Constitutional Court on Tuesday dismissed a petition which was filed by HABA Group, a company belonging to city businessman Hassan Basajjabalaba, which challenged taxation of the Shs 169 billion it received as compensation from government; as well as freezing its bank accounts
In 2009 Government awarded Haba Group Uganda Limited 169 billion shillings as a compensation for cancellation of its contract to manage and develop four markets that included Shauriyako, Nakivubo, Owino, Nakawa as well as the Constitutional Square.
The company told court that this payment was assessed by the Government on conditions that they didn’t have to pay taxes.
However URA asked them to pay taxes on the said money and having failed to get the taxes, in June 2011 the tax body issued a third party notice freezing the company Bank Accounts in UBA, Tropical Bank and Orient Bank.
HABA through its lawyers had asked court to issue a permanent injunction restraining Uganda Revenue Authority (URA) on any person from freezing its accounts or harassing its officials over taxes resulting from the said compensation.
A panel of five justices however, dismissed with no costs this petition after lawyers from both parties consented on the dismissal.
Counsel Joseph Kyazze holding brief for Caleb Alaka asked for the dismissal on grounds that the matter had already been over taken by events.
Musota Brian the State Attorney from the Attorney General’s chambers didn’t object to the request.