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Monday, August 18 2014

SK Mbugga slapped with a travel ban

Updated - Businessman  Sully K Mbuga, also Leila Kayondo's better half has been slapped with a travel ban. It's in relation to outstanding tax obligations amounting to shillings 219,155,869/- million which is the equivalent of US$ 84,290/-.

According to the letter dated 15 Aug 2014 addressed to the Director Citizenship and Immigration Control, SK Mbuga is not allowed to leave the country unless the above amount is fully settled. The amount continues to attract interest for as long as it remains outstanding.

A few days back, bailiffs went to Mbugga's residence to try and attach at least two of his Hummer vehicles to compel him clear the outstanding amount but they were denied access.

The bailiffs came back later after reinforcing, but the rides had been relocated to some un known destination. Uganda Revenue Authority is now pursuing a travel ban to the South Africa based businessman.

Mbuga says that he does not own any businesses in Uganda and wonders why URA is demanding such an amount from him. According to the Income Tax Act, any resident taxpayer has to declare each year of income as stipulated by Section 9 of the Income Tax Act. Additionally, a resident person is supposed to file returns for every year of income.

“If the income arose as a result of activities outside Uganda, such a person has to declare here and in the other country so that they can benefit from foreign tax credits,” Waiswa explained, adding that the foreign tax credits would reduce one’s tax liability.
Waiswa added, “He had 45 days to challenge the assessment but he did not.”

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