The Supreme Court has ruled in favour of Rwanda Revenue Authority (RRA) in a three-year dispute involving taxation valuations with a rice importer, Garibsons Commodities Central Africa. 

The Kigali Commercial High Court, in November, last year, ruled that RRA overtaxed Garibsons Commodities Central Africa. 

The commercial court then ruled that RRA should refund the rice importer Rwf212.8 million, a decision the tax body contested and appealed before the Supreme Court. 

The dispute is now finally over, according to RRA, after making rounds in corridors of courts until last week, when the Supreme Court ruled that the tax valuation on the firm was spot on and that it did not have to refund the money. 

The dispute arose when Garibsons Commodities dragged RRA to court, challenging the decision by the tax body to revise the company’s transaction value from $170 (about Rwf110,000) to $362 (about Rwf235,000) per imported tonne of rice. 

The company claimed it was overtaxed in the revisions, while RRA argued that the previous contract in the company’s bill of lading (a document used in the transportation of goods) was understated to evade taxes. 

"Thorough investigations into the case revealed various bad business practices in which Garibsons Commodities was involved in trying to evade taxes that included false rice prices contained in the contract of purchase and Bill of Lading,”  Jean Marie Gakwerere, the acting director for taxpayerservices at RRA, said yesterday. 

"RRA could not treat rice importers differently by applying different transaction values as it was for Garibsons Commodities that had claimed $170 per tonne, yet other rice importers are charged between $360 and $365 per tonne,” Gakwerere said

Gakwerere said in various court proceedings, it was "proved beyond doubt” that Garibsons Commodities had been using wrong transaction values that were based on false contracts and Bill of Lading. 

Talking tough

"It is also imperative to note that RRA will not tolerate any bad business practice that is intended to evade taxes, cause market imbalances or favour some business enterprises as this contributes to retarded business growth,” Gakwerere added. 

Sulaiman Butt, the managing director of Garibsons Commodities, said he accepts the court’s decision and will abide by it "because no one is above the law.”

"I strongly appeal to RRA to continue working with my company and to facilitate more investments in the country. I’m willing to continue my business and to invest with the help and the guidance of RRA,” he said.