URA crackdown on VAT fraud underway

Feb 19, 2018

The public has been tasked to avoid using fake VAT invoices in tax declarations

PIC: URA's Patrick Mukiibi encouraged taxpayers to avoid complicity in the non-existent purchases payment

TAXATION

KAMPALA - Uganda Revenue Authority's (URA) crackdown on value added tax (VAT) invoice fraud is underway, with the public cautioned to avoid falling victim, lest they be prosecuted in court.

In a public notice, the authority says it is aware of falsifications incorporated in business purchases that are meant to reduce legitimate VAT payments.

"The forged invoices are generated to portray a business transaction which is not genuine. In reality, there is no supply/movement of goods and services," the notice reads.

VAT is an indirect tax on consumption. It is levied on specified goods and services, which are described as taxable supplies, locally manufactured or sold and imported.

The URA commissioner for tax investigations, Patrick Mukiibi, said a comprehensive probe is underway. He encouraged taxpayers to avoid complicity in the non-existent purchases payment.

The public has been tasked to avoid use of fake VAT invoices in tax declarations. Additionally, taxpayers are expected to make mandatory payments to URA before every 15th day of the month.

Amnesty offer

URA has given a 90-day amnesty offer to culprits, which started on January 1 and ends on March 31, to harmonise their tax returns, lest the long arm of the law is prodded to take action.

In event of conviction for forgery of official document under section 349 of the Penal Code, an offender could be slapped with up to 10 years imprisonment.  

(adsbygoogle = window.adsbygoogle || []).push({});