Taxation Of Petroleum Operations In Uganda: A Critical Analysis Of The Principles Governing Taxable Income And Statutory Interpretation Of The Income Tax Act.
Article by Ndobya Gerald & Innocent J. Rwothomio
This paper analyses the taxation of petroleum operations in Uganda, a leading revenue provider to the government of Uganda, whose tax regime both at law and practice is new and unique. The paper seeks to establish what the chargeable income is as well as the principles under which this income is ascertained and taxed for petroleum operations. The authors also seek to establish what rules of statutory interpretation are relevant in interpreting this unique tax legislation, cognizant of both the investor and government interests. This is by analyzing key provisions of the Income Tax Act and cases where court has attempted to interpret or give guidance on how such sections should be interpreted. The paper establishes the taxable income and illustrates the aggressive statute interpretation nature of the overall taxation regime and concludes that there is a need for relaxation in the rates of tax imposed so as to encourage investment.