URA to shift tax collection accounts from Stanbic Bank amid Shs117b dispute

Kampala — The Uganda Revenue Authority (URA) has decided to transfer all its bank accounts from Stanbic Bank Uganda, citing concerns over the lender’s tax compliance and transparency, in a move that could reshape one of the government’s most significant banking relationships.

In a June 4 letter to Stanbic Bank Uganda Chief Executive Officer Mumba Kalifungwa, URA Commissioner General John Musinguzi said the tax authority would move all its accounts to other commercial banks after reviewing the bank’s tax compliance status and broader strategic considerations.

“Following a review of matters relating to the bank’s tax compliance status and in consideration of URA’s strategic priorities, we hereby notify you of URA’s decision to transfer all URA accounts currently held with your bank to other commercial banks,” the letter states.

URA said although Stanbic had been a longstanding partner in supporting revenue mobilisation, the relationship no longer met the standards expected of institutions entrusted with handling public funds.

“The accounts held have accorded the bank both direct and indirect financial and strategic benefits. Unfortunately, those benefits have not translated into commensurate value for URA, particularly in the area of tax compliance and transparency,” Mr Musinguzi wrote.

The tax authority said it intends to complete the transfer by the end of the year. It will renew the current tax collection agreement, which expires on June 30, for only six months to allow an orderly transition. Stanbic has also been directed to submit an account transition and closure plan within 14 days.

The decision comes as URA and Stanbic are locked in a Shs117.8 billion transfer-pricing dispute before the Tax Appeals Tribunal.

The case stems from URA’s assessment of the bank’s related-party transactions with companies within the Standard Bank Group. The tax authority argues that some intra-group charges may have reduced the bank’s taxable income in Uganda, while Stanbic maintains that the transactions complied with internationally accepted transfer-pricing principles and that the matter is a technical tax dispute rather than evidence of wrongdoing.

Stanbic has consistently defended its tax record.

Speaking earlier during the release of the bank’s half-year financial results, Chief Financial Officer Ronald Makata said the bank remained fully compliant with Uganda’s tax laws.

“We are very tax compliant. This is a normal process that organisations go through,” he said, adding that the dispute was following the prescribed legal process. Chief Executive Mumba Kalifungwa also said the bank operates a zero-tolerance policy towards non-compliance and had maintained a constructive relationship with URA.

The loss of URA’s accounts would be a significant commercial setback for Stanbic, which has for years been one of the tax authority’s principal banking partners.

The bank has played a central role in facilitating government tax collections, processing more than Shs10 trillion in tax payments in 2024 and handling Shs5.8 trillion during the first half of 2025 alone. Besides generating transaction income, the relationship has enhanced Stanbic’s standing among corporate clients seeking integrated tax payment services.

URA clarified that terminating the banking relationship will not affect the ongoing legal proceedings over the tax assessment.

“The expiry and non-renewal of the Agreement shall not affect any rights, obligations, claims, liabilities, audits, reviews, assessments, disputes, or proceedings that have arisen independently of the Agreement,” the authority said.

Analysts say the decision signals a tougher stance by URA, suggesting that unresolved tax disputes could increasingly influence government relationships with major corporate service providers, particularly multinational companies operating in Uganda.