Uganda tax officials won a legal battle against the company running KFC restaurants after judges rejected its request to block tax adjustments. The Tax Appeals Tribunal said Kuku Foods Uganda Ltd failed to prove it needed protection from the Uganda Revenue Authority's actions. The judges noted the company doesn't have to pay any disputed amount since no final tax bill exists.
The fight started when tax auditors cut Kuku Foods' reported losses from 16.8 billion to 8.3 billion Ugandan shillings, claiming the company hid income and wrongly recorded expenses. Kuku Foods argued that these changes would harm its business value and make it harder to raise money. The court disagreed, saying the company can still file returns based on its figures until a final decision comes.
Judges ruled that stopping tax officials from making adjustments would prevent them from doing their job properly. Kuku Foods runs all KFC outlets in Uganda as part of a larger East African group operating in four countries. The company has served fast food in Uganda since 2012, becoming a major player in the restaurant market. This case represents its biggest legal challenge as the government increases pressure on corporate taxpayers.
The fight started when tax auditors cut Kuku Foods' reported losses from 16.8 billion to 8.3 billion Ugandan shillings, claiming the company hid income and wrongly recorded expenses. Kuku Foods argued that these changes would harm its business value and make it harder to raise money. The court disagreed, saying the company can still file returns based on its figures until a final decision comes.
Judges ruled that stopping tax officials from making adjustments would prevent them from doing their job properly. Kuku Foods runs all KFC outlets in Uganda as part of a larger East African group operating in four countries. The company has served fast food in Uganda since 2012, becoming a major player in the restaurant market. This case represents its biggest legal challenge as the government increases pressure on corporate taxpayers.
