Summary of ruling

• The Applicant deals in the business of developing infrastructure with maiden projects in Kalangala.
• The Applicant declared interest paid on loans as exempt in its returns.
• The Respondent issued an additional tax assessment to the tune of Ushs. 1,872,938,802 on ground that the Applicant failed to withhold tax on interest.
• The Applicant’s objection was partially allowed.
• All the conditions stipulated in Section 82 (5) of the Income Tax Act were met. Hence, the Applicant is not liable to pay the WHT which arose from the purported failure to withhold.
• Application allowed with costs.