The Director of Solento General Enterprises Limited, Lui Xiang Fei, is currently negotiating a plea bargain with the Uganda Revenue Authority (URA) to address allegations of tax fraud amounting to UGX 7.2 billion.
The case, presented before the Anti-Corruption Court in Nakasero on November 15, 2024, involves two charges against Fei, including making false statements to tax officers under the Tax Procedures Code Act of 2014. The prosecution, led by Allan Scot Nkoyoyo, revealed that discussions for a plea agreement are ongoing, though no resolution has yet been reached.
Alleged Tax Fraud
Fei is accused of under-declaring sales in his company’s value-added tax (VAT) returns, reportedly misrepresenting UGX 4.3 billion between October 2022 and December 2023. He is also charged with altering income tax returns for the financial years 2022 and 2023, allegedly underreporting tax liabilities by UGX 2.9 billion in December 2022.
The combined charges represent a significant breach of Uganda’s tax laws, with penalties under the Tax Procedures Code Act including up to three years in prison or fines up to UGX 5 million.
Plea Bargain Negotiations
A plea bargain, if finalized, would allow Fei to plead guilty in exchange for reduced penalties or alternative concessions. While Fei has denied all charges, his legal team appears willing to explore a settlement. Prosecutor Nkoyoyo emphasized the importance of thorough negotiations, requesting additional time to finalize the terms of the agreement.
Court Adjournment
The court adjourned the case to January 23, 2025, for further mention. During this time, both parties will provide updates on the plea bargain and any progress in resolving the case.
This case underscores the URA’s intensified efforts to curb tax fraud and ensure compliance among businesses operating in Uganda. If a plea deal is reached, it could set a precedent for resolving similar cases while recovering substantial revenue for the state.
| Key Details | Information |
|---|---|
| Accused | Lui Xiang Fei, Director of Solento Enterprises |
| Charges | Two counts of making false statements to a URA officer |
| Amount Alleged to be Under-Declared | Sh7.2 billion |
| Company Involved | Solento General Enterprises Limited |
| Court | Anti-Corruption Court, Nakasero |
| Next Court Date | January 23, 2025 |
| Prosecutor | Allan Scot Nkoyoyo, Uganda Revenue Authority |
| Potential Sentence | Three years in jail or a fine of up to Sh5 million |
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