Thursday, 26 February 2015

Government wins Heritage Oil case

Uganda Revenue Authority (URA) will not have to reimburse about Shs1.1 trillion to Heritage Oil after United Nations Commission on International Trade Law (UNCITRAL) ruled in its favour in a London court on Tuesday.
The legal battle between Uganda and Heritage Oil Tax which emerged after the latter sold its stake to Tullow has been going on since 2011.
Should the case have gone the oil company’s way, it would mean that URA would have had to surrender Shs1.2 trillion it collected from the company as a Capital Gains Tax.
Capital Gains Tax is a tax on the profit when you sell (or dispose of’) something (for example an asset) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive.
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Uganda’s national coffers stands to gain 400 million dollars after an international tax tribunal in London ruled in its favour against Heritage oil firm.
The United Nations Commission on International Trade Law Tribunal brought this protracted legal battle to an end on Tuesday by ruling that Heritage’s sale of assets to another oil firm Tullow was subject to a capital-gains tax. Court also awarded another $4 million as legal costs.
The claimant in his appeal to court claimed that the Ugandan government had improperly slapped a tax on the gain realized on Heritage’s sale of its interests in two production sharing agreements to Tullow.
Heritage demanded that government was obligated to reimburse the amount of the tax, which was over US$400 million.
However, the Tribunal unanimously ruled that there was no basis for the claimant to obtain compensation for the assessment of the tax on its gain in the sale transaction with Tullow.
Heritage first lost in a verdict delivered by Uganda’s tax appeals tribunal in Nov 2011.
- See more at: http://www.ntv.co.ug/news/business/25/feb/2015/uganda-government-wins-tax-case-against-heritage-oil#sthash.wu0Pgg8p.dpuf
Uganda’s national coffers stands to gain 400 million dollars after an international tax tribunal in London ruled in its favour against Heritage oil firm.
The United Nations Commission on International Trade Law Tribunal brought this protracted legal battle to an end on Tuesday by ruling that Heritage’s sale of assets to another oil firm Tullow was subject to a capital-gains tax. Court also awarded another $4 million as legal costs.
The claimant in his appeal to court claimed that the Ugandan government had improperly slapped a tax on the gain realized on Heritage’s sale of its interests in two production sharing agreements to Tullow.
Heritage demanded that government was obligated to reimburse the amount of the tax, which was over US$400 million.
However, the Tribunal unanimously ruled that there was no basis for the claimant to obtain compensation for the assessment of the tax on its gain in the sale transaction with Tullow.
Heritage first lost in a verdict delivered by Uganda’s tax appeals tribunal in Nov 2011.
- See more at: http://www.ntv.co.ug/news/business/25/feb/2015/uganda-government-wins-tax-case-against-heritage-oil#sthash.wu0Pgg8p.dpuf
Uganda’s national coffers stands to gain 400 million dollars after an international tax tribunal in London ruled in its favour against Heritage oil firm.
The United Nations Commission on International Trade Law Tribunal brought this protracted legal battle to an end on Tuesday by ruling that Heritage’s sale of assets to another oil firm Tullow was subject to a capital-gains tax. Court also awarded another $4 million as legal costs.
The claimant in his appeal to court claimed that the Ugandan government had improperly slapped a tax on the gain realized on Heritage’s sale of its interests in two production sharing agreements to Tullow.
Heritage demanded that government was obligated to reimburse the amount of the tax, which was over US$400 million.
However, the Tribunal unanimously ruled that there was no basis for the claimant to obtain compensation for the assessment of the tax on its gain in the sale transaction with Tullow.
Heritage first lost in a verdict delivered by Uganda’s tax appeals tribunal in Nov 2011.
- See more at: http://www.ntv.co.ug/news/business/25/feb/2015/uganda-government-wins-tax-case-against-heritage-oil#sthash.wu0Pgg8p.dpuf
Uganda’s national coffers stands to gain 400 million dollars after an international tax tribunal in London ruled in its favour against Heritage oil firm.
The United Nations Commission on International Trade Law Tribunal brought this protracted legal battle to an end on Tuesday by ruling that Heritage’s sale of assets to another oil firm Tullow was subject to a capital-gains tax. Court also awarded another $4 million as legal costs.
The claimant in his appeal to court claimed that the Ugandan government had improperly slapped a tax on the gain realized on Heritage’s sale of its interests in two production sharing agreements to Tullow.
Heritage demanded that government was obligated to reimburse the amount of the tax, which was over US$400 million.
However, the Tribunal unanimously ruled that there was no basis for the claimant to obtain compensation for the assessment of the tax on its gain in the sale transaction with Tullow.
Heritage first lost in a verdict delivered by Uganda’s tax appeals tribunal in Nov 2011.
- See more at: http://www.ntv.co.ug/news/business/25/feb/2015/uganda-government-wins-tax-case-against-heritage-oil#sthash.wu0Pgg8p.dpuf
Uganda’s national coffers stands to gain 400 million dollars after an international tax tribunal in London ruled in its favour against Heritage oil firm.
The United Nations Commission on International Trade Law Tribunal brought this protracted legal battle to an end on Tuesday by ruling that Heritage’s sale of assets to another oil firm Tullow was subject to a capital-gains tax. Court also awarded another $4 million as legal costs.
The claimant in his appeal to court claimed that the Ugandan government had improperly slapped a tax on the gain realized on Heritage’s sale of its interests in two production sharing agreements to Tullow.
Heritage demanded that government was obligated to reimburse the amount of the tax, which was over US$400 million.
However, the Tribunal unanimously ruled that there was no basis for the claimant to obtain compensation for the assessment of the tax on its gain in the sale transaction with Tullow.
Heritage first lost in a verdict delivered by Uganda’s tax appeals tribunal in Nov 2011.
- See more at: http://www.ntv.co.ug/news/business/25/feb/2015/uganda-government-wins-tax-case-against-heritage-oil#sthash.wu0Pgg8p.dpuf

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