A general view shows traffic on a street in the DR Congo’s capital Kinshasa on December 21, 2016. The Anti-Fraud Brigade of Kinshasa City have threatened to seize a commercial house, Uganda House, owned by the Uganda government in Kinshasa over non-payment of property tax arrears. PHOTO/REUTERS
The Anti-Fraud Brigade of Kinshasa City in the DR Congo have threatened to seize a commercial house, Uganda House, owned by the Uganda government in Kinshasa over non-payment of property tax arrears to the tune of $443,000.
A source, who preferred anonymity because he has no authority to talk to the press, said the Kinshasa City authorities alleged that the Uganda government has been collecting taxes from tenants occupying the building for more than 10 years without remitting them to the Congolese city.
“After negotiations, it was agreed that Uganda pays tax arrears for only four years (2019-2023). The Uganda government in Kampala allowed them to pay the money, but the officials in Kinshasa have been dilly dallying. The Anti-Fraud Brigade have written to the embassy that they would seize the property if payments were made,” a source said.
Uganda House is at number 17 Avenue Tombalbaye in Kinshasa City. The building was built during the era of Idi Amin Dada in the 1970s. Later, it was turned into a commercial property.
The latest threat by the Anti-Fraud Brigade to seize the building if the payments are not made was contained in a September 13 letter to the Uganda Embassy in Kinshasa.
Mr Vincent Waiswa Bageya, the Permanent Secretary of the Ministry of Foreign Affairs, confirmed that they have tax arrears that they are so willing to pay, but the challenge was whom to pay.
“We appropriated the money and the mission will pay,” Mr Bageya said last Friday, adding that the payments will be made next quarter of the financial year.
Mr Bageya referred us to Amb Twaha Matata, the Deputy Ambassador, for more details about the issue.
Amb Matata said the issue has been on since 2016 and Uganda committed itself to paying the taxes, but through formal channels.
“It isn’t us who have failed to pay, it is the administrators of the city (Kinshasa), who have complicated the matter,” Amb Matata said.
2022 case
He said in 2022, the issue was raised again, and the Anti-Fraud Brigade (AFB) was required to share account details where Uganda Embassy had to deposit the money.
Unfortunately, AFB gave them a private account number, which the Uganda diplomats queried because they aren’t allowed to pay individuals. “When we asked them, whose account was, they (AFB) told us that it was for their lawyer. We intervened with the DR Congo Foreign Affairs ministry so that we can pay to the right people,” Amb Matata said.
On August 28, Uganda Ambassador to DR Congo Farid Kaliisa also wrote to the Director General of the General Directorate of Taxes of DR Congo demanding to renegotiate the amount of money to be paid.
“The purpose of this appointment would be to seek your guidance on how to settle this tax in accordance with the applicable legal and regulatory provisions in the DRC,” Amb Kaliisa said.
“I intend to discuss the possibility of DGRK (the tax authorities) taking ownership of the file and engage with the embassy to expedite the resolution of this issue, thereby avoiding potential delays.”
However, Amb Kaliisa isn’t recognised as Uganda Ambassador to DR Congo since he hasn’t been accredited by the DR Congo government two years since he reported for duty.
After several correspondences, it was later agreed that the Uganda Embassy deposits the money on the account of the DR Congo Foreign Affairs ministry, which will pass on the funds to concerned Congolese authorities.
Amb Matata said the tax arrears issue is also being handled at the political level between the ministries of foreign affairs of the two countries.
