URA closes Tororo hotel, radio station

URA officials and law enforcement officers outside the Rock Classic Hotel premises in Tororo after it’s closure yesterday. Photo by Joseph Omollo.

What you need to know:

Rock Classic Hotel reportedly owes URA Shs294.8 million while Rock Mambo FM radio owes Shs33 million in VAT arrears.

Tororo

Rock Classic Hotel and Rock Mambo FM radio, are among prominent businesses in Tororo Town which were closed by the Uganda Revenue Authority (URA) on Friday, in a countrywide crackdown on defaulters of Value Added Tax (VAT).

The entities were closed down by Quick Way Auctioneers and Court Bailiffs, a firm contracted by URA to recover the outstanding VAT arrears.

According to Mr Stanley Kabyemera, the URA supervisor for legal services and board affairs, the closed businesses had been served several notices reminding them to clear their outstanding VAT arrears but failed to pay. He said most of the affected entities had accumulated VAT arrears and had never shown any commitment to clear their debts.

“We treasure our clients but when they fail to meet what is required of them by government, we don’t compromise the law but resort to applying minimal force,” Mr Kabyemera said.

He disclosed that all the closed businesses had been given a period of five days to clear their outstanding VAT arrears and failure to comply would warrant the court bailiff to attach their properties and auction them to recover the money they owe URA.
The demand note showed that Rock Classic Hotel had accumulated VAT arrears of Shs294.8 million while Rock Mambo FM radio owed Shs33 million.