Navigating Tax Recovery: URA’s Guidelines and Enforcement Process
The Uganda Revenue Authority (URA) has faced scrutiny over various issues in recent times, notably the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) and the enforcement actions which some taxpayers claim are causing difficulties for them.
Traders have raised concerns about URA’s enforcement teams intercepting customers to demand fiscalized receipts and the closure of business premises in the name of tax collection.
Ibrahim Bbossa, URA’s Assistant Commissioner of Public and Corporate Affairs, sheds light on these matters. He explains that the enforcement actions stem from the significant levels of non-compliance with value-added tax (VAT).
“We intercept customers to check our systems and verify if the trader is VAT registered. If they are registered but non-compliant, enforcement actions are taken,” he clarifies.
Bbossa highlights that this measure is not intended to harass customers but is a means to ensure compliance, particularly in an informal economy where formal regulations can be challenging to enforce.
Regarding the closure of business premises, Bbossa stresses that this is a last resort following unsuccessful attempts at engagement.
“The standard procedure involves taxpayers filing returns and paying taxes. If a taxpayer fails to file a return, we issue an assessment. If there’s no response to the assessment, URA resorts to tax recovery measures,” he explains.
Before closing premises, URA employs several measures to recover tax liabilities. These include reminders, phone calls, visits to discuss payment plans, and the issuance of agency notices.
“It’s only after exhausting these steps that we consider full enforcement, such as closing premises or attaching property to recover taxes,” Bbossa adds.
URA urges taxpayers to utilize engagement channels to avoid enforcement actions that may disrupt their businesses.
“Our goal isn’t to close businesses but to ensure compliance and a level playing field in taxation,” Bbossa emphasizes.
Acknowledging potential misuse of enforcement laws by some staff, URA has enacted guidelines and established a staff compliance division to investigate misconduct. Staff found violating these guidelines face appropriate disciplinary actions.
