Tax authority defends inquiries into Ugandan diaspora property and income

KAMPALA, Uganda — The Uganda Revenue Authority is defending its recent efforts to monitor the assets of citizens living abroad, pushing back against claims that the agency is unfairly targeting the diaspora.

The defense follows a wave of criticism sparked by a commentary in The Observer titled “URA’s new tax zeal: Why Uganda must rethink its diaspora policy.” While critics argue that official inquiries into the financial status of those living overseas amount to persecution, tax officials maintain that asking for clarification on property and income is a standard administrative function.

The URA holds that property ownership in Uganda is an economic activity rather than just a symbolic tie to the country. Officials note that land and buildings can be rented, sold for profit, or used for business, making it necessary to determine if such assets are generating taxable income.

A key point in the agency’s stance is the distinction between remittances and taxes. While the diaspora contributes significantly to the economy through private transfers to families, these funds are not interchangeable with legal tax obligations. Revenue supporters argue that rental income and business profits earned within Uganda remain subject to national laws, regardless of where the owner resides.

The URA maintains that its compliance notices are not tax bills or accusations of evasion, but rather invitations for taxpayers to clarify their positions using available data.

Despite the firm stance on enforcement, there is an acknowledgment that the URA could improve its communication strategy. Critics suggest that initial outreach should be more educational and less alarming to avoid alienating a group that remains vital to Uganda’s development.

Suggested improvements include increased engagement through embassies and specialized diaspora desks to ensure the relationship between the state and its citizens abroad is built on mutual responsibility.