UGANDA, Kampala | Real Muloodi News | Isaac Aijuka, a member of Uganda Revenue Authority’s (URA) Tax Education Unit, has issued a timely call to taxpayers, urging them to capitalise on the temporary waiver provided by the government, set to expire on December 31, 2023.
The waiver covers penalties and interest for tax non-compliance and has been in effect since July 1, 2023.
Aijuka delivered this crucial message during a URA business clinic breakaway session at the Uganda Entrepreneurship Congress held in the Yusuf Lule CTF building at Makerere University on November 16, 2023.
Emphasising the significance of this opportunity, Aijuka stressed the consequences of disregarding URA communications, cautioning that systems would eventually catch up with non-compliant individuals, even many years later.
Encouraging a proactive approach, Aijuka recommended that those facing challenges meeting their tax obligations should engage with URA to establish agreeable payment plans.
He highlighted the government’s willingness to work with taxpayers, emphasising that negotiations could be reached for those finding it challenging to settle the principal amount demanded.
In addition to the waiver information, Aijuka shed light on various aspects of taxation during the session.
Underlining the importance of maintaining meticulous business records, he explained that URA employs a self-assessment regime, allowing taxpayers to assess themselves and voluntarily file returns.
However, he cautioned that URA retains the authority to audit businesses, even retrospectively for up to five years, in cases of irregularities or non-compliance.
Aijuka clarified the process, stating that penalties and interest are levied on top of the principal tax assessed.
However, he emphasised that individuals have the right to appeal or object to the assessment and penalties imposed by URA.
Covering a spectrum of topics, Aijuka delved into the benefits of voluntary disclosure, the repercussions of tax evasion, the role of tax agents, and the principles of taxation.
Addressing the broader economic perspective, he discussed the importance of tax revenue in achieving economic independence for a nation.
Highlighting URA’s mission to encourage voluntary compliance and enhance tax collection, Aijuka reiterated that the taxes collected are allocated to the Ministry of Finance and Parliament for appropriation.
He underscored that URA operates within the parameters set by Parliament, with annual targets for tax collection.
In concluding his session, Aijuka clarified the eligibility criteria for income tax, stressing that individuals earning Shs 10 million and above per annum are subject to Pay as You Earn (PAYE).
He shared that URA has simplified the filing template, enabling taxpayers to navigate the process independently, with assistance available at any URA office free of charge.
Aijuka extended an invitation to students to join tax societies in various universities, fostering knowledge and providing potential job opportunities.
He highlighted URA’s Vita (Voluntary Income Tax Assistants) training program initiated in universities to disseminate basic tax knowledge and practical skills.
In urging the public to visit the URA website for valuable insights, Aijuka emphasised the significance of staying informed and engaged with tax-related matters.
As the deadline for the tax waiver approaches, taxpayers are encouraged to seize this opportunity for relief and compliance.
READ MORE LIKE THIS:
URA Issues Rental Tax Ultimatum: Appreciates Landlords and Offers Second Chance
URA Mandates E-receipts for City Landlords to Tackle Tax Evasion
URA Launches Voluntary Disclosure Program for Landlords to Encourage Tax Compliance