Karim Paid Sh55m To Rwakakooko
DIGGING UP DATA: Revenue security chiefs Capt Mugalu and Mukindo
testify yesterday
--Data seized in office raid, URA probe told
By Milton Olupot
A 2.4b revenue loss to the State is bad but it is worse when the
man hired by the Government to collect taxes is said to have
pocketed sh55m bribe to frustrate the effort.
The Uganda Revenue Authority (URA) probe commission was
yesterday shocked to learn that former URA chief Elly Rwakakooko
took sh55m from city tycoon Karim Hirji under unclear
circumstances.
Lead commissioner Justice Julia Ssebutinde heard that documents
seized by the Special Revenue Protection Services (SRPS)
indicated that Rwakakooko was paid by cheque on June 3, 2000.
The commission was investigating a case in which Karim, who owns
a string of hotels, is said to have evaded sh2.4b tax from 1996
to 2001.
The SRPS raided the hotels and their go-down in Ntinda and
seized evidence, including cash analysis books, two different
sets of accounts books for each hotel, one doctored for tax
purposes and another official one.
However, Karim petitioned the President, saying the tax
assessment was inaccurate and proposed to pay sh755,180,817.
Karim said commissions to clients, credit card payments and
incentives to clients were not considered when assessing the
taxes.
A letter from Fox Odoi, the president�s legal adviser, to Karim
said the President�s Office had instructed URA chief Aslund
Annebrit to consider his (Karim�s) objections. URA has now asked
Karim to pay the sh755,180,817 within a year in three
installments.
Odoi�s letter, dated August 23, 2002, said the matter had been
referred to Annebrit and Karim was asked to discuss it with her.
Ssebutinde, who was angered by the revelations, criticised the
President�s Office for alleged preferential treatment and said
the tax law must be followed.
�Sometimes one
feels like throwing in the towel on the written
parts of the law and follow what is practised. There is no law
constituting the Office of the President as an appellate office.
�The CG (Commissioner General) must start from where she
stopped: collect the sh2.4b. Either we throw in the towel and go
by the practice or we follow the written law without
preferential treatment.
�You better advise the CG appropriately. The whole damn batch of
you are incompetent. How can you allow this Fox Odoi to advise
you? You have the law in your hands. There is no credible reason
why you should not collect the sh2.4b. I do not see anyone
sacking you for doing right,� she said. She wondered why it took
the SRPS to discover the fraud and not the URA audit department.
SRPS discovered that Karim under-declared Value Added Tax (VAT)
and Pay As You Earn (PAYE) for the Grand Imperial, Equatoria and
Botanical Beach hotels from sh44b to sh22.1b.
The witnesses yesterday included Adrian Kyamugina, acting
commissioner tax investigation and audit, Naja Twaha, Mrs. K.
Otai of the investigation department, SRPS audit department
chief Capt. Levi Mugalu, SRPS�s Robert Mukindo and assistant
commissioner M. Magumba.
Mukindo said the scam was disclosed to SRPS chief Brig. Kale
Kaihura by an informant who said Karim had �pocketed� URA staff
who claimed that because of bad laws, taxes could not be
recovered.
Ends
Published on: Tuesday, 29th October, 2002
________________________________________________________________
DIGGING UP DATA: Revenue security chiefs Capt Mugalu and Mukindo
testify yesterday
--Data seized in office raid, URA probe told
By Milton Olupot
A 2.4b revenue loss to the State is bad but it is worse when the
man hired by the Government to collect taxes is said to have
pocketed sh55m bribe to frustrate the effort.
The Uganda Revenue Authority (URA) probe commission was
yesterday sh
ocked to learn that former URA chief Elly Rwakakooko
took sh55m from city tycoon Karim Hirji under unclear
circumstances.
Lead commissioner Justice Julia Ssebutinde heard that documents
seized by the Special Revenue Protection Services (SRPS)
indicated that Rwakakooko was paid by cheque on June 3, 2000.
The commission was investigating a case in which Karim, who owns
a string of hotels, is said to have evaded sh2.4b tax from 1996
to 2001.
The SRPS raided the hotels and their go-down in Ntinda and
seized evidence, including cash analysis books, two different
sets of accounts books for each hotel, one doctored for tax
purposes and another official one.
However, Karim petitioned the President, saying the tax
assessment was inaccurate and proposed to pay sh755,180,817.
Karim said commissions to clients, credit card payments and
incentives to clients were not considered when assessing the
taxes.
A letter from Fox Odoi, the president�s legal adviser, to Karim
said the President�s Office had instructed URA chief Aslund
Annebrit to consider his (Karim�s) objections. URA has now asked
Karim to pay the sh755,180,817 within a year in three
installments.
Odoi�s letter, dated August 23, 2002, said the matter had been
referred to Annebrit and Karim was asked to discuss it with her.
Ssebutinde, who was angered by the revelations, criticised the
President�s Office for alleged preferential treatment and said
the tax law must be followed.
�Sometimes one feels like throwing in the towel on the written
parts of the law and follow what is practised. There is no law
constituting the Office of the President as an appellate office.
�The CG (Commissioner General) must start from where she
stopped: collect the sh2.4b. Either we throw in the towel and go
by the practice or we follow the written law without
preferential treatment.
�You better advise the CG appropriately. The whole damn batch
of
you are incompetent. How can you allow this Fox Odoi to advise
you? You have the law in your hands. There is no credible reason
why you should not collect the sh2.4b. I do not see anyone
sacking you for doing right,� she said. She wondered why it took
the SRPS to discover the fraud and not the URA audit department.
SRPS discovered that Karim under-declared Value Added Tax (VAT)
and Pay As You Earn (PAYE) for the Grand Imperial, Equatoria and
Botanical Beach hotels from sh44b to sh22.1b.
The witnesses yesterday included Adrian Kyamugina, acting
commissioner tax investigation and audit, Naja Twaha, Mrs. K.
Otai of the investigation department, SRPS audit department
chief Capt. Levi Mugalu, SRPS�s Robert Mukindo and assistant
commissioner M. Magumba.
Mukindo said the scam was disclosed to SRPS chief Brig. Kale
Kaihura by an informant who said Karim had �pocketed� URA staff
who claimed that because of bad laws, taxes could not be
recovered.
Ends
Published on: Tuesday, 29th October, 2002
________________________________________________________________
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