country.
The ruling resulted from an application filed by URA lawyers challenging maverick lawyer Male Mabirizi’s complaint against EFRIS claiming that the tribunal only have powers to hear complaints resulting from disagreements between a person and URA in the process of summing up the amount of money to be paid in taxes.
The lawyers argued that Mabirizi should file his complaint in the Commercial Division of the High Court for review or file a Constitutional petition in the Constitutional Court but not in the tribunal.
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URA lawyers further questioned Mabirizi’s locus to file a complaint against URA noting that in their records, he is not a taxpayer and has no business which is being affected by EFRIS.
But Mabirizi insisted that as a concerned citizen, the country’s constitution allows him to challenge EFRIS before the tribunal which was allowed.
The lawyers also wondered that since Mabirizi is a lawyer, why didn’t he approach the affected persons and file an affidavit and give evidence on record as a legal counsel instead of himself filing a complaint which is not supported.
However, their argument was overruled.
In his testimony, Mabirizi told the tribunal that the mandatory usage and application of EFRIS to all traders and business people is unlawful and contrary to the wording and spirit of the Value added tax Act and the Income Tax Act.
“I know that URA has made EFRIS compulsory for every trader and in the bid to realise penalties, I have seen URA staff making road blocks on several Highways where vehicles are stopped and required to show EFRIS receipt such as Matugga along Bombo road. I have seen those without these receipts arrested and their goods with vehicles confiscated,” Mabirizi testified during the cross examination.
He explained that making EFRIS mandatory to all traders and businesses creates mandatory VAT Registration for persons who are not qualified to register for VAT which makes all traders and business people withholding agents contrary to Income Tax Act.
He claimed that trader’s rights are violated by URA when their agents expose them to the cost of buying an EFRIS machine at Shs100,000 from URA as a monopoly supplier which is contrary to principles of taxation and exposes the entire public to arrest since URA enforcement officers require goods carriers to carry with EFRIS receipt.
The matter was adjourned to March 24, 2025 when other witnesses will testify before the tribunal.
