NAKAWA – Uganda Revenue Authority (URA) has told tax payers who have evaded income tax to drop the practice or face the long arm of the law. According to a public notice issued Thursday, November 14th, 2019, this unscrupulous behavior is being carried out in several ways.
“The Uganda Revenue Authority has observed fraudulent practices in income tax declarations resulting into loss of revenue to the government. Taxpayers are introducing fictitious entries in their accounts such as loans and related expenses aimed at distorting their tax payable. Taxpayers are also using multiple Taxpayer Identification Numbers (TINs) and/or identities to suppress earned revenues,” it reads.
Adding, “Taxpayers filing NIL income in the income tax returns despite available information showing that they are transacting and earning income. Taxpayers overstating interest expenses and purchases in the income tax returns leading to under declaration of their income. The URA has instituted a 14-working days grace period starting from 14th November 2019 to 3rd December 2019 to enable affected tax payers to rectify their income tax returns citing this notice as the reason for amendment.”
The body warned, “Please note that taxpayers who do not comply will be investigated and could be prosecuted. URA further wishes to inform the general public that we are continuously monitoring all income tax declarations and hereby advises all registered taxpayers to ensure that they always conduct their business affairs in accordance with the law and to desist from non-compliant practices. In case of any further inquiries on this matter, please visit the office of the commissioner tax investigations department.”
It is not clear how much the tax body has lost in this practice but annual it is estimated to loss between Shs150 to Sh200 billion.