TAT Decisions On Leases And Their Characterisation – The Ratio Decidendi In VIVO Energy & Mukwano Properties Cases

In both cases, the taxpayer had amortised lease rental expenses for land that had been paid in advance for the term of the lease.

In both cases, Uganda Revenue Authority (URA) disallowed expenses of rent and premium for leased land as being non-deductible capital expenditures under the Income Tax Act…