Uganda Tax Appeals Tribunal threw out a tax claim for Shs 1.1 billion against Premier Recruitment Limited. The panel decided the company did not need to pay taxes on money given to workers heading overseas. The business belongs to Rajiv Ruparelia, whose father, Sudhir, made his fortune in real estate. The tribunal found that no employment relationship existed between Premier Recruitment and these workers. The panel stated clearly that funds provided to workers cannot be taxed under current laws.
This decision will affect many companies that send Ugandan workers abroad. Crystal Kabajwara led the tribunal, with members Siraj Ali and Christine Katwe making the ruling. The case started when tax officials labeled advance payments for passports, medical tests, training, and flight tickets as taxable income. URA demanded Shs 1,139,728,993, claiming Premier acted as either an employer or tax agent. Premier fought back, saying these payments merely covered costs that workers later repaid before leaving Uganda.
The tribunal agreed with Premier Recruitment that the money represented recoverable advances rather than wages. They determined the company only handled recruitment work, with actual job contracts existing between workers and foreign employers. The tax authority failed to prove that these payments counted as taxable income, according to the judges. Premier Recruitment won full legal costs from the case.
This decision will affect many companies that send Ugandan workers abroad. Crystal Kabajwara led the tribunal, with members Siraj Ali and Christine Katwe making the ruling. The case started when tax officials labeled advance payments for passports, medical tests, training, and flight tickets as taxable income. URA demanded Shs 1,139,728,993, claiming Premier acted as either an employer or tax agent. Premier fought back, saying these payments merely covered costs that workers later repaid before leaving Uganda.
The tribunal agreed with Premier Recruitment that the money represented recoverable advances rather than wages. They determined the company only handled recruitment work, with actual job contracts existing between workers and foreign employers. The tax authority failed to prove that these payments counted as taxable income, according to the judges. Premier Recruitment won full legal costs from the case.
