19 firms voluntarily disclose Shs14 billion in unpaid taxes

Through the voluntary disclosure programme, URA has put a window through companies can declare non-compliance without fearing fines and penalties. Photo | file

Summary

• Companies have suffered heavy fines after being found at fault in Ugandan courts of law especially the tax appeals tribunal following investigations by URA that faulted them for evasion or under declaration among other tax offenses.                                               
• URA has a steep target for tax collection this financial year, set at Shs21.8 trillion and already, for the first two months, the Authority has surpassed its targets. 

By Christine Kasemiire

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19 firms voluntarily disclose Shs14 billion in unpaid taxes

URA has a steep target of Shs21.8 trillion. Therefore, it has been putting in place measures through which it can achieve the target.  

BY Christine Kasemiire

In a matter of months, Uganda Revenue Authority (URA) through the voluntary disclosure programme has collected Shs14.3b in taxes that ought to have been paid from at least 19 companies. 

Data from URA indicates that businesses have embraced the voluntary disclosure programme which seeks increase compliance in tax payment.
“So far, 19 companies have benefited from the voluntary disclosure programme with a total of Shs14.3b collected,” Mr Ian Rumanyika, the URA manager public and corporate affairs, told Daily Monitor. 
However, he declined to reveal the identities of the companies and from which sectors. 

Mr Rumanyika could also not reveal whether, among the 19 companies, some were new taxpayers who have been operating but not remitting taxes or already pre-existing on the tax register.
Voluntary disclosure is a tax compliance enhancing measure introduced by URA during the 2020/21 financial year after the amendment of section 66 of the Tax Procedures Code act 2014.

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The programme pardons tax payers from interest or fines once they voluntarily disclose taxes that ought to have been paid earlier on but were not disclosed or were partially disclosed.
Voluntary disclosure only applies if the taxpayer has not been prompted by URA through tax investigations, audits or visits.  
“There are terms and conditions for this: that before you disclose, URA has not initiated an action against you for non-disclosure. If you disclose after we have already initiated an audit that is not voluntary disclosure. Voluntary disclosure is when we are not aware, but you come through,” said Mr Rumanyika. 

Tax payers are required to voluntarily disclose to the commissioner general in writing after which they enter an agreement with URA on the modalities of the tax payment.
Important to note, URA specified that the programme is open to all taxes including withholding tax and Pay as You Earn, among others. 
The measure is expected to cut costs of doing business for URA as well as private businesses as resources used for investigations and audits are spared thus saving tax payers’ money from both URA and businesses’ ends. 

However, Mr Rumanyika emphasised that businesses that do not take advantage of the programme could face repercussions as URA prepares to embark on strict compliance enforcement. 
“After this grace period which will be at the discretion of the commissioner general, URA will do an aggressive engagement in tax investigations, compliance checks and audits and tax queries which will affect those who did not take advantage of this opportunity,” he warned.