Uganda Revenue Authority (URA) on Monday closed a local television station, WBS over sh7.2b tax arrears.
Uganda Revenue Authority (URA) has placed a local television station, WBS under receivership over sh7.2b tax arrears.
URA says it placed the television under receivership in a bid to recover the tax arrears.
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person “placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights”, especially in cases where a company cannot meet its financial obligations or enters bankruptcy.
“We have not closed WBS,” URA officials later explained through a Twitter message.
“We have only used one collection method among many to collect arrears. WBS is still going strong,” the tweet said.
URA said its aim is not to close any business, but to get to a mutual understanding and see how to develop Uganda together.
“Considering associated effects like loss of employment. This could enable us collect the arrears without necessarily closing down the TV.”
The tax body said the Receiver has been given mandate to appraise WBS operations and collect funds to settle arrears.
Placing a creditor into Receivership is one of the modern methods of enforcing collection.
URA will make a decision on what to do with WBS TV after, according to Salaam Waiswa, a debt collection officer URA.
WBS is still owned by Prof. Gordon Wavamunho.
Credit: theinsider.ug