URA engages stakeholders on new return filing reforms

By Joshua Niyonshima

The Uganda Revenue Authority (URA) met with Tax Agents and Accountants today to discuss the new reforms in filing income tax returns and the tax waiver.

Section 16(5) of the Tax Procedures Code Actrequires all taxpayers with an annual turnover of Ugx 500 million or more to submit audited financial statements prepared by a certified accountant when filing their income tax returns.

Sarah Chelangat Muzungyo the URA Commissioner for Domestic Taxes, emphasized that tax agents play a vital role in ensuring the smooth implementation of these reforms.

“Tax agents represent the majority of our taxpayers and are crucial in ensuring accurate and timely filing,” she said. “By working together, we can achieve better compliance, improve revenue mobilization, and ease the transition to the new tax filing requirements.”

The training sessions highlighted how the interest and penalty waiver, available until the end of the year, can benefit businesses by reducing their overall tax liability.

“For businesses, settling their tax liabilities on time under this waiver will help ease their financial burden and improve overall compliance,” said Sarah. She advised them to opt for early payment of their principal taxes to avoid disappointment at the last hour.

During the meeting, Garry Kizito the Ag. Assistant Commissioner DT Compliance Management introduced the new web-based system for the Local Excise Duty (LED) returns, which will take effect on November 1, 2024.

Tax agents were trained on how to use the pre-filed LED returns, designed to streamline the submission process and reduce errors. The transition to the web-based system is a key part of URA’s push for greater efficiency and transparency in tax administration.

“There has always been a need to make it fully automated and online, that is the decision that URA management has taken. Provisional returns are fully online, now we bring you LED returns fully online and the next phase is coming,” Garry elaborated.

Garry also outlined the expectations for tax agents, particularly regarding the new requirement for audited accounts.

“Taxpayers with turnovers above 500 million shillings will need to provide audited accounts when filing their returns. This will not only improve the accuracy of the tax filings but also encourage better financial practices among businesses.”

What are audited books of accounts?

Nandeeba Julius, the Manager of sectors – construction and real estate, explained that audited financial statements are a set of financial reports that have been examined and verified by an independent, external auditor.

“Audited financial statements provide a reliable, objective, and thorough assessment of a company’s financial health. The audit process adds credibility to the financial information presented by the company and ensures that it complies with relevant accounting standards.”

Tax Agents and Accountants Speak out

Fredrick Olweny, a tax agent with GAFCO Tax Consultancy, welcomed the new policies, highlighting their potential to greatly benefit tax agents like himself.

“I am very happy about this because it is going to help us the agents so much,” Olweny said.

He, however, noted that the challenge will be convincing taxpayers to appreciate the changes.

“In all things, we represent them. We keep advising them, but we need their support,” he added.

Olweny pointed out that many businesses do not currently operate in a professional manner, and the new policies could help formalize Uganda’s business landscape.

He emphasized the importance of enforcement from URA’s side to ensure that businesses comply with the new regulations.

Sunday Yololimu, a representative from ACCO, also weighed in, raising concerns about the feasibility of the policy’s swift implementation.

“When you look at the policies being introduced, we have so many clients in Uganda. I do not know the practicability of this rollout given the large numbers of taxpayers we handle,” Yololimu said.

He also called for more time to allow tax and accounting firms to accredit and prepare for the changes.

“We need it not to be implemented in a hurry,” he urged, noting that many businesses have struggled to maintain proper books of accounts in the past. However, Yololimu acknowledged that the new policies could help bridge the existing compliance gap, leading to better record-keeping and more accurate tax reporting.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on whatsapp
WhatsApp
Share on linkedin
LinkedIn
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
On Key

Related Posts

URA gives hope to Nsambya babies

By Joshua Niyonshima Nsambya Babies’ home has witnessed a remarkable success story, thank to URA ‘s donation and its partners. Fifteen children have been reunited

0
Would love your thoughts, please comment.x
()
x