Nov. 24 (Bloomberg) -- Heritage Oil Plc lost its appeal against the Uganda Revenue Authority’s order to pay 1.1 trillion shillings ($428 million) in capital gains taxes, the Daily Monitor reported, citing the Tax Appeals Tribunal.
The appeal was dismissed with costs after the company failed to show that the authority’s tax assessment was “excessive and erroneous,” the Kampala-based newspaper said.
The tax is owed after Heritage sold 50 percent of its interests in two Ugandan oil blocks to Tullow Oil Plc in January 2010 for $1.5 billion, the newspaper said.
Heritage lawyers in July requested the tribunal halt its proceedings after the company started an arbitration process in London over the dispute, the newspaper said.
To contact the reporter on this story: Fred Ojambo in Kampala via Nairobi at email@example.com.
To contact the editor responsible for this story: Paul Richardson at firstname.lastname@example.org.