Martin Erone

[Angelo Izama @Opiaiya]

Solid analysis from Senior Energy Specialist Counsel Martin Erone on the @UmemeLtd transition to #UEDCL.
https://t.co/tNSHQN5mCC @NankabirwaRS @ERA_Uganda @MEMD_Uganda @KagutaMuseveni

[UETCL @uetcl]

#Breaking: The Kabale Substation has been energized. This is the final component of the 132kV Mirama - Kabale Transmission Line that is aimed at improving power supply in the Kigezi Region. @UEDCLTD team is currently energizing the local feeders cc @KwameEjalu @nyamadon @newvisionwire

[KAA (Kampala Associated Advocates) @KAAdvocates]

TAX CASE ALERT:

What Amounts to an Export Service?

The High Court of Uganda has restated the conditions for a supply of services as an export to qualify to be zero VAT (value added tax) rated in Allied Beverages Co. Limited v Commissioner of Uganda Revenue Authority Civil Appeal No. 0039 of 2022.

In this case, Allied Beverages Co. Limited (“the Appellant”) had entered into a Service Agreement with The Coca Cola Export Corporation (“TCCEC”) to provide brand marketing, market research and other related services for TCCEC, which is incorporated and located in the United States of America. The Appellant conducted all the above mentioned services from Uganda by placing adverts on radio stations, among others.  The Appellant did not charge TCCEC VAT claiming that the services were export services which attract VAT at zero rate.

URA contended that the Appellant should have charged VAT at the standard rate of 18% and issued an assessment of UGX. 17,400,459,133 for a period of 2016 to 2020. URA contended that the services did not qualify as an export as the contract between the Appellant and TCCEC did not indicate a place of consumption of the service as a place outside Uganda and that the services were performed in Uganda.

The Appellant filed an Application at the Tax Appeals Tribunal challenging the assessment, however, the Tribunal ruled in favour of URA holding that the place of use and consumption of the Services was Uganda and not the United States ofAmerica, thus the Applicant ought to have charged VAT at 18%.

On appeal to the High Court, the appeal was allowed in favour of the Appellant. The High Court held that in determining whether a service is an export to qualify for zero rated, the determining factor is the location where the services supplied are finally consumed or used not where they are performed from. That the fact that the services are performed in Uganda by the Appellant, as per the invoices on record is immaterial. The Court further held that Ugandans or people in Uganda who listen or watch the adverts do not qualify as the consumers or users of the Appellant’s services provided to TCCEC. That since the particular purpose of the services supplied by the Appellant to TCCEC is to enhance the sale of concentrate by its concentrate manufacturers and not the people of Uganda who listen or watch the adverts, the services were exported services that qualify to be zero rated under the VAT Act and the VAT Regulations.

The High Court further held that the contract need not expressly state that the services shall be consumed outside Uganda as long as the contract establishes the location of the consumer of the services to be outside Uganda.

The High Court also relied on the destination principle in the OECD Guidelines which emphasizes that goods and services are taxed in the jurisdiction where they are consumed. The Court further held that the Tribunal erred in law when it disregarded the destination principle without departing from its earlier decision and also given the fact that there exists a decision of a superior court applying that principle. The High Court emphasized the need to use the OECD Guidelines since they are not in conflict with Ugandan law and it was immaterial that Uganda is not a member of the OECD.

The above ruling from the High Court is an important precedent for taxpayers in Uganda offering services to persons outside Uganda. As per the above ruling, what is important is not that the services are performed in Uganda but rather that the person indicated in the Contract as the recipient and consumer of the service is outside Uganda.

We are happy to have represented Allied Beverages Company Limited and we thank the KAA tax team comprised of Oscar Kambona, @BruceMusinguziK , @KattoThomas & @FERDINANDIUS for having represented our Client and won in the High Court.

[Joshua Karamagi @JoshKaramagi]

Hon. @NankabirwaRS - Minister @MEMD_Uganda has flagged works to commence for the Kampala Metropolitan Transmission System Improvement Project at the Buloba Substation.

This project aims to upgrade the power transmission infrastructure in Kampala, which marks a significant milestone in improving Uganda’s electricity supply, driving economic development, and reducing power outages.

As @uetcl, we commit to working with all relevant stakeholders to ensure this project is delivered on time, within budget and to acceptable international standards.

[KAA (Kampala Associated Advocates) @KAAdvocates]

The Supreme Court of Uganda has restated the conditions for one to qualify to be called a bonafide purchaser for value without notice. In this case, the Court upheld the findings of the lower Courts to the effect that the appellant did not possess a valid certificate of title for the suit land, and therefore, he did not satisfy the element of possession of a valid certificate of title as a precondition for being a bonafide purchaser for value without notice. The court specifically held that a valid certificate of title must be recognised or traced to a legitimate source from the materials on record such as the area schedule form, which was not the case with the appellant's certificate of title.

https://t.co/lpEfEhKtbP

[Reuters @Reuters]

Factories that produce fertilizer separate hydrogen from natural gas and use it to make ammonia. That requires fossil fuels, but increasingly companies are turning to using hydrogen from water instead, to create so-called green ammonia

[Irene Kaggwa @Kinem4P]

The undersea cables that provide us connectivity to the global Internet via the Indian ocean are damaged again. The consequence is degradation in quality of Internet service that is via these 2 cables. @UCC_Official
@ConsumerUCC https://t.co/wSDmMD9Wsn

[BBC News Africa @BBCAfrica]

Tanzania have shut down five hydroelectric stations in a bid to reduce excess electricity in the national grid.

It is the first time Tanzania, which suffers chronic power shortages, has closed hydroelectric stations due to excess production.

https://t.co/v1MiwefLSP

[Martin Erone @m_erone]

The World Bank Group plans to connect 300 million Africans to electricity in partnership with with the African Development Bank. https://t.co/Q2NNrfy4l2 via @economics

[Martin Erone @m_erone]

@UETCL_CEO @uetcl @KwameEjalu @MEMD_Uganda @NankabirwaRS @ERA_Uganda @ubctvuganda @MauriceMugisha @GovUganda @GCICUganda Congratulations to you and the entire team upon this good performance. I wish you and your entire team even more success.

[KAA (Kampala Associated Advocates) @KAAdvocates]

COMPANY LAW ALERT: The Supreme Court of Uganda has in the case of CTM Uganda Limited & Ors Vs Allmuss Properties Uganda Limited & Ors, stated that companies should as a matter of practice indicate the names of the members of the company in attendance in the resolutions prepared for registration before the Registrar of Companies @URSBHQ.

The Court further buttressed the need for the Office of the Registrar of Companies to carefully execute its duty by examining special resolutions brought for registration. The necessity to scrutinize such resolutions is to ensure that they were obtained in strict adherence to the procedure set down by the Act.

https://t.co/VLwR0ACjhP

[KAA (Kampala Associated Advocates) @KAAdvocates]

Wishing you all a Merry Christmas holiday filled with love, cheer, peace and joy.

[Joshua Karamagi @JoshKaramagi]

This is such a great milestone as we continue to build a robust transmission system in line with our mandate.

Well done team UETCL 👏 @KwameEjalu @NankabirwaRS @ERA_Uganda

[Martin Erone @m_erone]

Germany adopts a new, humble Africa policy https://t.co/UQvtMnhz0u

[Martin Erone @m_erone]

https://t.co/OgorNCIYrC

[UETCL @uetcl]

The Karuma-Olwiyo 400kV transmission line, a component of the Karuma Interconnection Project, aims to evacuate power from the Karuma Hydropower Station. The line has 154 towers and traverses 55km

[Martin Erone @m_erone]

@uetcl @NankabirwaRS Congratulations UETCL

[Martin Erone @m_erone]

https://t.co/ESFiX3Z1GX

[Martin Erone @m_erone]

https://t.co/IgrAqsiC4d

[UETCL @uetcl]

UETCL has today signed a contract with the Consortium of Toyota Tsusho Corporation and China Machinery Engineering Corporation for the construction of the Kampala Metropolitan Transmission System Improvement Project (1/3)