A case involving Rwanda Revenue Authority (RRA) and a Kigali-based businessman has opened at the Supreme Court, with the appellant praying the country’s highest court to overturn a lower court’s ruling on a Rwf130 million case.

Justin Mugabo had earlier dragged RRA to the Commercial High Court after the tax body demanded him to pay the money in Value Added Tax on artistic services he had provided to Gacaca courts between 2007 and 2010.

The Commercial High Court ruled in RRA’s favour, prompting Mugabo to appeal the case to the Supreme Court.

On the first day of the appeals hearing on Tuesday, the appellant argued that the decision by the Commercial High Court disregarded the provisions of the 2003 Constitution as well as the VAT law of 2001.

Abel Nsengiyumva, the appellant’s lawyer, argued that the judges in the commercial court did not consider articles 87 of the VAT law (on goods and services that are zero rated) and 93 of the Constitution regarding the mode of adoption of legislation and laws hierarchy.

He told court that judges at the Commercial High Court only interpreted the law based on the Kinyarwanda version, ignoring the English and French texts which he said are clearer as far as this issue is concerned.

"We think that Rwanda Revenue Authority would have been more descriptive on what items that would be taxed bearing in mind those that are charged at zero rate,” he said.

Article 87 of the code on VAT describes supplies that are zero rated as those delivered under an agreement between the Government and a donor.

However, RRA lawyers said the businessman did not provide the services as a donor since he competed for the tender and went on to supply the services as any contractor would.

His services therefore do not fall under the category of exonerated or zero-rated supplies, Olivier Rugira, one of the two defence lawyers, said.

He also told court that, even in circumstances where goods and services are zero tax rated, the service provider is usually charged only to be refunded the money later on.

The case will resume on January 15 next year.