Uganda Revenue Authority (URA) plans to extend Covid-19 tax administrative measures

Uganda Revenue Authority (URA) has said that it will extend most of the administrative measures created in light of the COVID-19 pandemic to encourage tax compliance from the public. According to the Commissioner-General of URA, the measures have proved important and useful to both the taxpayers and the authority. URA unveiled the measures at the beginning of this financial year with the aim of boosting compliance amongst taxpayers. However, measures such as voluntary disclosure had deadlines.

 

The voluntary disclosure program is a tax compliance enhancing measure introduced by URA during the 2020/21 financial year. The programme pardons taxpayers 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. It is pertinent to note that the Voluntary disclosure only applies only to those taxpayers who have not been prompted by URA through tax investigations, audits or visits. In addition, CG also said that the laws that were passed to provide relief to businesses such as deferred payments on Value Added Tax, Corporation and Withholding Tax will be sustained until the next financial year subject to review by the Ministry of Finance.

URA was this financial year given a steep target of Ush 21.8 trillion which was later revised downwards to Ush 19 trillion due to the anticipated effects of Covid-19. However, URA has since registered surpluses in tax collection to which the commissioner-general said was partly as a result of lowered targets. The Authority said it would employ technology in its endeavours to plug tax leakages such as identifying potential taxpayers in the real estate sector, the electronic fiscal receipting and invoicing solution and digital tax stamps among others.