Uganda: Fuelex Distribution Depot Closed Over Tax Evasion

The fuel depot, a business of Fuelex Uganda Limited, is owned by Mr John Imaniraguha. Mr Kaujju said URA had cleared the tanker at Busia Customs as destined for DR Congo, meaning no tax was applied to it but on getting to Nalukolongo on Masaka Road, the fuel was dumped in Uganda. “The owner wanted to sell the fuel without paying tax which is evasion,” he said.

The fuel consignment had been purchased by Fuelex Ltd in Kenya but at the Busia-Uganda border, the consignment was transferred into the names of ETS Nelson Nzamzu C/o Jade Petroleum Limited. According to the tax body, it is not the first time Mr Imaniraguha is evading tax.  A statement from URA said he has a recurrent record of involvement in several customs offences, including fraudulent registration of his fuel tankers, and the illegal offloading of transit fuel into his fueling stations.

The authority revealed that between January 2006 to December 2009, six tax evasion cases have been filed against Mr Imaniraguha. Mr Safari Ngarukiye, the driver of the fuel tanker, and the turn-boy only identified as Masumbuko and one Martin have since been arrested and produced before the Chief Magistrate’s Court in Nakawa where extrajudicial statements were recorded from them.

“The duo testified that they had offloaded the product at Fuelex (U) Ltd Nalukolongo fuel depot.  Several importation transaction documents and registers were recovered, including Congolese registration plate numbers,” the URA statement reads in part.
Some of the measures that are being considered include; application of strong sanctions, maximum penalties, and revoking of operation licenses.

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