The accused, Mr. Dai Qi, is a Director in Fujian Industries Park Limited and was charged on three counts of making false declarations to a tax officer contrary to Section 58(1) (a) of the Tax Procedures Code Act, 2014.
This was in respect to invoice trading by Fujian Industries Limited in the period of March till May 2020, during which the company claimed Input VAT based on supplies from 3 taxpayers and thus causing loss of taxes worth UGX. 226,920,749.
The accused was granted bail on 01/06/2023 by the Anti-Corruption Court in Kampala where he was required to pay UGX. 10,000,000 in cash and UGX.300,000,000 of non-cash bail for his sureties.
When the matter came up for mention on 21st July, 2023, the accused changed his plea and pleaded guilty to all the three counts. He was consequently convicted on all the three counts. The trial Magistrate then proceeded to sentenced him to a maximum fine of forty-eight currency points on each of the counts or 3 years’ imprisonment in default as provided for under the law and was further ordered to pay the VAT tax liability of UGX. 226,920,749.
Brief Facts about Fujian Industries Park Limited and What they deal in.
Fujian Industries Park Co. SMC Ltd is located in Wakiso Industrial Area and it has been in operation for three years with its headquarters in Wakiso as well as a whole coverage of East Africa. They deal in production and sale of furniture such as Hardwood doors, flush doors, wooden furniture, kitchen cabinet, wardrobe among others.
Despite the good business income earned by owners, the Directors, just like many other foreign investors that have been arrested by the revenue authorities in Kampala in the recent past, the country is continuously losing a lot of revenue as a result of tax fraud schemes orchestrated by by the so called “Investors”.
