By Taxman Reporter
It has been discovered that a number of tax fraud schemes are continuously manifesting at points of registration, transit and boarding off of motor vehicles. However, through coordinated exchange of information between URA and other Government agencies, like the Uganda Police, the culprits are already being netted. One of these is , Elibright Sembogga who was sentenced to jail by the Anti-Corruption Court in Kampala. He fraudulently registered a vehicle with registration number UBE-692B.
The vehicle was first registered in his names in 2018 as; Elibright Sembogga Kalule and since then, it switched to four other owners.
According to Denis Kugonza, the Commissioner Tax Investigations, the vehicle was falsely declared in ASYCUDA World as a boarded-off Government vehicle which upon assessment, led to payment of less taxes of about UGX 5,658,000 as opposed to UGX 39,312,137 as per the URA Motor vehicle guidelines.
The accused, Elibright Sembogga and three (3) others were found guilty of using false documents under the Customs laws. Sembogga was found guilty on two counts, and fined USD 1,000 and ordered to pay a top up tax of UGX. 33,654,137 to make good for the tax loss. His 3 accomplices were each fined USD. 2,400. These were; Abdul Wahab Matovu Muwonge, the Director of Miracle Agency Limited a clearing firm that was hired to help with clearance of the motor vehicle. Sentongo David – an employee of Miracle Agency Limited and Mukiibi Ezra – a clearing agent.
Kugonza encourages the business community to desist from engaging in fraudulent schemes that not only affect revenue but also cost one ‘s reputation in society.
“Members of the business community involved in selling vehicles are encouraged to always make appropriate declarations at Customs points. The buyers of vehicles should also always check with URA on customs tax payment status before concluding the transaction to avoid the inconvenience,” he added.
How then does one commit an offense; an importer or customs agent commits an offense if in anyway is knowingly concerned in any fraudulent evasion of payment of duty according to Section 203(e) of East African Community Customs Management Act 2004. An importer further commits an offense under Section 203 (b) of East African Community Customs Management Act 2004 if he makes or causes to be made any declaration, certificate, application or other document, which is false or incorrect.
