Parliament passes Tax Procedures Bill
Sep 16, 2014
PARLIAMENT has passed the Tax Procedures Bill which is meant to harmonize, consolidate and streamline tax procedures into a single law
By Moses Mulondo & Henry Ssekanjako
PARLIAMENT on Tuesday passed the Tax Procedures Bill which is meant to harmonize, consolidate and streamline tax procedures into a single law in order to simplify tax administration.
The finance committee chairman Robert Kasule Ssebunya said, “This Bill will promote tax compliance as it streamlines tax administration.”
The finance minister Maria Kiwanuka said the law would empower URA to effectively enforce taxation and therefore generate more revenue for the country.
Clause 41 of the Bill provides for access to premises, records and data storage devices to avoid the common problem of under declaration by companies which pay fewer taxes than what they should be paying.
Clauses 48 to 53 of the Bill provide for penal tax for default in furnishing a tax return, late payment of tax, failing to maintain proper records, making false or misleading statements, understating provisional tax estimates and failing to apply for registration.
Every taxpayer will in the new law be required to maintain in the English language records including in electronic format to determine the taxpayer’s tax liability under a tax law.
Following a recommendation from the committee, parliament passed clause 22 (d) of the Bill with an amendment from 28 to 45 days as the period within which payment of any tax, penal tax and interest.
Clause 58 of the Bill states that a person who knowingly or recklessly makes a statement to a tax officer that is false or misleading commits an offense and is liable on conviction to a fine not exceeding sh960,000 or imprisonment not exceeding two years or both.
According to clause 59 of the Bill, a person who obstructs a tax officer in the performance of duties under a tax law commits an offence and is liable on conviction to a fine not exceeding sh960, 000 or imprisonment not exceeding two years or both.
Unlike on several occasions where the opposition and NRM have sharp disagreements over clauses, there was consensus for sides nearly on all clauses.
Reports from URA indicate Uganda loses billions of tax revenue as a result of non-compliance by taxpayers and it is hoped that this new stringent law will improve the compliance levels.
Related stories