Government will not issue business licences to any individual or company that does not have a Tax Identification Number (TIN).
This is contained in the new Tax Procedures Code Amendments, which also include other offences listed relating to tax stamps, tax returns, and using false TIN, among others.
Ian Rumanyika the Assistant Commissioner of Public and Corporate Affairs at the Uganda Revenue Authority (URA) says the amendments will also include the one issued by foreign tax authorities with whom Uganda has a tax treaty or agreement for the exchange of information.
On Offences relating to tax stamps, Rumanyika said these would attract fines and or imprisonment, upon conviction.
For example, an offender who attempts to acquire or acquires or sells a tax stamp without goods shall be liable to a fine not exceeding Shs10M or imprisonment for a term not exceeding five years or both;
Also a person who acquires tax stamps with the Commissioner’s authority and affixes them on goods other than those approved by the Commissioner commits an offence and is liable to double the excise duty due on the goods or Shs10M whichever is higher, according to the amendments.
Tax returns: according to Rumanyika, the law has provided an extension of the period to amend tax returns that are not under investigation from the twelve-month period after the date of furnishing the return to a period of three years.
Objection: A taxpayer who is dissatisfied with an objection decision, he said may apply to the Commissioner to resolve the dispute using alternative dispute resolution procedures that may be prescribed by the Minister through regulations.
“This may present other avenues for taxpayers who would like to review tax decisions issued by URA without necessarily lodging an appeal to the Tax Appeals Tribunal,” he noted.
Failure to furnish a return by due date
According to the amendments, the government has increased the penalty for failure to furnish a tax return by the due date or within a further time allowed by the Commissioner to a fine not exceeding Shs1M and failure to furnish the return within the time prescribed by court to a fine not exceeding Shs2M on conviction.
Failure to maintain records: the penalty for knowingly and/or recklessly failing to maintain records as required under any tax law has been increased to a fine not exceeding Shs2M or imprisonment not exceeding six years or both on conviction.
Using a false TIN: Government, Rumanyika said has increased the penalty for knowingly and/or recklessly using a false TIN on a tax return or “any other document prescribed or used for purposes of a tax law to a fine not exceeding Shs3M or imprisonment not exceeding six years or both on conviction,”
False or Misleading statements: Government has increased the penalty for knowingly or recklessly making false or misleading statements or omitting from a statement to a tax officer, a matter or thing to a fine not exceeding two hundred currency points that is Shs. 4,000,000 or imprisonment not exceeding ten years or both on conviction.
Obstructing a tax officer: The government has increased the penalty for a person who obstructs a tax officer in the performance of duties under a tax law to a fine not exceeding Shs. 5,000,000 or imprisonment not exceeding ten years or both on conviction.
Aiding or encouraging a tax offence: Government has increased a penalty for a person who aides or encourages a tax offence to a fine not exceeding Shs5M or imprisonment not exceeding ten years on conviction.
“Where the offender is a Tax agent, the applicable fine is equal to double the tax evaded or not exceeding Shs5M whichever is higher, or imprisonment for a term not exceeding 5 years, or both,” Rumanyika said
Failure to apply for registration
Any person who fails to apply for registration, cancel a registration or notify the Commissioner of a change in registration or circumstances will be liable to; a fine not exceeding Shs3M or imprisonment not exceeding six years or both on conviction if the failure/act was done knowingly or recklessly.
Or to a fine not exceeding Shs1M or imprisonment not exceeding two years or both on conviction in any other case.
Offering a tax officer any payment or reward: Government has increased the penalty for a person who directly or indirectly offers or gives to a tax officer any payment or reward not being payment or reward which officer is lawfully entitled to receive to a fine not exceeding Shs3M or imprisonment not exceeding 6 years or both upon conviction.
Induce the officer to do any act: Government has increased the penalty for a person who proposes or enters into any agreement with a tax officer in order to induce the officer to do any act or thing, abstain from doing any act or thing, connive in the doing of any act or thing or conceal any act or thing whereby the tax revenue is or maybe defrauded or which is contrary to the provisions of a tax law or to the proper execution of the officer’s duty, to a fine not exceeding Shs3 million or imprisonment not exceeding 6 years or both upon conviction.
Impersonating as a tax officer: Government has increased the penalty for a person who impersonates a tax officer, to a fine not exceeding Shs2M or imprisonment not exceeding six years or both upon conviction.
Failure to apply for registration: A person who is not registered as a tax agent who acts as a tax agent commits an offence and is liable on conviction to fine not exceeding Shs480,000 or to imprisonment not exceeding one year or both.”