Taxpayers against law to grant URA access to bank accounts

A shop attendant at a shop in Kampala last week. PHOTO BY FAISWAL KASIRYE 

By FARIDAH KULABAKO

Posted  Monday, June 17  2013 at  01:00

In Summary

The move comes as some companies are accused of failing to voluntarily disclose information meant to support URA’s tax collection mandate.

Tax payers have opposed the amendment in laws to allow the Uganda Revenue Authority have access to tax payers’ financial records in order to force them to respect their tax payment obligations in case of default.

Speaking at a PricewaterhouseCoopers post budget meeting on Friday, Dr Simon Kagugube, executive director, Centenary Bank said changing the law to allow the tax man access people’s bank accounts is not right and could be “abused.”

He added that the measure could also slowdown growth in the banking sector which is currently struggling to attract people.


“People will resort to keeping money under their mattresses if this measure takes effect. URA can explore other ways of making tax payers to honour their tax obligations,” Mr Kagugube said.

Finance Minister Ms Maria Kiwanuka announced in her 2013/14 budget speech that government plans to amend the Financial Institutions Act to allow URA to access taxpayer’s financial records to determine their liability, as an exception to the confidentiality provisions, where a bona fide tax audit or investigation has been initiated.

Mr Leo Kibirango, the former Bank of Uganda governor and Institute of Corporate Governance of Uganda president, said if amended, businesses might be forced to bank their money with offshore financial institutions.

This, according to him, will hamper efforts to deepen financial inclusion in the country. The uptake of keeping money with financial institutions in Uganda has been slow, with only 4.5 million bank accounts out of a population of about 33 million people.

In her response, URA commissioner general Allen Kagina, said the radical move to compel tax payers to release information is in the wake of some companies failing to voluntarily disclose information that is meant to aid in its tax collection mandate.

“There aren’t many sources of information because of lack of infrastructure to allow the flow of such information. Therefore, financial institutions are the only way through which such information can easily be accessible. We ask them to cooperate,” Ms Kagina said.
Some businesses are said to under declare taxes while others default.


The tax body recently published a list of 312 individuals, companies and government ministries for allegedly defaulting on tax payment, amounting to Shs170.26 billion.

The name and shame list sought to compel the concerned parties to settle the outstanding arrears within seven days, or else face penalties.

A bank manager at one of the top banks also reportedly survived spending a weekend in jail for allegedly refusing to grant URA access to accounts of the alleged tax defaulters.