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Chinese top tax evaders, says URA

By Vision Reporter

Added 1st July 2008 03:00 AM

EIGHTY percent of under-declared imports belong to Chinese, James Kisale, the Uganda Revenue Authority’s (URA) acting assistant commissioner for enforcement, has said.

By Ibrahim Kasita

EIGHTY percent of under-declared imports belong to Chinese, James Kisale, the Uganda Revenue Authority’s (URA) acting assistant commissioner for enforcement, has said.

“They have got used to our system and exploit the loopholes to evade taxes. The system is not weak but people take advantage of the loopholes.”

Kisale said the increased under-declaration of imports by investors, especially foreigners, would cause a revenue shortfall of about sh1.6b annually if not stopped.

“They try to maximise profits at the expense of the local investors because they get credit facilities and are also exempted from import and excise duties,” he said.

Paul Kyeyune, the public and corporate affairs commissioner, said a Chinese firm called East African Textile Industries had under-declared textiles.

“This firm is registered here. It brought in bedsheets but declared that they were importing materials used for manufacturing,” Kyeyune said.

“Acting on our informers, we went and checked the goods and found that out of 206 bales, 112 bales were fully finished bedsheets.”

Kisaale said: “The investors paid only sh8.7m Value Added Tax. On verification, we found that sh82m was evaded.”

He said they had preferred charges against the investors who would have to pay sh122m including penalties.

Chinese top tax evaders, says URA

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