The window for voluntary disclosure comes after an amendment of section 66 of the Tax Procedures Code Act, 2014. The amendment gives the URA commissioner general a discretion to ask taxpayers to voluntarily disclose and be forgiven on the penalties and interest on money they hadn’t paid.
Uganda Revenue Authority - URA says it will waive penalties
for taxpayers who will come out to voluntarily declare the taxes that they were supposed to
pay but didn’t pay it.
The window for voluntary disclosure comes after an amendment
of section 66 of the Tax Procedures Code Act, 2014. The amendment gives the URA
commissioner general a discretion to ask taxpayers to voluntarily disclose and be
forgiven on the penalties and interest on money they hadn’t paid.
In a note to the general public, URA says the voluntary disclosure must
be in writing and “must be accurate and highlighting any previous
URA has not put a timeline of when amnesty will end.
Vincent Seruma, the assistant commissioner for corporate affairs, said it
remains open since the law allows it.
//Cue in; “the voluntary …
Cue out…advantage of that.”//
usually does audits to catch tax cheats. When one is caught, they pay heavy fines and interest on the money they had hidden from the tax body.
The voluntary disclosure window means one avoids the audits.
Doris Akol, former URA boss and now a tax partner at
law firm Dentons said on Monday that voluntary disclosure will only be
complete when the taxpayer pays the principle tax that they’re declaring to
have not paid before.
This means that if you make a disclosure to URA that
you didn’t pay the tax you were supposed to pay, you should go ahead and pay that
tax. Akol said one of the constituents expected to take
advantage of this call is rental tax earners or landlords. The government has for
long said landlords were evading to pay taxes.
//Cue in: “Rental tax…
Cue out…. Should have paid.”//
Last month, the government announced it was hiring an American company, RippleNami Inc to help in the
collection of rental tax in Uganda. The company, the government said, would
identify properties, their owners and link them to the URA tax identification
Uganda’s tax-to-GDP ratio remains
low at just 13 per cent with the wide belief that many people and businesses are not paying
their fair share of tax to the government.
Voluntary disclosure is one of the
initiatives that the tax collector wants to use to get more businesses and
people pay what they are supposed to pay.