Trial of employees accused of underdeclaring sh5.1b taxes temporarily halted

KAMPALA - The trial of five employees from Riders Uganda Ltd, accused of under-declaring taxes amounting to sh5.1 billion, has been temporarily halted to allow for a re-audit of the company’s tax assessment.

On July 17, 2025, defence lawyer Isaac Walukagga asked the Anti-Corruption Court in Nakasero to stay proceedings pending the completion of the audit.

He argued that the reassessment is necessary to determine the actual tax liability owed by the company.

Presiding principal grade one magistrate Paul Mujuni granted the request and adjourned the case to September 11, 2025, to allow time for the audit to be conducted.

“If the audit is not concluded by then, we shall proceed with the hearing of the case,” Magistrate Mujuni said.

Hildah Atusiimire, the acting manager of prosecution from the Uganda Revenue Authority (URA), did not object to the application.

Pius Mwilili Muli and Richard Drakuma, both directors of Riders Uganda Limited, along with three company accountants, Obadiah Kioko, Betty Namwanje, and Stephen Kasenge, are on trial at the Nakasero-based Anti-Corruption Court, presided over by Principal Grade One Magistrate Paul Mujuni.

They are facing three counts of making false statements to a tax officer contrary to section (1) (a) of the Tax Procedures Code Act, 2014. The offence elicits a fine not exceeding sh9.6million or imprisonment not exceeding two years or both.

Prosecution’s case

Prosecution, led by Thomas Davis Lomuria, Litigation Supervisor, alongside URA officers Allan Nkoyoyo and Stella Nayebare, alleges in the first count that between July 2015 and June 2021, Muli, Drakuma, Kioko, and Namwanje, while employed as directors and accountants at Riders Uganda Limited, knowingly made false statements to a tax officer.

They allegedly declared monthly VAT returns amounting to sh13.6 billion instead of the correct sh26.8billion, thereby causing a tax loss of sh2.5 billion to URA, for purpose of evading tax.

In the second count, it is alleged that Muli, Drakuma, Kioko, Namwanje, and Kasenge, while employed as directors and accountants at Riders Uganda Limited, knowingly made false statements to a tax officer between July 2015 and June 2021.

With the intent to evade tax, they declared annual sales of sh4 billion instead of the correct sh26.8billion, resulting in a tax loss of sh1.4 billion.

The prosecution further alleges that Muli, Drakuma, Kioko, and Namwanje, while employed as directors and accountants at Riders Uganda Limited, knowingly made false statements to the URA. They denied the charges and are out on bail.