Tax evasion is as old as sin

 By J.B. Kizito Kiwanuka

When Zacchaeus, a short tax collector, bolted ahead of the crowd in Jericho to catch a glimpse of Jesus, his Jewish clients were astounded. They were later to snigger in contempt when Jesus invited him down from the branches of a Sycamore tree and immediately struck a deal with him.

What the story does not tell us, though, is that Zacchaeus may have been a victim of his own diligence. Tax collectors have never been popular for obvious reasons, but in Roman Palestine, they were particularly hated because they were seen as collaborators of the foreign oppressors.

Another fact to observe was the tax system of “tax farming” made tax collectors especially despised.

The Romans wanted to collect as much tax as they could without tying up their own personnel hence recruiting locals and giving them a percentage of what was collected.

The more they collected, the more they garnered. It is inconceivable to imagine that notwithstanding the above facts, the Jews and Pharisees with all their hypocrisy and pervasion were otherwise very exemplary taxpayers.

These were the days when merchants solely thrived on underhand methods to ply their trade for example, cheating unsuspecting clients through exorbitant prices, counterfeits and habitually eluding the taxman.

During the days of graduated tax, there was a man called Erukana in my home village, probably in his mid-50s at that time. He looked destitute but could still respond to the rains, till his small piece of land, subsist from it and pay sh7,000 in tax annually.

But he invariably kept clamoring about the tax and privately denouncing the collectors in the same breath, on top of renewing his requests for tax exemption with the sub-county chief. One day, Erukana’s request was granted, he landed the exemption.

His folks were notified when he engaged into uncontrolled boozing in celebration for days and weeks. He later became emaciated and passed on.

Uganda, despite being a developing country, has witnessed individuals and entities transform themselves into high flying business persons, having raised standards of financial discipline and business conduct, thanks to a conducive environment and globalization.

Individuals at the strategic levels of these bodies often burn the midnight oil drawing durable plans in the areas of brand management, customer retention, developing a competitive edge and tax planning amongst others.

These are the business values that should inform the mission and vision of trader associations like KACITA.

Unfortunately, the other group also still exists. The ones who have held onto the medieval notion that tax compliance and business prosperity are mutually exclusive but they are in danger of extinction because impending dangers loom large.

The reality is that with tax evasion, you are postponing a problem/obligation which you will later face in a crisis situation. I have seen would-be good business ideas come down under the weight of tax arrears complete with interest and penalties.

With cut-throat competition and an increasingly fickle consumer community, there may be no opportunity for second chances; you have to get it right the first time. Your consumers and suppliers alike will want to reconsider their relationship with you, the moment they sense you are taking issues with the tax man.

Besides, today’s taxman who is more informed and organized and has not spared any efforts to put in place   systems both computerized or otherwise that will in the end obviate the incidence of hidden and or under declared income.

I wonder what Zacchaeus would tell Erukana if they were to meet in the after-life! He would probably say,” Hey pal we were helping in many more ways than you were willing to believe….see what you did to yourself! Erukana would in a fit of hunger chide, “no need to rub it in you small statured man…I’d rather you save your breath for those who can benefit from your advice.”

The writer is a legal officer, Uganda Revenue Authority (URA)