URA told to investigate businessman Drake Lubega over alleged tax evasion

A tenant who has chosen to remain anonymous has written to tax body, Uganda Revenue Authority asking it to investigate alleged acts of tax evasion by city businessman Drake Lubega.

In a letter dated March 27th, 2019, the tenant from Qualicel building says they pay rental fees to Diamond Trust Bank account number 0122328001 in the names of Margerine George William but receipts indicate otherwise.

“The receipts we get are in the names of DL Properties but our complaint is that the receipts we get are different from the amount paid. When you pay rent of shs2,000,000, you get a receipt of shs250,000 and we have attached receipts for your perusal,” the tenant says.

In the letter, the tenant also alleges that power is paid for differently from rent which he says is outrageous.

He says rent ranges between shs1.5 million and eight million shillings per shot but what is declared by the landlord is different.

“We wish to inform you that he is evading taxes by reducing the number of shops on the building. i.e Qualicel Nabugabo has 368 shops.”

In the letter, the tenant names 18 city buildings allegedly owned by Lubega that he says are supposed to be the centre of investigation by the tax body over tax evasion by the businessman.

When contacted for a comment, Lubega said he is not aware of the letter.

“I have not seen the letter you are talking of and everything being alleged in it is unknown to me,”Lubega told the Nile Post on phone.

The developments come at a time when Lubega together with fellow businessman Mansur Matovu are in court following a petition by traders in Qualicel, Nabukeera, and Jamboree arcades in which they sued the landlords for closing their shops yet they had paid rent to Horizon coaches, the former landlord and owned by deceased fellow businessman, Charles Muhangi.

The High Court will today begin the hearing of the petition in which traders in Qualicel, Nabukeera and Jamboree arcades sued their landlords for closing their shops yet they had paid rent to Horizon Coaches Limited, the former landlord.

The 292 traders took the matter to the Civil Division of the High Court seeking compensation for the alleged losses resulting from the continued dispute over the ownership of the buildings.