RRA, rice importer in court battle over Rwf200m

The Nyamirambo-based Kigali Commercial High Court yesterday adjourned a hearing until October 29 in a case in which a rice importing company seeks a refund of Rwf212m from Rwanda Revenue Authority (RRA).Garibsons Commodities Central Africa Ltd, which is owned by Pakistanis, claims RRA failed to honour a decision by the Supreme Court passed in December 2011 ordering it to refund the former money lost in extra taxes. The company dragged the revenue body to court in July 2010, claiming over taxation on its imported rice.The company claimed RRA was supposed to charge them custom tax of US$170 per tonne but they were charged US$362 per tonne.The case made rounds in corridors of courts until the Supreme Court ruled in favour of Garibsons Commodities and ordered RRA to refund the importer about Rwf212.8million.However, despite the court order, RRA did not refund the company neither did the tax collector inform the importer reasons as to why they did not.In a letter dated Feb 23, 2012 to RRA, Isaac Bizumuremye the legal counsel of the importer wondered why RRA had ignored the court order.“Is your silence communicating to our client that RRA is a public body with enormous powers, machinery and resources and above all is above the law and cannot be bound by any court decision of the Supreme Court?” the letter seen by The New Times reads in part.A week later, RRA responded saying the refund process had commenced. However, in a surprise twist of events, on August 6, 2012, RRA wrote to Garibsons Commodities Central Africa Limited arguing the company’s request for a refund had some loopholes and they needed to conduct further investigations before taking a decision on whether to pay or not. “… We regret to inform you that your request (for a refund) is not granted and you are required to clear your goods at the cost of $386 per tonne,” a letter to the importer seen by The New Times says.This prompted the company to go back to court, seeking possible ways of compelling RRA to pay.The Commercial High Court judge yesterday postponed hearing because the company lacked some necessary documents that the judge wanted to have a look at.Speaking to The New Times, Suleman Butt, the company Managing Director said; “we won all the court cases, RRA was asked to process a refund but now its eight months since the Supreme Court passed its judgment and nothing has been done this is why we are back in court requesting that the decision taken by the court be enforced.”“We are operating using bank money, we have a loan with KCB of which we have been given one month to pay if not all our property will be auctioned and we wont have business any more,” said Butt.Efforts to get a comment from RRA were futile by press time.

National

RRA, rice importer in court battle over Rwf200m