Business 1 April 2026 Daily Monitor (Uganda)
MTN-URA Tax Clash: Procedural Lapse Puts Shs169 Billion Claim in Jeopardy
A Tax Appeals Tribunal ruling has halted URA's enforcement of a Shs169.9 billion tax demand on MTN Uganda due to the lack of a formal statutory assessment, particularly for mobile money findings. The decision underscores the critical role of legal processes in tax disputes, leaving the validity of the underlying liability unresolved. Source: https://www.monitor.co.ug/uganda/business/markets/mtn-ura-tax-row-a-process-failure-and-shs169b-at-stake--5409878
A high-stakes tax battle between MTN Uganda and the Uganda Revenue Authority (URA) has spotlighted flaws in audit procedures, with Shs169.9 billion hanging in the balance.
The dispute originated from a 2023 URA audit of MTN’s operations spanning late 2019 to 2022. Initial estimates pegged liabilities at Shs1.54 trillion, later slashed to Shs260 billion mainly over airtime sales issues like duplicated records and unreported revenue.
Tensions escalated with mobile money transaction reviews. URA flagged undeclared revenue, issuing notices starting at Shs870 billion, revised down to Shs566 billion through discussions. Yet, these findings lacked a formal tax assessment.
On December 30, 2025, URA demanded Shs169.9 billion, primarily from mobile money discrepancies, bypassing the required assessment step. MTN challenged this, arguing no legal basis existed without proper documentation.
URA insisted its letters and meetings sufficed, but also claimed MTN owed 30% upfront—around Shs50.9 billion—for tribunal access.
The Tax Appeals Tribunal ruled in MTN’s favor, finding no valid assessment issued. It blocked enforcement and waived the 30% payment, stressing procedural adherence without judging the tax’s merits.
This case highlights tensions between URA’s audit flexibility and statutory mandates, testing Uganda’s tax dispute framework.
Source: Daily Monitor (Uganda)