Inaugural Bennett annual tax clinic focuses on boosting tax compliance

Tax experts observe that compliance remains a significant challenge for many businesses and individuals in Uganda, mostly due to the negligence of business owners.

According to Daisy Owori, the managing director of Bennett Advisory Uganda, despite numerous awareness campaigns by the Uganda Revenue Authority (URA), there is a need to bridge the gap to improve tax collection and compliance.

She was speaking during the inaugural Bennett Annual Tax Clinic held today at Silver Springs in Bugolobi under the theme: Empowering SMEs, enhancing compliance, driving business growth.”

The event was held in partnership with the Uganda Revenue Authority, the National Social Security Fund, among others.

She noted that many taxpayers struggle with the complexity of tax laws and regulations, leading to unintentional non-compliance, which in the long run leaves them with huge sums to clear.

“As Bennett, we have over the years observed that business owners struggle with tax-related issues, and this is why we opted to hold this meeting to address their pleas. We understand that taxation can be complex, but they need to know that paying taxes is mandatory,” Owori noted.

She added that despite numerous innovations that seek to ease tax payment, some businesspeople are still locked out of technology, operating with outdated systems, while others are limited by poor infrastructure that hinders efficient tax filing and payment processes.

Meanwhile, Hafusah Seguya, URA Supervisor Tax Education in the Central region, spoke to the initiatives being deployed, such as the cutting-edge tax compliance system that aims at helping taxpayers maintain compliance while avoiding penalties and fines.

According to URA, this system is beneficial to both the tax body and taxpayers as it minimises exposure to additional taxes, interest, and penalties, while encouraging timely and accurate declarations.

She also highlighted that they are focusing on creating more awareness amongst the business community to enable them not to be caught on the wrong side of the law.

“Most business owners complain that URA closes their business, but did you know that some of them do not even have records for their daily operations. Some of them choose a lifestyle that is not healthy for the survival of their businesses. When you ask for the account, they have no documentation,” Seguya said.

The inaugural Bennett Annual Tax Clinic was attended by players from Small and Medium Enterprises and startups, manufacturing and processing, real estate and construction companies, plus retail, trade, and distribution entities.