Uganda Revenue Authority –URA has frozen the bank accounts of Rift Valley Railways over a 9.4 billion shillings debt in unpaid taxes.
RVR General Manager for Western, Mark Rumanyika, confirmed their accounts had been frozen by URA.
Rumanyika described the 9.47billion shillings RVR allegedly owes URA as an income tax assessment issue that was accrued between 2007 and 2009.
According to Rumanyika, on January 14 this year, the High Court in Kampala prevented URA from collecting the money it claims RVR owes it.
Court directed RVR to execute payment of 10 percent of the money which is 947million shillings. However on January 17, URA in total disregard of court decision, opted to attach RVR’s accounts.
Rumanyika explained that the tax laws in Uganda allow for appeal which process seems to have been disregarded by URA.
Asked whether the closure of the accounts had affected the operations of RVR in anyway, Rumanyika said the consortium would continue to operate. He declined to disclose how much money was on the two bank accounts or where the accounts were.
Rumanyika added that they still had some time to deal with the matter and hoped it would be resolved in time to ensure that even RVR staff gets paid on time.
However, URA has remained quiet on the issue. Sources within URA told Uganda Radio Network that the tax authority was not at liberty to comment on the RVR accounts.