Police investigate URA over failure to collect shs16.1bn in taxes from closed Game Stores

The Police’s Criminal Investigations Directorate(CID) has written to the Uganda Revenue Authority seeking an explanation to guide in investigations over failure by the tax body to collect shs16.1 in taxes from Game Discount World.

In a 28, August, 2024 letter to the Commissioner General of URA, Mark Odong Paul, the CID deputy director in charge of economic fraud and anti-corruption says they are investigating circumstances under which URA employees caused a financial loss to government when they failed to collect shs16.1 billion in taxes from Game Discount World Limited.

The case is registered under CID HQTRS GEF: 166/2024 and stems from 2019.

Consequently, CID has asked URA to avail certified copies of the URA audit report for  July, 09, 2019 of Game Discount World (U) Ltd but also a communication by the tax body to Game Discount World (U) Ltd about the original tax liability of shs32. 9 billion.

“The purpose of this letter is to request you to avail us with certified copies a letter dated 12th May, 2022 from AF Mpanga Advocates to Commissioner General URA requesting for an intervention by resolving the matter amicably through sanctioning an internal review and further reconciliation on Game Discount World (U) Ltd tax liability and the Consent Settlement Order signed between Game Discount World (U) Ltd and URA,” CID said in the letter.

The police’s investigations directorate has also asked URA to provide a certified copy of instructions to the Domestic Tax Department to review shs16.1 billion for the local supplies payment of Game Discount World (U) Ltd.

Contacted for a comment on the matter, URA spokesperson, Robert Kalumba said he would get back to us but by publishing time, he had not.

In 2021 the Tax Appeals Tribunal okayed URA to collect a tax liability of more than Shs21b from Game Discount World (Uganda) Ltd.

This was after Game Discount World (Uganda) Ltd, lodged an application with the tax tribunal challenging URA’s decision of imposing the tax liability.

This was after a URA customs post clearance audit established that the Game Discount World omitted several incidental costs during the importation of goods from Masstores (pty) Ltd trading as Mass discounters, a fellow subsidiary incorporated in South Africa.

Game Stores ceased operations  in Uganda in 2022.