President Yoweri Museveni is investigating reasons why Uganda Revenue Authority (URA) took more than three years sitting on the whistle blower information showing tax evasion at Kampala Nissan which is also called East African Motors Ltd, Business Focus reveals.
State House economic desk sources show that through one of his most trusted generals, Museveni in March met the whistle blower and was shocked to hear that even when he badly needs money to run in his struggling government, URA was being disinterested when given such important information.
The whistle blower told Museveni how rogue elements in URA had even tried to reveal his identity to the Kampala Nissan bosses which is against the whistle blower Act.
Credible sources reveal that Museveni’s trusted general worked with fair minded URA actors and investigated and discovered that some URA officials didn’t only try to compromise the whistle blower’s security, but also tried to change the whistle blower number in order to deny the whistle blower the 10% commission which is given to him or her by law.
Whereas URA bosses weren’t aware, Museveni ordered his general to begin parallel investigations to confirm possible connivance between rogue elements in URA and possible Kampala Nissan agents.
The Museveni investigations are aimed at making sure that URA bosses don’t fraudulently mess up the probe to cause financial loss to government.
The company is on the spot for under declaring its profits in order to pay little taxes.
This went on for many years and the liability is close to Shs100bn, according to sources close to the audit investigations.
The company also owns a building called Kampala Properties next to Centenary Park but the building which is a business doesn’t pay taxes to URA because it has no TIN (Tax Identification Number) number.
It also hides behind proxy companies and fake middle men between itself in Kampala and Ural truck makers in Russia in order to make their costs look very big in order to cheat URA taxes.
The company deals in Ural trucks mostly selling to the army of Uganda- the UPDF, RPF of Rwanda and the TZ military.
They also sell big trucks to UN missions and also to Amison in Somalia through the UPDF bosses at Mbuya under PS Beatrice Byengoma.
The latest big deal was for Amison through UPDF whereby they sold trucks worth USD17M and got a lot of money.
Sources say like USD12M on this is profit, but URA may end up taxing only less than USD1M because these guys are experts at hiding tax information.
There are documents showing details of this UPDF Amison deal that was signed at mid day and many big men left the room smiling from ear to ear, having been assured of good money to line their tummies.
The company name changed from Kampala Nissan to East African motors limited after disagreements arose with Motorcare which accused them of dubious dealings.
They would go to the manufacturer and buy cars directly from there yet the dealership agreement clearly stipulated they would only buy from Motorcare. The deal was cancelled and the Kampala Nissan bosses decided to leave the Nissan vehicles business and changed to trading in army trucks.
Business Focus has obtained both the big Amison deal they signed with Amison through UPDF plus the documents showing big details why the dubious Kampala Nissan men fell out with Motorcare.
Look at all of them below here, inclusive of the President’s letter about URA incompetence, the UPDF/Amison USD17M deal and the letter of the falling out with Motorcare. Wait for more updates about Kampala Nissan which is led by Salim Punjani, Shaffiq Punjani and their Russian advisor called Valeri Makarie.
If you have info on companies evading taxes or exposing weaknesses of government agencies, call: 0703828741
I cannot believe that you can make $12m profit from a $17m transaction. The only people who believe such fantasies are oppressors who are trying to find faults with a market system and extract bribes or taxes that are not really due