URA recovers sh1.1b in evaded taxes
Mar 27, 2011
UGANDA Revenue Authority is holding three kilogrammes of smuggled gold estimated at sh208m. The captured gold is part of URA’s total recovery of over sh1.1b in February.
By Vision Reporter
UGANDA Revenue Authority is holding three kilogrammes of smuggled gold estimated at sh208m. The captured gold is part of URA’s total recovery of over sh1.1b in February.
The gold came through the DR Congo, which is a major gateway for smuggled items in the Great Lakes region because of an unstable political situation especially the eastern part of the country.
Daniel Arorwa, the URA manager for enforcement and operations, disclosed that the tax agency was tipped off through intelligence leads within and outside the country.
“The offence management is ongoing and we will get to the bottom of it,†said Arorwa.
The gold is part of the wider scam of white collar schemes of tax evasion through Uganda’s porous borders.
Arorwa said gold was difficult to detect because smugglers break the consignment into smaller bits and carry them in different parts of their bodies including folded shirt sleeves. The gold was captured two months ago.
42% of the total recovery from evaded tax crimes were from undervalued products.
“This means our taxpayers have been under-declaring value and they have had to top up taxes,†said Arorwa.
The most under-declared products are hardware and garments from China and used motor vehicles.
Hides and skins remain one of the most tax defaulted against for which traders do not want to pay the newly-introduced export levy.
The second biggest tax vice was outright smuggling that accounted for 37% of the total crimes.
Although all the border posts are porous, the majority of the crimes are in the eastern part of the country with Busitema topping the list with the highest recoveries of sh455m in taxes. “Performance for the eastern region has increased from 63% in January to 70% in February. This could be attributed to increased vigilance by the Busitema-Iganga teams,†said Arorwa.
Recoveries from central region, however, went down from 31% to 19%.
URA suspected that most unscrupulous importers and agents could have migrated to Kampala.
UGANDA Revenue Authority is holding three kilogrammes of smuggled gold estimated at sh208m. The captured gold is part of URA’s total recovery of over sh1.1b in February.
The gold came through the DR Congo, which is a major gateway for smuggled items in the Great Lakes region because of an unstable political situation especially the eastern part of the country.
Daniel Arorwa, the URA manager for enforcement and operations, disclosed that the tax agency was tipped off through intelligence leads within and outside the country.
“The offence management is ongoing and we will get to the bottom of it,†said Arorwa.
The gold is part of the wider scam of white collar schemes of tax evasion through Uganda’s porous borders.
Arorwa said gold was difficult to detect because smugglers break the consignment into smaller bits and carry them in different parts of their bodies including folded shirt sleeves. The gold was captured two months ago.
42% of the total recovery from evaded tax crimes were from undervalued products.
“This means our taxpayers have been under-declaring value and they have had to top up taxes,†said Arorwa.
The most under-declared products are hardware and garments from China and used motor vehicles.
Hides and skins remain one of the most tax defaulted against for which traders do not want to pay the newly-introduced export levy.
The second biggest tax vice was outright smuggling that accounted for 37% of the total crimes.
Although all the border posts are porous, the majority of the crimes are in the eastern part of the country with Busitema topping the list with the highest recoveries of sh455m in taxes. “Performance for the eastern region has increased from 63% in January to 70% in February. This could be attributed to increased vigilance by the Busitema-Iganga teams,†said Arorwa.
Recoveries from central region, however, went down from 31% to 19%.
URA suspected that most unscrupulous importers and agents could have migrated to Kampala.