Face Technology re-opens offices
Jul 12, 2009
FACE Technologies, the company contracted to process and issue driving permits, has re-opened its up-country offices after the Uganda Revenue Authority (URA) agreed to unfreeze its accounts.
By Cyprian Musoke
FACE Technologies, the company contracted to process and issue driving permits, has re-opened its up-country offices after the Uganda Revenue Authority (URA) agreed to unfreeze its accounts.
The accounts in Stanbic Bank, totalling about sh100m, had been frozen pending the company’s clearance of sh5b in tax arrears.
Works ministry spokesperson Susan Kataike, recently said the ministry negotiated with URA and the two had agreed to discuss a payment process with Face Technologies.
“This doesn’t mean that the underlying issues are resolved,†Kataike said.
Last month, the company closed its offices in Jinja, Mbale, Kampala, Mbarara, Gulu and Fort Portal, leaving many permit applicants stranded.
Face Technologies is a South African company contracted by the works ministry to design, print and supply computerised driving permits.
URA spokesperson Sarah Banage said the company appealed the assessment, which necessitated further negotiations.
“We couldn’t continue freezing the accounts,†she said.
In a letter last month, URA said the company earned income and employed staff for whom they were obliged to remit income tax, PAYE and VAT.
“As a result, URA commenced enforcement actions to recover the taxes,†URA wrote.
According to URA, the company had been deducting PAYE from its staff and not remitting it.
Face Technologies argued that URA charged VAT on driving permits of applicants before they proceeded to the company.
The source added that the company was charging applicants to recover its initial investment before it hands the project over to the Government.
On the issue of PAYE, the company said it remitted the salaries to UNISIS, its employment agency, which is responsible for the deduction and remittance of taxes.
UNISIS wound up its operations in Uganda some time back.
“None of the employees has a contract with Face Technology,†a source said.
UNISIS, a human resources consultancy firm formerly based at suite 237 Nile Conference Centre, wound up its operations in Uganda some time back.
FACE Technologies, the company contracted to process and issue driving permits, has re-opened its up-country offices after the Uganda Revenue Authority (URA) agreed to unfreeze its accounts.
The accounts in Stanbic Bank, totalling about sh100m, had been frozen pending the company’s clearance of sh5b in tax arrears.
Works ministry spokesperson Susan Kataike, recently said the ministry negotiated with URA and the two had agreed to discuss a payment process with Face Technologies.
“This doesn’t mean that the underlying issues are resolved,†Kataike said.
Last month, the company closed its offices in Jinja, Mbale, Kampala, Mbarara, Gulu and Fort Portal, leaving many permit applicants stranded.
Face Technologies is a South African company contracted by the works ministry to design, print and supply computerised driving permits.
URA spokesperson Sarah Banage said the company appealed the assessment, which necessitated further negotiations.
“We couldn’t continue freezing the accounts,†she said.
In a letter last month, URA said the company earned income and employed staff for whom they were obliged to remit income tax, PAYE and VAT.
“As a result, URA commenced enforcement actions to recover the taxes,†URA wrote.
According to URA, the company had been deducting PAYE from its staff and not remitting it.
Face Technologies argued that URA charged VAT on driving permits of applicants before they proceeded to the company.
The source added that the company was charging applicants to recover its initial investment before it hands the project over to the Government.
On the issue of PAYE, the company said it remitted the salaries to UNISIS, its employment agency, which is responsible for the deduction and remittance of taxes.
UNISIS wound up its operations in Uganda some time back.
“None of the employees has a contract with Face Technology,†a source said.
UNISIS, a human resources consultancy firm formerly based at suite 237 Nile Conference Centre, wound up its operations in Uganda some time back.