Tax

Our representative tax matters include advisory, transactional support, compliance reviews, audit support, objections, and litigation across a wide range of domestic and international tax issues.

 Tax Advisory and Transactional Tax Matters

•  Acted as tax advisor to a purchaser of Uganda’s largest hydropower portfolio. We conducted tax due diligence on the portfolio companies and provided a detailed legal and tax opinion on the tax implications of the proposed share purchase, including transaction exposure, compliance risks and structuring considerations.
• Advised an international conglomerate on the establishment of an energy, oil and gas project in Uganda. Our work involved advising on the applicable tax framework, tax structuring options, and the Ugandan tax implications of implementing the project.
• Advised on the tax structuring and implementation of a joint venture between a local milling company and an international nutrition group. The work included advising on the spin-off of assets into the joint venture entity and the tax implications of the restructuring. We are also representing the joint venture in a tax dispute concerning the roll-over relief treatment of the transaction.
• Advised on and completed the amalgamation of two leading beverage manufacturing companies in Uganda. The transaction involved the consolidation of two major businesses in the beverages sector, including tax structuring, implementation support, and advice on the tax consequences of the amalgamation.
• Advised a Kenyan investor on the corporate takeover of a major insurance company in Uganda. Our role included advising on the tax implications of the takeover structure, acquisition risks, and transaction implementation considerations.
• Advised a private equity investor on the tax implications and structuring of a private equity transaction in Uganda. The work involved advising on the Ugandan tax consequences of the investment structure, potential tax exposures, and efficient implementation of the transaction.
• Advised a telecommunications infrastructure company on the tax implications of acquiring another tower infrastructure company in Uganda. The mandate involved reviewing the acquisition structure and advising on the tax consequences arising from the transaction.
• Advised an oil marketing company on the tax implications arising from the acquisition of downstream petroleum assets in Uganda. The advice covered the tax treatment of the asset acquisition, transaction structuring issues, and potential tax exposure arising from the proposed acquisition.
• Advised an international manufacturing company on the tax implications of a tolling arrangement with a Ugandan manufacturing company. The work involved reviewing the tolling arrangement and advising on its domestic tax implications, including the treatment of contractual manufacturing arrangements.
• Acted as tax advisor to a major waste-to-energy power project in Uganda. We advised on the applicable tax framework and structuring considerations for the development of a USD 380 million waste-to-energy power project.
• Advised on and implemented the amalgamation of two group companies as part of a corporate restructuring. The mandate involved advising on the tax implications of the amalgamation and supporting implementation of the restructuring.
• Reviewed the transfer pricing policy of a food logistics company. We advised on the policy’s compliance with Uganda’s transfer pricing requirements and recommended amendments to align the policy with applicable regulatory standards.
• Reviewed an intercompany cost recovery and recharge agreement between related companies in the beverages sector. We assessed the agreement’s alignment with Uganda’s transfer pricing standards and advised on compliance risks.
• Reviewed transfer pricing documentation for a major retail operator. We advised on compliance with Ugandan transfer pricing requirements and identified areas requiring improvement.
• Reviewed the transfer pricing policy of an agribusiness/export company. We provided recommendations to ensure compliance with Uganda’s transfer pricing regime.
• Advised an East Africa cold chain investment fund on its transfer pricing policy. We advised on compliance with Uganda’s transfer pricing framework and related-party transaction requirements.
• Acted for a financial institution in a high-value transfer pricing dispute. The matter involved a UGX 111.4 billion transfer pricing assessment currently at objection stage, concerning complex intercompany arrangements and significant tax exposure.

Tax Litigation and Dispute Resolution Experience

•  Acted for our client in a high-value tax appeal before the High Court involving the calculation of ex-factory price for local excise duty purposes. The dispute concerns the proper method for determining the ex-factory price of commodities for local excise duty purposes. The matter also raises related income tax and VAT issues. The dispute is ongoing.
• Acted for our client in a Tax Appeals Tribunal dispute involving income tax and VAT assessments. We successfully negotiated a consent settlement under which the tax assessed was substantially reduced from approximately UGX 21.5 billion to approximately UGX 8 billion. The dispute was resolved and closed.
• Acted for our client in a High Court civil appeal involving income tax and VAT assessments. The dispute concerns the correctness of the assessments and the treatment of income tax and VAT issues arising from the client’s operations. The matter is ongoing.
• Acted for our client in a Tax Appeals Tribunal dispute concerning capital gains tax and the characterisation of proceeds from disposal of an asset. The core issue was whether the gain arising from the disposal was properly taxable as capital gains or as business income. We obtained a ruling in favour of the client and the dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute involving multiple tax heads, including income tax and VAT. The dispute includes issues relating to VAT input credit apportionment and the correct treatment of taxable and exempt supplies. The matter is ongoing.
• Acted for our client in a High Court civil appeal concerning employment income tax. The dispute relates to whether benefits provided to employees by a third party, out of that third party’s own resources, can be characterised as taxable employment income in the hands of the employees. The matter is ongoing.
• Acted for our client in a landmark Tax Appeals Tribunal dispute concerning the distinction between employees and independent consultants for tax purposes. The case addressed whether certain individuals should be treated as employees or independent contractors for purposes of employment tax obligations. We obtained a ruling in favour of the client and the dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute concerning customs valuation. The issue was whether the transaction value method was the appropriate valuation method to be applied. The Tribunal maintained the use of the transaction value method, and we obtained a ruling in favour of the client. The dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute involving a tax assessment of approximately UGX 1.25 billion. We successfully negotiated a consent settlement fully in favour of the client. The dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute involving a tax assessment of approximately UGX 539 million. We successfully negotiated a consent settlement in favour of the client. The dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute relating to VAT refunds. The dispute concerned the client’s entitlement to recover VAT refunds from the tax authority. We obtained a ruling in favour of the client and the dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute involving a tax assessment of approximately UGX 1.85 billion. We successfully negotiated a partial consent settlement in favour of the client. The dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute involving a tax assessment of approximately UGX 4.25 billion. We successfully negotiated a consent settlement partially in favour of the client. The dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute involving excise duty and VAT on local excise duty plastics. The dispute involved a high-value assessment of approximately UGX 17.5 billion. We successfully negotiated a consent settlement in favor of the client. The dispute is closed.
• Acted for our client in a Tax Appeals Tribunal dispute concerning the application of roll-over relief. The dispute related to whether the client was entitled to roll-over relief treatment in respect of a restructuring transaction. We obtained a ruling in favor of the client and the dispute is closed.
• Acting for two related corporate taxpayers in separate appeals before the Tax Appeals Tribunal challenging objection decisions on VAT apportionment. The disputes concern the appropriate treatment and apportionment of VAT input credits over different tax periods, with the matters involving substantial VAT assessments maintained by the tax authority. Our mandate includes reviewing the objection decisions, advising on risks and arguments, preparing and filing the appeals, handling Tribunal procedure, representing the clients at hearings and settlement discussions, and advising on possible outcomes.ch has experience in coal mining in South Africa through its interest in Canyon Coal.