According to information on the Taxman blog, some individuals, facing the prospect of legal consequences like court judgments and potential imprisonment, opt to take their chances. Charles Kyangwa, the Director of Shepherd Events Ltd, chose to gamble by issuing four post-dated cheques, which were subsequently returned by the bank due to insufficient funds.
Mwajumah Nakku Mubiru, the Manager of Customs and NTR Prosecutions at the Uganda Revenue Authority (URA), revealed that Shepherd Events Ltd had incurred a VAT liability of UGX 54,795,378. Kyangwa had entered into an agreement with URA to settle this debt through six monthly installments.
Despite this arrangement, the cheques issued by Shepherd Events Ltd, beginning from June 2022, failed to clear due to insufficient funds, indicating a breach of trust and violation of Section 385 of the Penal Code Act of Uganda.
Mwajumah highlighted URA’s past practice of accepting post-dated cheques from taxpayers to meet their tax obligations, especially when immediate funds were unavailable. Regrettably, Kyangwa did not avail himself of this opportunity.
Taking decisive action, URA initiated legal proceedings against Kyangwa, leading to his arrest on March 20th, 2024. Kyangwa, whose signature appeared on both the agreement and the dishonored cheques, now faces charges in the Anti-Corruption Court for issuing fraudulent cheques.
Currently, URA is actively pursuing legal action against individuals who knowingly issue cheques without adequate funds. This proactive stance aims to combat fraudulent practices and ensure equitable tax contributions from all Ugandans.
