The Civil Division of the High Court in Kampala has dismissed an application in which six supermarkets sought an interim injunction halting the e-receipting system by Uganda Revenue Authority.
Also known as the Electronic Fiscal Receipting and Invoicing Solutions((EFRIS), the e-receipting system is where businesses are supposed to transmit transaction details to URA in real-time and issued with electronic receipts and invoices for purposes of assessment.
As part of the system, businesses are mandated to issue e-invoices or e-receipts or employing electronic fiscal devices that are linked to a centralized invoicing and receipting system or devices authenticated by URA .
The tax body chose six supermarkets including Capital Shoppers, Quality Supermarket, Kenjoy Supermarket, Jazz Supermarket and Mega Standard Supermarket to participate in a pilot phase of implementation of the program that started in May, 2020.
However, the six supermarkets ran to court seeking for an interim injunction against the same.
However, on Friday, Justice Musa Ssekaana ruled that there is no genuine reason for the court to grant a temporary injunction over the matter.
“There are no hard and fast rules that can be laid down for granting interim reliefs or temporary injunctions in public law matters or judicial review applications. The courts should be reluctant to restrain the public body from doing what the law allows it to do or to execute its core mandate or function. In such circumstances, the grant of an injunction may perpetrate breach of the law which they are mandated to uphold or apply,”Ssekaana ruled.
He, therefore, ruled that he could not grant the interim orders as had been asked for by the six supermarkets to halt URA’s pilot study of the e-receipting system.
“In sum and for the reasons stated here in above this application fails and is dismissed with no order as to costs,”Ssekaana said.