A city businessman, Sikhou Gassama, 63, a director of Gassama & Brothers Co. Ltd, has been convicted by the Anti-Corruption Court after pleading guilty to multiple counts of tax fraud arising from investigations covering the period between 2016 and 2022.
Investigations conducted by the Uganda Revenue Authority (URA) Tax Investigations Department established that Gassama deliberately under-declared income from fish maw trading and other business activities. URA uncovered undeclared earnings amounting to UGX 32.5 billion, resulting in a tax liability of UGX 9.65 billion. Investigators also identified suspicious financial practices, including structured bank deposits aimed at avoiding reporting thresholds and false customs declarations intended to evade import duties.
The findings led to several charges under the Tax Procedures Code Act, Cap 343, and the East African Community Customs Management Act of 2004. On December 8, 2023, Grade One Magistrate Esther Asiimwe remanded Gassama to Luzira Prison after court records showed he had grossly under-declared income and concealed business records. The matter was initially scheduled for mention on December 20, 2023.
Court proceedings resumed on September 18, 2025, when Gassama was ordered to appear for trial, which began the following day before Principal Grade One Magistrate Paul Mujuni. The prosecution presented evidence indicating that the accused filed false tax returns, failed to declare taxable income totaling more than UGX 32.5 billion, and channelled proceeds through multiple accounts to conceal their origin.
Although Gassama initially pleaded not guilty, he later changed his plea to guilty on seven counts of making false statements to a tax officer, contrary to Section 67 of the Tax Procedures Code Act, after the prosecution had presented its evidence. Prosecutors told court that the offences were serious and distorted fair market competition, disadvantaging compliant businesses.
Under the law, the offence of making a false statement to a tax officer carries a maximum penalty of up to 10 years’ imprisonment, a fine of up to UGX 110 million, or both, per count. Other offences for which Gassama was charged attract varying penalties.
The case highlights URA’s ongoing efforts to identify, investigate, and prosecute tax evasion as part of its mandate to safeguard national revenue and promote voluntary tax compliance. URA has reiterated its call for taxpayers to ensure accurate declarations and comply with tax laws, warning that evasion and false declarations will continue to attract full legal consequences.
Correspondence by Balukusa Christine
