Tax Procedures Code Act, 2014

Act 14 of 2014

The publication date of this work could not be ascertained. We used the date 31 December 2014 because the work was published during the course of the year 2014.

This is the latest version of this Act.

Tax Procedures Code Act, 2014

Citation

Act 14 of 2014

Date

Language

English

Type

Act

Publication

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Tax Procedures Code Act, 2014

Act 14 of 2014

Published on 31 December 2014
Assented to on 19 October 2014
Commenced
[This is the version of this document from 23 December 2024.]
[The publication date of this work could not be ascertained. We used the date 31 December 2014 because the work was published during the course of the year 2014.]
[Note: This legislation was revised and consolidated as at 31 December 2000 and 31 December 2023 by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]

[Amended by Tax Procedures Code (Amendment) Act, 2017 (Act 9 of 2017) on 1 July 2017]
[Amended by Tax Procedures Code (Amendment) Act, 2019 (Act 11 of 2019) on 1 July 2019]
[Amended by Tax Procedures Code (Amendment) Act, 2020 (Act 22 of 2020) on 1 April 2020]
[Amended by Tax Procedures Code (Amendment) Act, 2022 (Act 13 of 2022) on 1 July 2022]
[Amended by Law Revision (Miscellaneous Amendments) Act, 2023 (Act 17 of 2023) on 28 July 2023]
[Amended by Corrigendum (General Notice 2917 of 2024) on 23 December 2024]

An Act to provide for a Code to regulate the procedures for the administration of specified tax laws in Uganda and for related matters.[Act 14/2014; S.I. 21/2016; Act 9/2017; Act 1/2019; Act 11/2019; Act 22/2020; Act 11/2021; Act 13/2022; Act 17/2023; Act 22/2023]

Part I – Preliminary

1. Application of Act

This Act shall apply to every tax law specified in Schedule 2 to this Act.

2. Interpretation

In this Act, unless the context otherwise requires—“additional assessment” means an additional assessment made by the Commissioner General under section 25;“advance assessment” means an advance assessment made by the Commissioner General under section 24;“Authority” means the Uganda Revenue Authority established by the Uganda Revenue Authority Act;“business information return” means a return required to be furnished under section 147 of the Income Tax Act;“Commissioner General” means the Commissioner General appointed under the Uganda Revenue Authority Act;“Committee” means the Tax Agents Registration Committee established under section 6;“Competent Authority” means the department of transport regulation and safety in the Ministry responsible for transport referred to in the Traffic and Road Safety Act;“currency point” has the value assigned to it in Schedule 1 to this Act;“default assessment” means a default assessment made by the Commissioner General under section 23;“due date” means the date by which a tax obligation must be fulfilled under this Act;“listed institution” has a meaning assigned to it in the Income Tax Act;“Minister” means Minister responsible for finance;“objection decision” means a decision within the meaning of section 26;“occupier” in relation to premises or a place means the owner, manager, or any other person lawfully in the premises or place;“penal tax” means a tax imposed as a penalty for failure to perform an act required by or under a tax law;“person” has the same meaning as in the Income Tax Act;“record” includes—(a)a book of account, document, paper, register, bank statement, receipt, invoice, voucher, contract and agreement, or customs declaration; or(b)any information or data stored on a mechanical or electronic data storage device;“registration threshold” has the meaning in section 7(2) of the Value Added Tax Act;“self-assessment” means an assessment treated as having been made by a taxpayer under section 22;“self-assessment return” means a return made in accordance with sections 16 and 22;“statutory rate”, in relation to a period, means the Bank of Uganda discount rate at the commencement of that period;“tax” means a tax imposed under a tax law and includes withholding tax and provisional tax;“tax assessment” means a self-assessment, default assessment, advance assessment, or additional assessment;“tax agent” means a person registered as a tax agent under this Act;“tax decision” means—(a)a tax assessment; or(b)a decision on any matter left to the discretion, judgment direction, opinion, approval, satisfaction or determination of the Commissioner General other than—(i)a decision made in relation to a tax assessment;(ii)a decision to refuse, issue or revoke a practice note or an omission to issue or revoke a practice note;(iii)a decision or omission that affects a tax officer or employee or agent of the Authority;(iv)the compoundment of an offence under any tax law; or(v)a decision to refuse, issue or revoke a private ruling or an omission to issue or revoke a private ruling;“tax law” means a law specified in Schedule 2 to this Act;“tax obligation” means any duty expected of a taxpayer under a tax law and includes registration, filing and payment of a tax liability;“tax officer” means the Commissioner General and an officer of the Authority appointed under the Uganda Revenue Authority Act;“taxpayer” means a person liable for tax under a tax law and includes—(a)for the income tax, a person who has zero chargeable income or an assessed loss for a year of income; or(b)for the value added tax, a taxable person whose total input tax credits for a tax period are equal to or exceed the person’s total output tax for the period;“tax period” means—(a)in the case of the income tax—(i)for the purposes of withholding tax, the period to which the withholding relates;(ii)for the purposes of provisional tax, the period to which the provisional tax relates; or(iii)for any other purposes, the year of income;(b)in the case of value added tax, the tax period under the Value Added Tax Act; or(c)in any other case, the period for which the tax is reported;“tax representative” means—(a)for an individual under a legal disability, the guardian or manager who receives or is entitled to receive income on behalf, or for the benefit of that natural person;(b)for a company, the chief executive officer, managing director, or any director of the company;(c)for a partnership, a partner in the partnership;(d)in the case of a trust, a trustee of the trust;(e)in the case of the Government or local government in Uganda, the individual responsible for accounting for the receipt or payment of moneys or funds on behalf of the Government or local government;(f)in the case of a foreign government, political subdivision of a foreign government, or a listed institution, any natural person responsible for accounting for the receipt or payment of moneys or funds in Uganda on behalf of the government, political subdivision of the government, or listed institution; and(g)in the case of a non-resident person, the individual controlling the affairs of the person in Uganda, including a manager of a business of that person or any representative appointed by the person in Uganda;“tax return” means a return or other document listed in Schedule 3 to this Act;“transaction information” means information relating to a transaction in respect of which a record is made;“TIN” means the Tax Identification Number issued to a registered taxpayer;“Tribunal” means a Tax Appeals Tribunal established by the Tax Appeals Tribunals Act;“unpaid tax” means tax that has not been paid by the due date, but does not include tax that is the subject of an objection and that is not required to be paid until the objection is finally decided;“VAT” means value added tax;“withholding tax” means any tax that a withholding agent is required to deduct from a payment to a payee.

Part II – Registration of taxpayers

3. Registration

(1)A person liable to pay tax under a tax law shall apply to the Commissioner General for registration in the prescribed manner.

(2)The application shall be accompanied by the prescribed evidence of the identity of the person.

(3)The Commissioner General shall register a person who has applied for registration if satisfied that the person meets the requirements for registration.

(4)Where the Commissioner General refuses to register a person who has applied for registration, the Commissioner General shall serve that person with written notice of the refusal within fourteen days after the refusal, stating the reasons for refusal.

(5)Where a person applies for registration as required under a tax law, the Commissioner General may use the information provided for the registration for the purposes of this Act without requiring the person to furnish the same particulars under this Act.

(6)Notwithstanding subsection (5), the Commissioner General may request a person to provide any further information necessary to complete the registration of the person under this Act.

4. Tax Identification Number

(1)Upon registration, the Commissioner General shall issue to every person registered a TIN.

(2)The Commissioner General shall issue one TIN to each person registered.

(3)The TIN issued by the Commissioner General shall be used for tax purposes under all tax laws.

(4)A person shall state that person’s TIN on any return, notice, communication, or other document furnished, lodged, or used for the purposes of a tax law.

(5)Subject to subsection (6), a TIN is personal to the person to whom it has been issued and shall not be used by another person.

(6)The TIN of a registered taxpayer may be used by a registered tax agent if—

(a)the registered taxpayer has given written permission to the registered tax agent to use the TIN on their behalf; and

(b)the registered tax agent uses the TIN only in respect of the tax affairs of the taxpayer.

(7)The Commissioner General shall, by notice in writing, cancel a TIN if satisfied that—

(a)the person is de-registered for the purposes of all tax laws;

(b)the TIN has been issued to the person under an identity that is not that person’s true identity; or

(c)the person has been previously issued with the TIN that is still in force.

(8)The Commissioner General may, at any time, by notice in writing, cancel the TIN issued to a person and issue the person with a new TIN.

(9)A local authority, Government institution or regulatory body shall not issue a licence or any form of authorisation necessary for purposes of conducting any business in Uganda to any person who does not have a TIN including a tax identification number issued by foreign tax authorities with whom Uganda has a tax treaty or agreement for the exchange of information.

(10)A local authority, Government institution or regulatory body shall not register an instrument that is required to pay stamp duty under the Stamps Duty Act, unless the person lodging the instrument for registration has a TIN.

5. De-registration

(1)Aperson who is no longer required to be registered for the purposes of a tax law may, in the prescribed manner, apply to the Commissioner General to be de-registered.

(2)The Commissioner General shall, by notice in writing, de-register a person if—

(a)that person has applied for de-registration and the Commissioner General is satisfied that the person is no longer required to be registered; or

(b)that person has not applied for de-registration but the Commissioner General is satisfied that the person is eligible for de-registration.

(3)De-registration takes effect from the date specified in the notice of de-registration.

(4)Aperson who is de-registered shall comply with any requirements relating to de-registration as specified under the tax law to which the registration relates.

Part III – Tax agents and tax representatives

Registration of tax agents

6. Tax Agents Registration Committee

(1)There shall be a Tax Agents Registration Committee to handle registration, renewal of registrations and cancellation of tax agent’s registration.

(2)The Committee shall comprise of the following members—

(a)the Commissioner General, or his or her representative for purposes of this Act, who shall be the chairperson;

(b)one representative from the accountancy profession nominated by the Institute of Certified Public Accountants of Uganda;

(c)a representative from the legal profession nominated by the Uganda Law Society; and

(d)two members from the private sector with expertise or relevant experience in economics, finance or taxation who shall be appointed by the Board of the Authority.

(3)The Commissioner General shall receive and maintain a register of all registered tax agents.

(4)In exercise of its functions under this Act, the Committee shall make rules to govern its own procedure.

7. Tax agents

(1)An individual, partnership, or company may apply to the Committee for registration as a tax agent.

(2)An application for registration as a tax agent under subsection (1) shall be in the prescribed form and shall be accompanied by the prescribed fee.

(3)For purposes of this Act, a tax agent is a person engaged—

(a)in the preparation, certification, and filing tax returns, information returns or other statements or reports required by the Authority;

(b)in the preparation of requests for ruling, petitions for reinvestigation, protests, objections, requests for refund or tax certificates, compromise settlements or abatement of tax liabilities or both compromise settlements and abatement of tax liabilities and other official papers and correspondences with the Authority; or

(c)in meetings and hearings on behalf of the taxpayer in all matters relating to the rights, privileges or liabilities of the taxpayer under the laws or regulations administered by the Authority.

8. Registration of tax agents

(1)In the case of an application by a natural person, the Committee shall register the applicant if satisfied that the applicant is a fit and proper person to prepare tax returns and transact business with the Committee under the tax laws on behalf of taxpayers.

(2)In the case of an application by a partnership or a company, the Committee shall register the applicant if satisfied that—

(a)the partner or employee specified in the application as the nominee of the partnership or company respectively is a fit and proper person to prepare tax returns and transact business with the Commissioner General under a tax law on behalf of a taxpayer; and

(b)a partner in the partnership or a director, manager or other executive officer of the company is of high integrity and good character.

(3)An individual applying for registration as a tax agent, or in the case of an application by a partnership or company, the partner or employee specified as the nominee of the partnership or company respectively, shall meet the following requirements—

(a)have been awarded a degree or a post-graduate award from an approved tertiary institution in the discipline relevant for the provision of tax agent services;

(b)have successfully completed a course in taxation recognised by the tax registration committee; or

(c)was engaged in the equivalent of twenty-four months of full time tax practice within a period of five years preceding the 1st day of July, 2016.

(4)The registration of a tax agent shall remain in force from the date of issue of the certificate of registration to the 31st day of December of the year of issue.

(5)The Commissioner General shall notify the applicant of the decision on the application.

(6)A person who is not registered as a tax agent under this section shall not act as a tax agent.

(7)This section does not apply to an advocate acting as an advocate to a taxpayer under section 7(3)(b) and (c).

9. Renewal of registration

(1)A tax agent may apply to the Committee for the renewal of the tax agent’s registration.

(2)An application under subsection (1) shall be in the prescribed form and shall be accompanied by the prescribed fee.

(3)The application shall be submitted to the Committee within twenty-one days before the date of expiry of the registration of the tax agent or a later date allowed by the Committee.

(4)The Committee shall renew the registration of a tax agent who has applied under subsection (1) if the tax agent still meets the requirements for registration.

(5)The Committee shall in writing notify the applicant of the decision on the application to renew registration.

10. Registration of additional or substituted tax agents

(1)A partnership or company registered as a tax agent may apply to the Committee, in the prescribed form and accompanied by the prescribed fee, to register a partner of the partnership or an employee of the company as an additional or substituted tax agent.

(2)The Committee shall register the person nominated under subsection (1) if satisfied that the person is a fit and proper person to prepare tax returns and transact business with the Committee under a tax law on behalf of a taxpayer.

(3)The Committee shall in writing notify an applicant under this section of the decision of the Committee on the application.

11. Notice of change in registered particulars

(1)A partnership that is registered as a tax agent shall notify the Committee, in writing, if—

(a)there is a change in the composition of the partnership, within seven days after the change in composition; or

(b)the partnership is going to be dissolved, within seven days before the dissolution of the partnership.

(2)A company that is registered as a tax agent shall notify the Committee, in writing, if—

(a)a registered nominee ceases to be an employee of the company or a person becomes a director, manager, or other executive officer of the company, within seven days after the employee ceases to be employed, or the person becomes a director, manager or other executive officer; or

(b)the company is going into liquidation, within seven days before the company goes into liquidation.

12. Cancellation of registration of tax agent

(1)A tax agent that ceases to carry on business as a tax agent shall notify the Committee, in writing, within seven days after ceasing to carry on business as a tax agent.

(2)A tax agent may apply to the Committee, in the prescribed form to cancel the registration of the agent where the agent no longer wishes to be registered as a tax agent.

(3)The Committee may cancel the registration of a tax agent if the Committee is satisfied that—

(a)in the case of an individual, the person is no longer a fit and proper person to prepare tax returns and transact business with the Committee under the tax laws on behalf of a taxpayer;

(b)in the case of a partnership, the additional or nominated partner has ceased to be a partner in the partnership or the partnership has applied to the Committee to cancel the registration of the partner;

(c)in the case of a company, the person nominated has ceased to be employed by the company or the company has applied to the Committee to cancel the registration of the employee;

(d)a tax return prepared and delivered by the tax agent is false in any material particular, unless the tax agent establishes to the satisfaction of the Committee that it was not due to any wilful or negligent conduct of the tax agent;

(e)the tax agent has ceased to meet the requirements for registration as a tax agent; or

(f)the tax agent has ceased to carry on business as a tax agent.

(4)The Committee shall give notice, in writing, to a tax agent of a decision to cancel the registration of the tax agent or a nominee of the tax agent.

(5)The cancellation shall take effect from the date specified in the notice.

Tax representatives

13. Liabilities and obligations of tax representative

(1)A tax representative is responsible for performing any duty or obligation imposed by a tax law on a taxpayer, including the submission of tax returns and payment of tax.

(2)If there are two or more tax representatives of a taxpayer, the obligations referred to in this section apply jointly and severally to the tax representatives but may be discharged by any of them.

(3)A tax representative making a payment of tax on behalf of a taxpayer is to be treated as acting under the authority of the taxpayer.

(4)A tax that is payable by the tax representative of a tax payer by virtue of subsection (1) is recoverable from the tax representative only to the extent of the assets of the taxpayer that are in the possession or under the control of the tax representative.

(5)Subject to subsection (6), a tax representative is personally liable for the payment of any tax due by the tax representative in that capacity if, while the amount remains unpaid, the tax representative—

(a)alienates, charges, or disposes of any money received or accrued in respect of which the tax is payable; or

(b)disposes of or parts with any money or funds belonging to the taxpayer that are in the possession of the tax representative or which come to the tax representative after the tax is payable,

if tax could legally have been paid from or out of the money or funds.

(6)A tax representative is not personally liable for tax if—

(a)the money was paid by the tax representative on behalf of a taxpayer and the amount paid has priority, in law or equity, over the tax payable by the taxpayer; or

(b)at the time the money was paid, the tax representative had no knowledge, and could not reasonably be expected to know, of the taxpayer’s tax or duty liability.

(7)An amount that a tax representative is personally liable for under subsection (5) shall be collected and recovered in accordance with this Act.

(8)Nothing in this section relieves a taxpayer from performing any obligation imposed on the taxpayer under a tax law that the tax representative of the taxpayer has failed to perform.

(9)A reference in this section to a tax liability includes any interest payable in respect of the liability.

14. Recovery of tax from successor and duty to notify discontinuance of business

(1)Where a person carrying on any business liable to duty, levy or tax has been succeeded by another person, and where the duty, levy or tax due and payable by the person succeeded cannot be recovered from that person, it shall be payable by and recoverable from the person succeeding that person.

(2)If the person succeeding fails to pay the duty, levy or tax on the date fixed by the Commissioner General, then the provisions of the law relating to collection and recovery of duty, levy or tax shall apply to the collection and recovery of the amount due as if it were the duty, levy or tax due and payable by the person succeeding.

(3)Any person intending to discontinue any business liable to duty or tax shall give a notice of the intention to discontinue business, to the Commissioner General thirty days before the date of discontinuance, and where the person fails to give the notice required by this section, the Commissioner General may direct that a sum not exceeding ten currency points be recovered from that person by way of penalty.

Part IV – Record keeping

15. Accounts and records

(1)Subject to subsections (2) and (4), every taxpayer shall, for the purposes of a tax obligation—

(a)maintain, in the English language, records including in electronic format, as may be required to determine the taxpayer’s tax liability under a tax law;

(b)maintain the record so as to enable the taxpayer's tax liability under the tax law to be readily ascertained; and

(c)retain the record for five years after the end of the tax period to which it relates or other period as specified in the tax law.

(2)Where, at the end of the time specified in subsection (1)(c), a record is necessary for a proceeding commenced before the end of the five-year period, the person shall retain the document until all proceedings have been completed.

(3)A mode of record keeping shall contain sufficient transaction information and, in the case of a record in electronic format shall be capable of being retrieved and converted to a standard record format equivalent to that contained in an acceptable paper record.

(4)The Commissioner General may, on the application of a taxpayer who wishes to keep records in a language other than English or in a currency other than Uganda Shillings, allow the taxpayer to keep records in a different language or currency.

(5)An application under subsection (4) shall clearly state the reasons of the applicant for wishing to keep records in a different language or currency.

(6)Where a record referred to in subsection (1) is not in English, the Commissioner General may, by notice in writing, require the person keeping the record to provide, at the person’s expense, a translation into English by a translator approved by the Commissioner General.

(7)A taxpayer granted permission to keep records in a language other than English shall file a tax return or provide other correspondence with the Commissioner General in English.

Part V – Tax returns

16. Furnishing of tax returns

(1)A person required to furnish a tax return under a tax law shall submit the return in the prescribed form and in the manner determined by the Commissioner General.

(2)Where a person does not furnish a tax return under subsection (1), the Commissioner General may at the person’s cost, by notice in writing, appoint another person to prepare and furnish the return on behalf of that person.

(3)A return furnished under subsection (2) shall be treated, for all the purposes of the tax law under which the return is required to be furnished, to be the return of the person required to furnish the return.

(4)Where the Commissioner General is not satisfied with a tax return furnished by a person, other than a self-assessment return, the Commissioner General may, by notice in writing, require the person who has furnished the return to provide a fuller or further tax return.

(5)A taxpayer with an annual turnover of the amount prescribed in Schedule 4 to this Act shall furnish with the taxpayer’s return of income audited financial statements prepared by an accountant registered by the Institute of Certified Public Accountants of Uganda.

(6)A tax return purporting to be made by or on behalf of a person is treated as having been made by the person or with the authority of the person unless the contrary is proved.

(7)The following are tax returns for the purposes of this Act—

(a)a return of income;

(b)a return of rental income;

(c)a provisional tax estimate;

(d)a business information return;

(e)a return required to be furnished under the Value Added Tax Act;

(f)an excise duty return;

(g)any other return required to be furnished under a tax law; and

(h)any form required to be furnished under a tax law containing information relating to an assessment of tax.

(8)For purposes of subsection (7), the applicable time frame for lodging a return shall be as follows—

(a)in the case of a return of income, every taxpayer shall furnish a return of income for each year of income of the taxpayer not later than six months after the end of that year;

(b)in the case of a return of rental income, every taxpayer shall furnish a return of rental income for each year of income of the taxpayer not later than six months after the end of that year;

(c)a provisional taxpayer’s estimate shall be in the form prescribed by the Commissioner General and shall be furnished to the Commissioner General by the due date for the payment of the first instalment of provisional tax for the year of income;

(d)in the case of a business information return, a person who is required to furnish a business information return with the Commissioner General shall do so within sixty days after the end of the year of income in which the payment was made;

(e)in the case of the Value Added Tax Act, a taxable person shall lodge a value added tax return with the Commissioner General for each tax period within fifteen days after the end of the tax period;

(f)in the case of an excise duty return, a person who is required to furnish an excise duty return with the Commissioner General shall do so by the fifteenth day of the following month;

(g)in the case of the Lotteries and Gaming Act a licensed person shall furnish returns with the Commissioner General as follows—

(i)a weekly return, by Wednesday of the following week; and

(ii)a monthly return, by the fifteenth day of the following month;

(h)in case of any other return required to be furnished under a tax law, a person is required to furnish such return with the Commissioner General in the period specified under the tax law to which the return relates;

(i)in case of any form required to be furnished under a tax law containing information relating to an assessment of tax, a person is required to furnish such a form with the Commissioner General in the period specified by the Commissioner General.

17. Certification of tax return by tax agent

(1)A tax agent who prepares or assists in the preparation of a tax return of a taxpayer shall provide the taxpayer with a signed certificate in the prescribed form—

(a)stating the sources available to the tax agent for the preparation of the return; and

(b)certifying that the tax agent has examined the documents of the taxpayer and that, to the best of the tax agent’s knowledge, the return together with any supporting documentation, reflects the correct data and transactions to which it relates.

(2)A tax agent who does not provide the certificate referred to in subsection (1) shall in writing specify to the taxpayer the reasons for not providing the certificate.

(3)A tax agent who prepares or assists in the preparation of a tax return of a taxpayer shall make a declaration in the taxpayer’s return stating whether a certificate under subsection (1) or a statement under subsection (2) has been provided to the taxpayer.

(4)A tax agent shall when required to do so by notice in writing from the Commissioner General, produce to the Commissioner General a copy of the certificate under subsection (1) or the statement provided to the taxpayer under subsection (2).

(5)A tax agent shall keep copies of certificates provided to taxpayers under subsection (1) and statements provided to taxpayers under subsection (2) for five years from the date that the tax return to which the certificate or statement relates is furnished.

18. Power of Commissioner General to require tax returns in certain cases

(1)This section applies where, during a tax period—

(a)a taxpayer has died;

(b)a taxpayer becomes bankrupt, wound up, or goes into liquidation;

(c)a taxpayer is about to leave Uganda permanently; or

(d)the Commissioner General otherwise considers it appropriate.

(2)The Commissioner General may, by notice in writing and at any time during the tax period, require—

(a)the taxpayer or the taxpayer’s representative to furnish a tax return for the tax period by the date specified in the notice being a date that may be before the date that the return for the tax period would otherwise be due; and

(b)the taxpayer or taxpayer’s representative to pay any tax due under the return.

(3)Where a taxpayer is subject to more than one tax, this section applies to each tax separately.

19. Extension of time to furnish tax return

(1)A person required to furnish a tax return may apply in writing to the Commissioner General for an extension of time to furnish the return.

(2)An application under subsection (1) shall be made by the date on which the return is required to be furnished or made.

(3)Where an application has been made under subsection (1) and the Commissioner General is satisfied that the person is unable to furnish the tax return by the due date because of any reasonable cause, the Commissioner General may, by notice in writing, grant the person an extension of time to furnish the return.

(4)The extension of time granted under subsection (3) shall not exceed an aggregate period of ninety days.

(5)An extension of time granted under this section does not change the date for payment of the tax due as specified in the tax law under which the tax return is required to be furnished and interest remains payable on the unpaid tax from the date the tax was originally due.

(6)The Commissioner General may allow an application for the extension of time after the expiry of the due date if the Commissioner General is satisfied that the failure to furnish a tax return was due to exceptional circumstances.

Part VI – Tax stamps

20. Tax stamps

(1)A person dealing in goods, whether locally manufactured or imported, shall affix a tax stamp on any goods locally manufactured or imported as may be prescribed by the Minister under subsection (3).

(2)The Commissioner General shall prescribe the manner in which a tax stamp is to be affixed to goods.

(3)The Minister shall, by statutory instrument, prescribe the locally manufactured or imported goods on which tax stamps shall be affixed.

21. Penal tax relating to tax stamps

(1)A taxpayer who fails to affix a tax stamp on goods prescribed under section 20(3) or to activate tax stamps is liable to pay a penal tax equivalent to double the tax due on the goods or two thousand five hundred currency points, whichever is higher.

(2)Any person who prints over or defaces a tax stamp affixed on goods prescribed under section 20(3) is liable to pay a penal tax equivalent to double the tax due on the goods or one thousand currency points, whichever is higher.

(3)Any person found in possession of goods prescribed under section 20(3), on which a tax stamp is not affixed, is liable to pay a penal tax equivalent to double the tax due on the goods or two thousand five hundred currency points, whichever is higher.

(4)Any person who attempts to acquire or who acquires or sells a tax stamp without the authority of the Commissioner General commits an offence and is liable, on conviction, to a penalty equivalent to double the tax due on the goods or five hundred currency points, whichever is higher.

(5)Where the offender under subsection (4) attempts to acquire or acquires or sells a tax stamp without goods, the offender is liable, on conviction, to a fine not exceeding five hundred currency points or to imprisonment for a term not exceeding five years, or both.

(6)Any person, who acquires tax stamps with the authority of the Commissioner General and affixes the tax stamps on goods other than the goods approved by the Commissioner General, commits an offence is liable, on conviction, to double the tax due on the goods or five hundred currency points, whichever is higher.

(7)Any person who makes an unauthorised interference to or tampers with a digital tax stamps machine commits an offence and is liable, on conviction, to pay the amount of tax lost as a result of the tampering and, a fine not exceeding five thousand currency points, or to imprisonment for a term not exceeding ten years, or both.

(8)For purposes of this section, “tax” means tax imposed under the Excise Duty Act.

Part VII – Tax assessments

22. Self-assessment

(1)A taxpayer who has submitted a self-assessment return in the prescribed form for a tax period is treated as having made an assessment of the amount of tax payable, including a nil amount, for that period being the amount set out in the return.

(2)Where a taxpayer liable to income tax has submitted a self-assessment return in the prescribed form for a year of income and the taxpayer has an assessed loss for the year, the taxpayer is treated, as having made an assessment of the amount of the loss for that year being that amount set out in the return.

(3)Where a taxable person has submitted a self-assessment return in the prescribed form for a tax period and the taxable person has an excess input tax credit carried forward for that tax period, the taxable person is treated, as having made an assessment of the amount of the excess input tax credit carried forward for that tax period being that amount set out in the return.

(4)Where a taxpayer electronically completes and submits a prescribed form for a tax return that tax return is a self-assessment return despite the form having pre-filled information provided by the Commissioner General.

(5)The following are self-assessment returns for the purposes of this Act—

(a)a return of income;

(b)a return of rental income;

(c)a return required to be furnished under the Value Added Tax Act;

(d)a return required to be furnished under the Excise Duty Act; and

(e)a return specified as a self-assessment return under a tax law.

23. Default assessment

(1)Where a taxpayer fails to furnish a self-assessment return for a tax period as required under a tax law, the Commissioner General may, at any time, make an assessment as follows—

(a)in the case of an assessed loss under the Income Tax Act, the amount of the assessed loss of the taxpayer for the period;

(b)in the case of an excess input tax credit under the Value Added Tax Act, the amount of the excess input tax, credit of the taxpayer for the period; or

(c)in any other case, the tax payable by the taxpayer for the tax period.

(2)The Commissioner General shall serve a taxpayer assessed under subsection (1) with notice, in writing, of the assessment specifying—

(a)the amount of tax assessed, assessed loss, or excess input tax credit, as the case may be;

(b)the amount of penal tax and interest, if any, payable in respect of the amount assessed;

(c)the tax period to which the assessment relates;

(d)the due date for payment of the tax, penal tax and interest; and

(e)the manner of objecting to the assessment.

(3)The service of a notice of an assessment under this section does not change the due date for payment of the tax payable under the assessment as determined under the tax law imposing the tax, and penal tax and interest remain payable based on the original due date.

24. Advance assessment

(1)This section applies to a taxpayer specified in section 18 and where the Commissioner General is satisfied that there is a risk that a taxpayer may delay, obstruct, prevent, or render ineffective payment or collection of tax that has not yet become due.

(2)Subject to subsection (3), the Commissioner General may make an assessment for a tax period in relation to a taxpayer to whom section 18 applies—

(a)in the case of an assessed loss under the Income Tax Act, of the amount of the assessed loss of the taxpayer for the period;

(b)in the case of an excess input tax credit under the Value Added Tax Act, of the amount of the excess input tax credit of the taxpayer for the period; or

(c)in any other case, of the tax payable by the taxpayer for the period.

(3)Subsection (2) applies only if the taxpayer has not submitted a return as required by section 18.

(4)An assessment made under subsection (2)—

(a)may be made before the date on which the taxpayer’s tax return for the period is due; and

(b)shall be made in accordance with the tax law in force at the date the assessment was made.

(5)The Commissioner General shall serve a taxpayer assessed under subsection (2) with notice, in writing, of the assessment specifying—

(a)the amount of tax assessed;

(b)the amount of penal tax and interest, if any, payable in respect of the tax assessed;

(c)the tax period to which the assessment relates;

(d)the due date for payment of the tax, penal tax and interest; and

(e)the manner of objecting to the assessment.

(6)An assessment made under subsection (2) may be amended under section 25 so that the taxpayer is assessed in respect of the whole of the tax period to which the assessment relates.

(7)Nothing in this section relieves a taxpayer from being required to furnish the tax return to which the assessment served under this section relates.

25. Additional assessment

(1)The Commissioner General may make an additional assessment amending a tax assessment made for a tax period to ensure that—

(a)for an assessed loss under the Income Tax Act, the taxpayer is assessed in respect of the correct amount of the assessed loss for the period;

(b)for an excess input tax credit under the Value Added Tax Act, the taxpayer is assessed in respect of the correct amount of the excess input tax credit for the period; or

(c)in any other case, the taxpayer is liable for the correct amount of tax payable in respect of the period.

(2)An additional assessment under subsection (1) may be made—

(a)at any time, if fraud or any gross or wilful neglect has been committed by, or on behalf of the taxpayer, or new information has been discovered in relation to the tax payable by the taxpayer for a tax period;

(b)in the case of an additional assessment, within three years from the date of service of the notice of the additional assessment; or

(c)in any other case, within three years after the date—

(i)the taxpayer furnished the self-assessment return to which the original assessment relates; or

(ii)the Commissioner General served notice of the original assessment on the taxpayer.

(3)Subject to subsection (1), a taxpayer who has furnished a self-assessment return, other than a taxpayer whose return is being investigated may, upon discovering an error within three years after the date of furnishing the return, apply to the Commissioner General for leave to make an additional assessment.

(4)The Commissioner General shall within thirty days after receiving the application, in writing notify the taxpayer of the decision.

(5)For the purposes of subsection (2)(b), the additional assessment shall be limited to amending the alterations and additions made in the additional assessment.

(6)Where the Commissioner General has made an additional assessment under this section, the Commissioner General shall serve the taxpayer with notice, in writing, of the additional assessment specifying—

(a)the amount assessed as tax, assessed loss, or excess input tax credit, as the case may be;

(b)the amount of penal tax and interest, if any, payable in respect of the amount assessed as a result of subsection (2)(a);

(c)the tax period to which the assessment relates;

(d)the date for payment of any tax, penal tax and interest being a date that is not less than forty-five days from the date of service of the notice; and

(e)the manner of objecting to the assessment.

(7)The service of a notice of an additional assessment under this section does not change the due date for payment of the tax payable under the assessment as determined under the tax law imposing the tax, and penal tax and interest shall remain payable based on the original due date.

(8)Subsection (6) shall not apply where the circumstances leading to the additional assessment are occasioned by an error on the part the Commissioner General.

Part VIII – Objections and appeals

26. Objection to tax decision

(1)A person who is dissatisfied with a tax decision may lodge an objection with the Commissioner General within forty-five days after receiving notice of the tax decision.

(2)An objection shall be in the prescribed form and shall state the grounds upon which it is made and contain sufficient evidence to support the objection.

(3)Where a taxpayer lodges an objection to a tax assessment for a tax period, the Commissioner General may consider the objection if the taxpayer—

(a)has furnished the return to which the assessment relates in the case of a default or advance assessment;

(b)has paid the tax due under the return to which the assessment relates together with any penalty or interest due.

(4)A person may apply, in writing, to the Commissioner General for an extension of time to lodge an objection and the Commissioner General may, if satisfied with the grounds upon which the application is made, grant an extension for such period as the Commissioner General may determine.

(5)The Commissioner General may make a decision on an objection—

(a)to a tax assessment, affirming, reducing, increasing, or otherwise varying the assessment to which the objection relates; or

(b)to any other tax decision, affirming, varying, or setting aside the decision.

(6)The Commissioner General shall serve notice of an objection decision on the person objecting within ninety days from the date of receipt of the objection.

(7)Subject to subsection (9), where an objection decision has not been served within the time specified under subsection (6), the person objecting may, by notice in writing to the Commissioner General, elect to treat the Commissioner General as having made a decision to allow the objection.

(8)Where a person makes an election under subsection (7), the person is treated as having been served with notice of the objection decision on the date the person’s election is lodged with the Commissioner General.

(9)The time limit for making an objection decision is waived where a review of the records of the taxpayer is necessary for settlement of the objection and the taxpayer is notified.

(10)Where the Commissioner General reviews the records of the taxpayer under subsection (9), the Commissioner General shall within the time specified in subsection (6) notify the taxpayer of the review.

(11)A taxpayer who is dissatisfied with a decision of the Commissioner General may apply to the Commissioner General to resolve the dispute using alternative dispute resolution procedure, as may be prescribed.

(12)For the purposes of subsection (11), the Minister may make regulations to provide for alternative dispute resolution for tax purposes.

27. Review of objection decision

(1)A person dissatisfied with an objection decision may, within thirty days after being served with a notice of the objection decision, lodge an application with the Tribunal for review of the objection decision.

(2)A person dissatisfied with a decision of the Tribunal may, within thirty days after being served with a notice of the decision, lodge an application with the High Court for review of the decision.

28. Burden of proof

In any proceeding under this Act—

(a)for a tax assessment, the burden is on the taxpayer to prove that the assessment is incorrect; or

(b)for any other tax decision, the burden is on the person objecting to the decision to prove that the decision should not have been made or should have been made differently.

Part IX – Collection and recovery of tax

Tax Collection

29. Payment of tax

(1)The tax owing by a taxpayer for a tax period is payable on the date specified in the tax law under which the tax is payable.

(2)An amount that is treated as tax for the purposes of this Act shall be collected by the Commissioner General serving a notice of demand on the person liable for the amount.

(3)The amount is payable on the date specified in the notice being a date that is not less than twenty-eight days from the date of service of the notice.

(4)The Commissioner General may waive the amount or accept a lesser amount than is required to be paid under section 26(3) where an objection has reasonably been made to a tax assessment.

30. Tax liability of statutory corporations

(1)No statutory corporation shall gain exemption from any tax imposed generally by any written law, whether the tax is expressed as a tax, levy, duty or otherwise unless the corporation is expressed in or under the law as exempt from the tax or entitled to such remission as may be granted under the law; except that in respect of income tax any exemption purported to have been granted otherwise than in accordance with this section shall be deemed to be of no effect.

(2)Any provision of any written law which is inconsistent with subsection (1) shall be deemed to be amended to the extent of the inconsistency.

(3)In granting an exemption or remission under subsection (1), the authority empowered in that behalf shall distinguish between statutory corporations which are business enterprises and which shall, as far as possible, be treated as private persons, and statutory corporations which provide utility services and which shall in principle be exempt or entitled to remission.

31. Extension of time to pay tax

(1)A taxpayer may apply, in writing, to the Commissioner General for an extension of time within which to pay tax that is due.

(2)An application for an extension of time to pay tax shall be made by the due date for payment of the tax to which the application refers.

(3)Where an application has been made under this section, the Commissioner General may, having regard to the circumstances of the case and by notice in writing—

(a)grant the taxpayer an extension of time for payment of the tax; or

(b)require the taxpayer to pay the tax in such instalments as the Commissioner General may determine.

(4)Where tax is permitted to be paid by instalments and there is default in payment of any instalment, the whole balance of the outstanding tax becomes payable immediately.

(5)Notwithstanding the grant of an extension of time or permission to pay tax by instalments, the liability for interest arises from the original due date for payment of the tax.

32. Tax as debt due to Government of Uganda

(1)The tax payable under a tax law is a debt due to the Government of Uganda and is payable to the Commissioner General in the manner and at the place determined by the Commissioner General.

(2)The Commissioner General may sue for and recover unpaid tax in a court of competent jurisdiction in Uganda.

(3)In any suit under this section, the production of a certificate signed by the Commissioner General stating the name and address of the taxpayer and the amount of tax payable is conclusive evidence of the amount of tax payable by the taxpayer unless the contrary is proved.

Enforced tax collection

33. Collection of tax from persons leaving Uganda permanently

(1)If the Commissioner General has reasonable grounds to believe that a taxpayer may leave Uganda permanently without paying tax that is due, the Commissioner General may issue a certificate containing the particulars of the tax payable to the officer responsible for immigration control and request the Director for immigration to prevent that person from leaving Uganda until that person—

(a)makes payment of the tax in full; or

(b)executes a financial bond guaranteeing payment of the tax.

(2)A copy of a certificate issued under subsection (1) shall be served on the taxpayer named in the certificate if it is practicable to do so.

(3)The payment of the tax specified in the certificate to a customs or immigration officer or the production of a certificate signed by the Commissioner General stating that the tax has been paid or secured is sufficient authority for allowing the taxpayer to leave Uganda.

34. Recovery of tax through persons owing money to taxpayer

(1)This section applies where a person is, or will become liable to pay tax and—

(a)the tax is unpaid; or

(b)the Commissioner General has reasonable grounds to believe that the taxpayer will not pay the tax by the due date for payment.

(2)Where this section applies to a taxpayer, the Commissioner General may, by notice in writing, require a person who—

(a)owes or may subsequently owe money to the taxpayer;

(b)holds or may subsequently hold money, for or on account of, the taxpayer;

(c)holds money on account of some other person for payment to the taxpayer; or

(d)has authority from some other person to pay money to the taxpayer,

to pay the amount specified in the notice to the Commissioner General, being an amount that shall not exceed the amount of the unpaid tax or the amount that the Commissioner General believes will not be paid by the taxpayer by the due date.

(3)A person to whom a notice is served under subsection (2) shall pay the amount specified in the notice by the date specified in the notice, being a date that is not before the date that the amount owed by the payer to the taxpayer becomes due to the taxpayer or held on behalf of the taxpayer.

(4)If the notice served under subsection (2) requires a person to deduct amounts from salary, wages, or other similar remuneration payable at fixed intervals to the taxpayer, the amount required to be deducted by the person from each payment shall not exceed twenty percent of the amount of each payment of the pension, salary, wages, or other remuneration.

(5)Where a person served with the notice under subsection (2) is unable to comply with the notice by reason of lack of money owing to, or held for the taxpayer, the person shall, as soon as is practicable and in any case before the payment date specified in the notice, notify the Commissioner General accordingly.

(6)If a notice is served on the Commissioner General under subsection (5), the Commissioner General shall, by notice in writing—

(a)accept the notification and cancel or amend the notice issued under subsection (2); or

(b)reject the notification.

(7)The Commissioner General shall, by notice in writing to a person under this section, revoke or amend a notice served under subsection (2) if the taxpayer has paid the whole or part of the tax payable or has made an arrangement satisfactory to the Commissioner General for payment of the tax.

(8)A copy of a notice served on a person under this section shall also be served on the taxpayer.

(9)A person making a payment in accordance with a notice under subsection (2) is treated as acting under the authority of the taxpayer and of all other persons concerned and is indemnified in respect of the payment despite any provisions to the contrary in any written law, contract, or agreement.

(10)The Commissioner General must credit any amount paid by a person under this section against the tax owing by the taxpayer.

(11)A person who does not comply with a notice issued under this section is personally liable for the amount specified in the notice which shall be treated and collected as unpaid tax under this Act.

35. Distress proceedings

(1)The Commissioner General or an officer authorised by the Commissioner General in writing may issue an order, in writing, for the recovery of unpaid tax by distress and sale of the movable property of a taxpayer.

(2)An order issued under subsection (1) shall specify—

(a)the taxpayer against whose property the order is issued;

(b)the amount of the unpaid tax liability;

(c)the property against which distress is to be executed and the location of the property; and

(d)the tax liability to which the order relates.

(3)For the purposes of executing distress under subsection (1), the Commissioner General or an officer authorised by the Commissioner General may—

(a)at any time, enter any premises described in the order for distress proceedings; and

(b)require a police officer to be present while the distress is being executed.

(4)Any property subject to distress proceedings under this section shall be—

(a)identified by the attaching of a notice stating—“PROPERTY IMPOUNDED FOR NOT COMPLYING WITH TAX OBLIGATIONS BY ORDER OF THE COMMISSIONER GENERAL OF THE UGANDA REVENUE AUTHORITY UNDER SECTION 37 OF THE TAX PROCEDURES CODE ACT”; and

(b)kept at the premises where the distress is executed or at any other place that the Commissioner General or authorised officer may consider appropriate, at the cost of the taxpayer.

(5)If the taxpayer does not pay the tax due and specified in the order under subsection (1), together with the costs of the distress—

(a)in the case of perishable goods, within a period that the Commissioner General or authorised officer considers reasonable having regard to the condition of the goods; or

(b)in any other case, within ten days after the distress is executed, the property subject to the distress proceedings may be disposed of by sale by public auction or in such other manner as the Commissioner General or authorised officer may direct.

(6)The proceeds of a disposal under subsection (5) shall be applied by the Commissioner General in the following order—

(a)towards the cost of taking, keeping, and selling the property subject to distress proceedings;

(b)towards the payment of any tax, penalty, or interest owing by the taxpayer; and

(c)the remainder of the proceeds, if any, are to be paid to the taxpayer.

(7)Where the proceeds of disposal are less than the sum of the costs of the distress and the tax payable, the Commissioner General or authorised officer may recover the shortfall in accordance with this Part.

36. Temporary closure of business

(1)The Commissioner General or an officer authorised in writing by the Commissioner General for the purposes of this section may notify a person in writing of the intention to close down part or the whole of the person’s business premises for default in paying a tax that is due and payable or for failure to comply with the requirements of electronic receipting and invoicing or tax stamps within fifteen days from the date of the notice.

(2)Where a taxpayer does not pay the tax due or fails to comply with the requirements of electronic receipting and invoicing or tax stamps after service of a notice under subsection (1), the Commissioner General or authorised officer may issue an order to close down part or the whole of the business premises of the taxpayer for a period not exceeding fifteen days.

(3)The Commissioner General or authorised officer may, at any time, enter any premises described in an order issued under subsection (2) for the purposes of executing the order and may require a police officer to be present while the order is being executed.

(4)The Commissioner General or an authorised officer shall affix in a conspicuous place at any entrance to the premises that have been closed in accordance with an order issued under subsection (2), a notice in the following words—“TEMPORARILY CLOSED FOR FAILURE TO COMPLY WITH A TAX OBLIGATION”

(5)If the taxpayer complies with the tax obligations under subsection (1) during the period of closure, the Commissioner General shall immediately remove the notice referred to in subsection (4).

37. Charge over immovable property

(1)If a taxpayer who is the owner of land or a building in Uganda does not pay tax by the due date, the Commissioner General may, by notice in writing, to the Registrar of Titles, direct the Registrar of Titles that the land or building in the notice is the subject of a security for unpaid tax.

(2)The Commissioner General shall serve a copy of the notice on the taxpayer.

(3)Upon receipt of the notice under subsection (1), the Registrar of Titles shall, without fee, register the directive as if it were an instrument of mortgage or charge on the land or building and that registration, subject to any prior mortgage or charge, operates in all respects as a legal mortgage or charge on that land or building to secure the amount of the unpaid tax.

(4)Where a taxpayer does not pay the tax due within twelve months after receiving the copy of the notice under subsection (2), the Commissioner General may commence distress proceedings against the land or building of the taxpayer.

(5)Upon receipt of the full amount of tax secured under this section, the Commissioner General shall notify the registrar to cancel the entry made under subsection (3) and the registrar shall, without fee, cancel the entry.

(6)This section does not preclude the Commissioner General from registering a caveat on the land or building as an interim measure to stop the transfer of the land or building.

38. Seizure of goods

(1)The Commissioner General or a tax officer authorised in writing by the Commissioner General may seize any goods in respect of which there are reasonable grounds to believe that the tax payable in respect of the supply, removal or import of the goods has not been paid.

(2)Goods seized under subsection (1) shall be stored in a place approved by the Commissioner General or authorised officer for the storage of seized goods.

(3)Upon seizing the goods, the person seizing the goods shall obtain a written statement from the owner or the person who has custody or control of the goods at the time of the seizure, specifying the quantity and quality of the goods.

(4)Subject to subsection (5), where goods are seized under this section, the Commissioner General or authorised officer shall, within ten days after the seizure, serve on the owner of the goods or the person who has custody or control of the goods immediately before the seizure, a notice—

(a)identifying the goods;

(b)stating that the goods have been seized under this section and the reason for the seizure; and

(c)setting out the terms for the release or disposal of the goods.

(5)Where after making reasonable enquiries, the Commissioner General does not have sufficient information to identify the person on whom a notice under subsection (4) should be served, the Commissioner General or authorised officer may serve the notice on a person claiming the goods, but that person must give sufficient information to enable the notice to be served.

(6)The Commissioner General or authorised officer may authorise the release of any goods seized under subsection (1) to the person on whom a notice under subsection (4) has been served where that person has paid, or gives security for the payment of the tax assessed as payable or the tax that will become payable in respect of the supply, removal, or import of the goods.

(7)If the proceeds of disposal are less than the sum of the costs of the seizure and the tax payable, the Commissioner General or authorised officer may recover the shortfall in accordance with this Part.

(8)Subject to subsection (6), the Commissioner General shall retain the goods seized under subsection (1)—

(a)in the case of perishable goods, for a period that the Commissioner General or authorised officer considers reasonable having regard to the condition of the goods; or

(b)in any other case, until the later of—

(i)ten days after the seizure of the goods; or

(ii)ten days after the date on which payment of the tax is due in respect of the supply, or import of the goods.

(9)Upon expiry of the period specified in subsection (8), the Commissioner General or an authorised officer may sell the goods in the manner specified in section 35(5) and apply the proceeds of sale as set out in section 35(6).

39. Security for unpaid tax

The Commissioner General may require a taxpayer, by notice in writing, to give security by bond, deposit, or otherwise satisfactory to the Commissioner General, for the payment of tax that may become payable, if there is reason to believe that—

(a)a taxpayer establishing a business in Uganda intends to carry on the business for a limited time only; or

(b)a taxpayer may not pay tax when it becomes payable.

40. Priority of withholding tax and VAT

(1)The following amounts are held in trust for the Government by the person receiving or withholding the amount—

(a)if the person is a taxable person under the Value Added Tax Act, the VAT on taxable supplies made by the person, net of any input tax credit allowed; and

(b)withholding tax.

(2)Notwithstanding any other enactment, withholding tax withheld or deducted by a person—

(a)shall not be subject to attachment in respect of any debt or liability of the person;

(b)is a first charge on the payment or amount from which the tax is withheld or deducted; and

(c)shall be withheld or deducted prior to any other deduction that the person may be required to make from the payment or amount under an order of any court or any other law.

(3)Where the Commissioner General is satisfied that tax has been overpaid, the Commissioner General shall—

(a)apply the excess in reduction of any other tax due from the taxpayer;

(b)apply the balance of the excess, if any, in reduction of any outstanding liability of the taxpayer to pay other taxes not in dispute or to make provisional tax payments during the year of income in which the refund is to be made; and

(c)refund the remainder, if any, to the taxpayer.

41. Order of payment

When a taxpayer is liable for penal tax and interest in relation to a tax liability and the taxpayer makes a payment that is less than the total amount of tax, penal tax, and interest due, the amount paid is applied in the following order—

(a)in payment of the principal tax;

(b)in payment of penal tax; and

(c)the balance remaining is applied against the interest due.

Interest on late payments

42. Recovery of interest on unpaid tax

(1)The interest payable on unpaid tax under a tax law shall be collected by the Commissioner General in accordance with this Act as if it were unpaid tax.

(2)The interest paid by a person under subsection (1) shall be refunded to the person to the extent that the principal amount to which the interest relates is found not to have been payable.

(3)The interest payable by a person—

(a)in respect of withholding tax payable by the person; or

(b)in respect of an amount referred to in section 13(7) or 34 which is payable by the person,

is borne personally by the person and is not recoverable from any other person.

Part X – Remission of tax

43. Remission of tax

(1)Where the Commissioner General is of the opinion that the whole or any part of the tax payable under a tax law by a taxpayer cannot be effectively recovered by reason of hardship, impossibility, undue difficulty or the excessive cost of recovery, the Commissioner General may refer the taxpayer’s case to the Minister.

(2)Where a taxpayer’s case is referred to the Minister under subsection (1) and the Minister is satisfied that the tax due cannot be effectively recovered, the Minister shall, with the approval of Parliament, remit in whole or part, the tax payable by the taxpayer.

(3)For the purposes of this section, “tax” includes interest and penal tax.

44. Tax due and payable by Government

(1)The Minister shall pay any tax due and payable by Government, arising from a commitment made by Government to pay tax on behalf of a person or owing from Government as counterpart funding for aid-funded projects.

(2)For the avoidance of doubt, customs duty shall be levied on goods for use by the Government.

45. Deferment of payment of tax

(1)A person registered as a tax payer under section 3(1) of this Act and who was liable to pay tax on or after 1st April, 2020 and before 30th June, 2020 shall have his or her liability to pay the tax deferred until 31st December, 2020.

(2)The deferral referred to under subsection (1) shall apply only to a person who is a registered tax payer involved in the business of education, tourism, manufacturing, horticulture or floriculture.

(3)A person registered as a tax payer under section 3(1) of this Act and who was liable to withhold tax under section 126 of the Income Tax Act on or after 1st April, 2020 and before 30th June, 2020 shall have his or her liability to pay the tax withheld deferred until 31st December, 2020.

(4)No interest or penalty shall accumulate on the outstanding amount of tax during the period referred to in subsections (1) and (3).

46. Waiver of interest and penalty

Any interest and penalty outstanding as at 30th June, 2020, is waived.

47. Waiver of interest and penalty on payment of principal tax

(1)Any interest and penalty outstanding as at 30th June, 2023, shall be waived where the taxpayer pays the principal tax by 31st December, 2023.

(2)Where the taxpayer pays part of the principal tax outstanding as at 30th June, 2023 by the 31st December, 2023, the payment of interest and penalty shall be waived on a pro-rata basis.

Part XI – Investigations

48. Access to premises, records and data storage devices

(1)For the purposes of administering any provision of a tax law, the Commissioner General—

(a)shall have at all times and without prior notice, full and free access to—

(i)any premises or place;

(ii)any record, including a record in electronic format; or

(iii)any data storage device;

(b)may make an extract or copy from any record, including a record in electronic format, of any information relevant to a tax obligation;

(c)may seize any record that, in the opinion of the Commissioner General, affords evidence which may be material in determining the correct tax liability of any person;

(d)may seize a data storage device that may contain data relevant to a tax obligation; and

(e)may retain any record or data storage device seized under this section for as long as it is required for determining the obligation and liability of the taxpayer, including any proceedings under this Act.

(2)The Commissioner General may require a police officer to be present for the purposes of exercising powers under this section.

(3)The occupier of the premises or place in which an exercise of power under subsection (1) relates shall provide all reasonable assistance and facilities necessary for the effective exercise of the power including—

(a)answering questions relating to the investigation to which the exercise of power relates orally or in writing; or

(b)providing access to decryption information necessary to decrypt data to which access is sought under this section.

(4)A person whose records or data storage device have been seized and retained under this section may access and examine them, including making copies or extracts from them under supervision as the Commissioner General may determine.

(5)The Commissioner General shall sign for the records or data storage devices seized and retained under this section.

(6)Where any record or data storage device seized and retained under this section is lost or destroyed while in the possession of the Commissioner General, the Commissioner General shall appropriately compensate the owner for the loss or destruction.

(7)This section has effect despite—

(a)any law relating to privilege or the public interest with respect to access to premises or places, or the production of any property or record, including in electronic format; or

(b)any contractual duty of confidentiality.

49. Notice to obtain information or evidence

(1)The Commissioner General may, for the purpose of administering any provision of a tax law, require any person, by notice in writing, whether or not liable for tax—

(a)to furnish, within the time specified in the notice, any information that may be stated in the notice; or

(b)to attend at the time and place designated in the notice for the purpose of being examined by the Commissioner General concerning the tax affairs of that person or any other person, and for that purpose the Commissioner General may require the person to produce any record, including an electronic format, in the control of the person.

(2)If the notice under subsection (1) is not served on a person in accordance with section 90, the notice may be published in any widely circulated newspaper in Uganda and publication in such newspaper is treated as service for the purposes of this section.

(3)The Commissioner General may require the information referred to in subsection (1) to be—

(a)given on oath and, for that purpose, the Commissioner General may administer the oath; or

(b)verified by statutory declaration or otherwise.

(4)Where a taxpayer fails to provide the information requested under this section, the taxpayer shall not be allowed to provide that information at objection to a tax decision or during alternative dispute resolution procedure proceedings.

(5)Subsection (4) shall not apply to the information requested for by the Commissioner General where the information is more than three years from the date the document was authored or beyond the past three financial years.

(6)This section has effect despite—

(a)any law relating to privilege or the public interest with respect to the giving of information or the production of any record, including information in electronic format; or

(b)any contractual duty of confidentiality.

(7)Notwithstanding subsection (1), a person engaged in the construction or extractive industry shall disclose to the Commissioner General, the names of the persons contracted in the course of performance of duties or business within seven days from the date of signing the contract.

(8)Any person engaged in the construction or extractive industry, who fails to comply with the provisions of subsection (7), is liable to pay a penalty of one thousand currency points.[subsection (8) corrected by section 8 of General Notice 2917 of 2024]

Part XII – Certificates

50. Tax clearance certificate

(1)A taxpayer providing a passenger transport service or a freight transport service with a goods vehicle with a capacity of two tonnes or more, shall if required by the Competent Authority, obtain a tax clearance certificate from the Commissioner General as proof of compliance with the taxpayer’s obligations.

(2)A tax payer providing warehousing or clearing and forwarding services shall obtain a tax clearance certificate from the Commissioner General as proof of compliance with the taxpayer’s obligations.

(3)A taxpayer supplying goods or services to the Government shall obtain a tax clearance certificate from the Commissioner General as proof of compliance with the taxpayer’s tax obligations.

(4)Any person who requires a tax clearance certificate shall apply to the Commissioner General for the certificate as proof of tax compliance.

51. Uganda Revenue Authority to issue certificates of origin

The Uganda Revenue Authority shall be responsible for issuing certificates of origin required under section 111(2) of the East African Community Customs Management Act, 2004.

Part XIII – Practice notes and rulings

Practice notes

52. Practice notes

(1)The Commissioner General may issue practice notes setting out the Commissioner General’s understanding of the application of a provision in a tax law.

(2)The Commissioner General shall issue a practice note by publishing a notice of the practice note in the Gazette.

(3)A practice note issued under this Act is binding on the Commissioner General until it is revoked by the Commissioner General.

(4)A practice note applies from the date specified in the notice and if no date is specified, from the date of publication in the Gazette.

(5)The Commissioner General may revoke a practice note, in whole or part, by publishing a notice of the revocation in the Gazette or in any widely circulated newspaper.

(6)A practice note that has been revoked in whole or in part shall—

(a)continue to apply to a transaction commenced before the practice note is revoked; and

(b)not apply to a transaction commenced after the practice note is revoked to the extent that the practice note is revoked.

Private rulings

53. Private rulings

(1)Subject to subsection (2), the Commissioner General may, upon application in writing by a taxpayer, issue to the taxpayer a private ruling setting out the position of the Commissioner General regarding the application of a provision in a tax law to a transaction entered into or proposed to be entered into by the taxpayer.

(2)The Commissioner General may reject an application for a private ruling where—

(a)the Commissioner General has already decided the matter that is the subject of the application in a tax assessment;

(b)the Commissioner General is of the opinion that an existing practice note adequately covers the matter that is the subject of the application;

(c)the application relates to a matter that is the subject of a tax audit or an objection;

(d)the application is frivolous or vexatious;

(e)the transaction to which the application relates has not been carried out and there are reasonable grounds to believe that it will not be carried out;

(f)the applicant has not provided the Commissioner General with sufficient information to make a private ruling; or

(g)in the opinion of the Commissioner General, it would be unreasonable to comply with the application having regard to the resources needed to comply.

(3)Where a taxpayer has made a full and true disclosure of the nature of all aspects of the transaction relevant to the ruling and the transaction has proceeded in all material respects as described in the application of the taxpayer for the ruling, the ruling is binding on the Commissioner General in relation to the taxpayer to whom the ruling has been issued.

(4)A private ruling is not binding on the taxpayer to whom it is issued.

(5)Where a private ruling is inconsistent with an existing practice note, the private ruling has priority to the extent of the inconsistency.

(6)Where the Commissioner General rejects an application for a private ruling, the Commissioner General shall notify the taxpayer in writing.

(7)A private ruling is issued by serving a written notice of the ruling on the applicant and the ruling shall set out the matter ruled on, identifying—

(a)the taxpayer;

(b)the tax law relevant to the ruling;

(c)the tax period to which the ruling applies;

(d)the transaction to which the ruling relates; and

(e)any assumptions on which the ruling is based.

(8)The Commissioner General may revoke a private ruling in whole or in part by written notice served on the taxpayer to whom the ruling is issued.

(9)A private ruling is not a tax decision for the purposes of this Act.

Part XIV – Tax officers

54. Delegation

(1)Subject to this Act, the Commissioner General may, by written instrument, delegate to a tax officer, an accounting officer of a local government or Kampala Capital City Authority any duty, power, or function conferred or imposed on the Commissioner General under a tax law, other than the power to compound offences under section 84 and the power to delegate conferred by this section.

(2)A reference in a tax law to the Commissioner General includes, in respect of the exercise of a power or performance of a function delegated to a tax officer, a reference to the tax officer.

(3)A delegation under this section is revocable at will and does not prevent the exercise of a power or performance of a function by the Commissioner General.

55. Confidentiality

(1)A tax officer shall regard as secret and confidential ail information and documents received in performance of duties as a tax officer.

(2)A person appointed under, or employed in carrying out the provisions of a tax law shall not disclose any information or produce any document which has come into the person’s possession or knowledge in connection with the performance of duties under a tax law except as may be necessary for the purpose of giving effect to the provisions of a tax law.

(3)Nothing in this section prevents the disclosure of information or any document to—

(a)a court or the Tribunal where the disclosure is required for the purposes of a tax law;

(b)the Minister or any other person if the disclosure is necessary for the purposes of a tax law;

(c)a person in the service of the Government in a revenue or statistical department if such disclosure is necessary for the performance of the person’s official duties;

(d)the Auditor General or any person authorised by the Auditor General if disclosure is necessary for the performance of official duties; or

(e)the competent authority of the Government of another country with which Uganda has entered into an agreement for the avoidance of double taxation or for the exchange of information, to the extent permitted under that agreement.

(4)A person receiving documents and information under subsection (2) or (3) is required to keep them secret under the provisions of this section, except to the minimum extent necessary to achieve the purpose for which the disclosure is necessary.

(5)The documents and information obtained by the Commissioner General in the performance of the duties and exercise of the powers of the Commissioner General under a tax law may be used by the Commissioner General for the purposes of any other tax law.

(6)This section shall continue to apply to a former tax officer or person formerly appointed or employed under a tax law as it applies to a tax officer.

Part XV – Penal tax

56. Penal tax for default in furnishing tax return

Any person who fails to furnish a tax return by the due date, or within a further time allowed by the Commissioner General under this Act is liable to pay a penal tax equal to two percent of the tax payable under the return before subtracting any credit allowed to the taxpayer on his or her tax return or ten currency points per month, whichever is higher, for the period the return is outstanding.

57. Penal tax for failing to maintain proper records

Any person who deliberately fails to maintain proper records as required under a tax law for a tax period is liable to pay a penal tax equal to double the amount of tax payable by the person for the period to which the failure relates.

58. Penal tax for failure to provide information

(1)Any person who, upon request by the Commissioner General, fails to provide records in respect of transfer pricing within thirty days after the request, is liable to a penal tax equivalent to two thousand five hundred currency points.

(2)Any person who fails to provide information other than information referred to in subsection (1), to the Commissioner General upon request, is liable to a penal tax of one thousand currency points.

59. Penal tax for making false or misleading statements

Where a person knowingly or recklessly—

(a)makes a statement to an officer of the Authority that is false or misleading in a material particular; or

(b)omits from a statement made to an officer of the Authority any matter or thing without which the statement is misleading in a material particular, and the tax properly payable by the person exceeds the tax that was assessed as payable based on the false or misleading statement or omission,

that person is liable to pay a penal tax equal to double the amount of the excess.

60. Penal tax for understating provisional tax estimates

(1)A provisional taxpayer, whose estimate or revised estimate of chargeable income for a year of income is less than ninety percent of the taxpayer’s actual chargeable income assessed for that year, is liable to penal tax equal to twenty percent of the difference between the tax calculated in respect of the taxpayer’s estimate, or as revised, of chargeable income and the tax calculated in respect of ninety percent of the taxpayer’s actual chargeable income for the year of income.

(2)A provisional taxpayer whose estimate or revised estimate of gross turnover for a year of income is less than ninety percent of the taxpayer’s actual gross turnover for that year is liable to penal tax equal to twenty percent of the difference between the tax calculated in respect of the taxpayer’s estimate, or as revised, of gross turnover and the tax calculated in respect of ninety percent of the taxpayer’s actual gross turnover for the year of income.

(3)This section does not apply to a taxpayer who is in the business of agricultural, plantation, or horticultural farming.

61. Penalty for failing to apply for registration

(1)Any person who does not apply for registration as required under a tax law is liable to a default penalty equal to the higher of—

(a)double the amount of tax payable during the period commencing on the last day of the application period until the person files an application for registration with the Commissioner General or until the Commissioner General registers the person on the Commissioner General’s own motion; or

(b)fifty currency points.

(2)The penalty imposed under this section shall be recovered and collected by the Commissioner General as if it were unpaid tax.

62. Recovery of penal tax

(1)Liability for penal tax is calculated separately in respect of each section dealing with penal tax.

(2)A person is liable for penal tax if the Commissioner General serves notice on the person of a demand for the penal tax setting out the amount of penal tax payable and the due date for payment being a date that is not less than twenty-eight days from the date of service of the notice.

(3)Penal tax shall not be imposed on a person for an act or omission if the person has been convicted of an offence for the same act or omission.

(4)Where penal tax has been paid and criminal proceedings are instituted in respect of the same act or omission, the Commissioner General shall refund the amount of penal tax paid.

(5)Where good cause is shown, in writing, by the person liable to pay penal tax, the Minister may, on the advice of the Commissioner General, remit in whole or part, any penal tax payable.

(6)Penal tax is treated as unpaid tax for the purposes of this Act and shall be recovered and collected as unpaid tax.

Part XVI – Offences

63. Failing to furnish tax return

(1)Any person who does not furnish a tax return by the due date, or within such further time as the Commissioner General may allow, commits an offence and is liable, on conviction, to a fine not exceeding fifty currency points.

(2)Where a person convicted of an offence under subsection (1) fails to furnish the return to which the offence relates within the period specified by the court, the person commits another offence and is liable, on conviction, to a fine not exceeding one hundred currency points.

64. Failure to comply with obligations under Act

(1)Any person who does not—

(a)comply with a notice served on the person under section 34;

(b)comply with a notice served on the person under section 18(2);

(c)provide reasonable facilities and assistance as required under section 48;

(d)comply with a notice served on the person under section 49;

(e)get a tax clearance certificate prior to performing an act specified in section 50; or

(f)comply with section 10, 12, 55 or 90,

commits an offence and is liable, on conviction, to a fine not exceeding one hundred currency points.

(2)A person who notifies the Commissioner General in writing under section 34(5) is considered to be in compliance with any notice served on the person under section 34(2) until the Commissioner General serves the person with a notice under section 34(6) amending the notice served under section 34(2) or rejecting the person’s notice under section 34(5).

65. Failure to maintain proper records

A taxpayer who knowingly or recklessly does not maintain records as required under a tax law commits an offence and is liable, on conviction, to a fine not exceeding one hundred currency points or to imprisonment for a term not exceeding six years, or both.

66. Use of false TIN

(1)Any person who knowingly or recklessly uses a false TIN on a tax return or other document prescribed or used for the purposes of a tax law commits an offence and is liable, on conviction, to a fine not exceeding one hundred fifty currency points or to imprisonment for a term not exceeding six years, or both.

(2)A person who uses a TIN of another person is treated as having used a false TIN, unless the TIN has been used in the circumstances specified in section 4(6).

67. Making false or misleading statements

(1)Any person who knowingly or recklessly—

(a)makes a statement to a tax officer that is false or misleading in a material particular; or

(b)omits from a statement made to a tax officer any matter or thing without which the statement is false or misleading in a material particular,

commits an offence and is liable, on conviction, to a fine not exceeding five thousand five hundred currency points or to imprisonment for a term not exceeding ten years, or both.

(2)Section 59 applies in determining whether a person has made a statement to a tax officer.

68. Obstructing tax officer

Any person who obstructs a tax officer in the performance of duties under a tax law commits an offence and is liable, on conviction, to a fine not exceeding two hundred fifty currency points or to imprisonment for a term not exceeding ten years, or both.

69. Aiding and abetting tax offence

(1)Any person who aids, abets, counsels, or induces another person to commit an offence under a tax law, commits an offence and is liable, on conviction, for the same punishment as imposed for the principal offender.

(2)Where the offender under subsection (1) is a tax agent, the tax agent shall be liable to a fine equal to double the tax evaded or not exceeding two hundred fifty currency points whichever is higher, or to imprisonment for a term not exceeding five years, or both.

70. Offences relating to recovery of tax

Any person who—

(a)rescues any goods that are the subject of an order under section 35 that are in premises which are the subject of an order under section 36, or that have been seized under section 38;

(b)before, during, or after any distress proceedings under section 35 or seizure of goods under section 38, staves, breaks or destroys any goods, or documents relating to any goods, to prevent—

(i)the seizure or the securing of the goods; or

(ii)the proof of an offence; or

(c)enters premises which are the subject of an order under section 36 without the permission of the Commissioner General,

commits an offence and is liable, on conviction, to a fine not exceeding two hundred fifty currency points or to imprisonment for a term not exceeding two years.

71. Offences relating to registration

Any person who—

(a)does not apply for registration as required under a tax law;

(b)does not notify the Commissioner General of a change in registration particulars or circumstances as required under a tax law; or

(c)does not apply for cancellation of registration as required under a tax law,

commits an offence and is liable, on conviction—

(i)if the failure or act is done knowingly or recklessly, to a fine not exceeding one hundred fifty currency points or to imprisonment for a term not exceeding six years, or both; or

(ii)in any other case, a fine not exceeding fifty currency points or to imprisonment for a term not exceeding two years, or both.

72. Offence relating to acting as tax agent without registration

Any 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 twenty-four currency points or to imprisonment for a term not exceeding one year, or both.

73. Failure to affix or activate tax stamps

A taxpayer who fails to affix tax stamps on goods prescribed under section 20(3) or to activate tax stamps commits an offence and is liable, on conviction, to a fine not exceeding one thousand five hundred currency points or to imprisonment for a term not exceeding ten years, or both.

74. Printing over or defacing of tax stamps

Any person who prints over or defaces tax stamps affixed on goods prescribed under section 20(3) commits an offence and is liable, on conviction, to a fine not exceeding one thousand five hundred currency points or to imprisonment for a term not exceeding ten years, or both.

75. Forgery of tax stamps

Any person who forges or is found in possession of a forged tax stamp commits an offence and is liable, on conviction, to a fine not exceeding one thousand five hundred currency points or to imprisonment for a term not exceeding ten years, or both.

76. Failure to use electronic receipting or invoicing

A taxpayer specified under section 92(2) who does not issue an electronic invoice, an electronic receipt or employ an electronic fiscal device in accordance with section 92, commits an offence and is liable, on conviction, to a fine not exceeding one thousand five hundred currency points or to imprisonment for a term not exceeding ten years, or both.

77. Forgery of electronic receipt or invoice

Any person who forges or is found in possession of a forged electronic receipt or invoice commits an offence and is liable, on conviction, to a fine not exceeding one thousand five hundred currency points or to imprisonment for a term not exceeding ten years, or both.

78. Interference with electronic fiscal device and electronic dispensing control device

Any person who makes an unauthorised interference with the software or hardware of an electronic fiscal device or electronic dispensing control device commits an offence and is liable, on conviction, to a fine not exceeding one thousand five hundred currency points or to imprisonment for a term not exceeding ten years, or both.

79. Offences relating to automatic exchange of information

Any person who contrary to the regulations made under section 88(5) of the Income Tax Act—

(a)fails to file an information return for purposes of automatic exchange of information commits an offence and is liable, on conviction, to a fine not exceeding two thousand five hundred currency points for each day of default or to imprisonment for a term not exceeding ten years, or both;

(b)fails to maintain records for purposes of automatic exchange of information commits an offence and is liable, on conviction, to a fine not exceeding two thousand five hundred currency points for each day of default or to imprisonment for a term not exceeding ten years, or both;

(c)makes a false or misleading statement in the information return commits an offence and is liable, on conviction, to a fine not exceeding two thousand five hundred currency points for each day of default or to imprisonment for a term not exceeding ten years, or both; or

(d)omits from a statement made in the information return commits an offence and is liable, on conviction, to a fine not exceeding two thousand five hundred currency points for each day of default or to imprisonment for a term not exceeding ten years, or both.

80. Fixing tax stamp on wrong goods, brand or volume

A taxpayer who fixes and activates a tax stamp on a wrong good, brand or volume other than a good, brand or volume for that tax stamp commits an offence and is liable, on conviction, to a fine not exceeding five thousand currency points or imprisonment not exceeding ten years, or both.

81. Offences in relation to tax officers

(1)A tax officer who—

(a)directly or indirectly asks for, or takes in connection with any of the tax officer’s duties, a payment or reward, whether pecuniary or otherwise, or a promise or security for any payment or reward, not being a payment or reward which the officer is lawfully entitled to receive; or

(b)enters into or acquiesces in any agreement to do any act or thing, abstain from doing any act or thing, permit or connive in the doing of any act or thing, or conceal any act or thing whereby the tax revenue is or may be defrauded or which is contrary to the provisions of a tax law or to the proper execution of the officer’s duty,

commits an offence and is liable, on conviction, to a fine not exceeding one hundred fifty currency points or to imprisonment for a term not exceeding six years, or both.

(2)Any person who—

(a)directly or indirectly offers or gives to a tax officer any payment or reward, whether pecuniary or otherwise, or any promise or security for any such payment or reward, not being a payment or reward which the officer is lawfully entitled to receive; or

(b)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 at the doing of any act or thing, or concealing any act or thing by which tax revenue is or may be defrauded or which is contrary to the provisions of a tax law or to the proper execution of the officer’s duty,

commits an offence and is liable, on conviction, to a fine not exceeding one hundred fifty currency points or to imprisonment for a term not exceeding six years, or both.

(3)A tax officer who commits an act specified in subsection (1) and who volunteers information to the Commissioner General relating to that act is—

(a)exonerated from prosecution; but

(b)is liable for twenty percent of the fine that would be imposed on a person convicted of an offence under subsection (1).

(4)Any person who commits an act specified in subsection (2), and who volunteers information to the Commissioner General relating to that act is—

(a)exonerated from prosecution; but

(b)is liable for the amount of tax unpaid as a result of the agreement with the tax officer referred to in subsection (2).

(5)A tax officer convicted of an offence under subsection (1) is, in addition to any punishment imposed under that subsection, liable for the amount of tax unpaid as a result of the agreement referred to in subsection (2).

(6)Any person who impersonates a tax officer commits an offence and is liable, on conviction, to a fine not exceeding one hundred currency points or to imprisonment for a term not exceeding six years, or both.

82. Offences by bodies of persons

(1)When an offence under a tax law is committed by a company, the offence is treated as having been committed by a person who, at the time the offence is committed, is—

(a)the chief executive officer, managing director, a director, company secretary, treasurer, or other similar officer of the company; or

(b)acting or purporting to act in the capacity referred to in paragraph (a).

(2)Where an offence under a tax law is committed by a partnership, every partner at the time of the commission of the offence is treated as having committed the offence.

(3)When an offence under a tax law is committed by an unincorporated association or body of persons, the offence is treated as having been committed by a person who, at the time the offence was committed, was—

(a)involved in the management of the unincorporated association or body of persons; or

(b)acting or purporting to act in the capacity referred to in paragraph (a).

(4)This section does not apply to a person if—

(a)the offence is committed without the consent or knowledge of a person specified under subsection (1), (2) or (3); or

(b)the person specified under subsection (1), (2) or (3) exercised all diligence to prevent the commission of the offence as ought to have been exercised having regard to the nature of the representative’s functions and all other circumstances.

83. Tax officer may appear on behalf of Commissioner General

(1)Notwithstanding anything in any written law, a tax officer duly authorised in writing by the Commissioner General may appear in any court on behalf of the Commissioner General in any civil proceedings in which the Commissioner General is a party.

(2)Notwithstanding anything in any written law, a tax officer duly authorised in writing by the Commissioner General may conduct any prosecution for an offence under this Act and for that purpose, the officer has all the powers of a public prosecutor appointed under section 42 of the Magistrates Courts Act subject to the powers of the Director of Public Prosecutions under Article 120 of the Constitution.

84. Compounding of offences

(1)If a person has committed an offence under a tax law, other than under section 81, the Commissioner General may, at any time prior to the commencement of court proceedings, enter into an agreement with the offender to compound the offence if the offender agrees to pay to the Commissioner General—

(a)any unpaid tax; and

(b)an amount not exceeding the maximum fine imposed by the tax law for the offence.

(2)Where a person has committed an offence under a tax law, other than under section 81 of this Act and that person voluntarily discloses the commission of the offence to the Commissioner General, at any time prior to the commencement of court proceedings, the Commissioner General may enter into an agreement with the offender to compound the offence if the offender agrees to pay to the Commissioner General the outstanding unpaid tax and that person shall not be required to pay any interest or fine due.

(3)The Commissioner General may compound an offence under this section only if the offender admits, in writing, to committing the offence and requests the Commissioner General to enter into a compounding agreement in relation to the offence.

(4)If the Commissioner General compounds an offence under this section, the compounding agreement in relation to the offence—

(a)shall specify the name of the offender, the offence committed, the sum of money to be paid, and the date for payment;

(b)shall have attached a copy of the written admission referred to in subsection (3);

(c)shall be served on the offender;

(d)is not subject to any appeal;

(e)may be enforced in the same manner as a decree of any court for the payment of the amount stated in the order; and

(f)on production to any court, is treated as proof of the conviction of the offender for the offence specified.

(5)Where the Commissioner General compounds an offence under this section, the offender is not be liable for prosecution or penal tax in respect of the same act or omission that was the subject of the compounded offence.

85. Tax charged to be paid despite prosecution

The amount of any tax due and payable under a tax law by a taxpayer is not abated by reason only of the conviction or punishment of the taxpayer for an offence under any tax law, or for the compounding of such office under section 84.

Part XVII – Miscellaneous

86. Validity of tax decision

The validity of a tax decision, a notice of a tax decision, or any other movment purporting to be made or executed under a tax law is not—

(a)affected by reason that any of the provisions of the tax law under which it is made have not been complied with;

(b)quashed or deemed to be void or voidable for want of form; or

(c)affected by reason of any mistake, defect, omission or commission in it.

87. Rectification of mistake

Where the Commissioner General is satisfied that an order or decision made, or a document or notice issued contains an error which is apparent from the record and that the error does not involve a dispute as to the interpretation of the law or facts of the case, the Commissioner General may, for the purpose of rectifying the error, amend the order, decision, document or notice at any time before the expiry of three years from the date of making or issuing the order, decision, document or notice.

88. Forms, notices, and authentication of documents

(1)Subject to section 55, a form, notice, tax return, statement, table, or any other document required or published by the Commissioner General for the purposes of a tax law shall be in the form determined by the Commissioner General.

(2)The Commissioner General shall make any document referred to in subsection (1) available to the public at the offices of the Authority and at other locations, or by mail or other means, determined by the Commissioner General.

(3)A notice or other document issued, served, or given by the Commissioner General under a tax law is sufficiently authenticated if the name or title of the Commissioner General, or an authorised tax officer, is printed, stamped, or written on the document.

89. Approved or prescribed form

(1)A tax return, notice, or other document required to be furnished or lodged under a tax law is in the approved or prescribed form if—

(a)it is in the form prescribed by the Commissioner General for that type of tax return, notice, or document;

(b)it contains the information, including any attached documents required; and

(c)is signed as required by the form.

(2)The Commissioner General shall publish the prescribed forms in the Gazette and a newspaper with wide circulation.

90. Manner of furnishing documents or service of notices

(1)Except as provided in this section, a tax return, application, notice, or other document required to be furnished by a taxpayer under a tax law shall be furnished by—

(a)personally delivering the document to an office of the Authority; or

(b)registered post to an office of the Authority, and is treated as received by the Commissioner General when acknowledged by stamping or other prescribed method, electronic or otherwise.

(2)Except as otherwise provided in a tax law, a notice or other document required to be served by the Commissioner General on a person for the purposes of a tax law is treated as sufficiently served on the person if—

(a)personally served on the person;

(b)left at the person’s registered office, place of business, or last known address as stated in any communication with the Commissioner General;

(c)sent by registered post to the person’s registered office, place of business, or last known address as stated in any communication with the Commissioner General; or

(d)an electronic data message is transmitted to the person’s known or registered electronic account.

(3)Where a notice or other document is served by registered post, the notice or document is, in the absence of any proof to the contrary, treated as having been sufficiently served on the fourteenth day after the date of postage and, in proving service, it is sufficient to prove that the envelope containing the notice or other document was properly addressed and was posted.

91. Electronic returns and notices

(1)The Commissioner General may establish and operate a procedure to be known as the electronic notice system, for the electronic furnishing of tax returns or other documents to the Commissioner General and the electronic service of notices and other documents by the Commissioner General.

(2)For the purposes of subsection (1), the Commissioner General may prescribe conditions for—

(a)the registration of taxpayers to participate in the electronic notice system;

(b)the issuing and cancellation of authentication codes to registered users;

(c)the tax returns and other documents that may be transmitted through the electronic notice system, including the format and manner in which they are to be transmitted;

(d)the correction of errors in or amendments to electronic returns or other documents;

(e)the use of the electronic notice system, including the procedure applicable if there is a breakdown or interruption in the system;

(f)the use in any electronic transmission; of symbols, codes, abbreviations, or other notations to represent any particulars or information required under a tax law; and

(g)any other matter for the proper functioning of the electronic notice system.

(3)Where a tax return or other document of a registered user has been transmitted to the Commissioner General through the electronic system using the authentication code assigned to a registered user—

(a)with or without the Authority of the registered user; and

(b)before the registered user applies to the Commissioner General for cancellation of the authentication code, the return or other document is, for the purposes of the tax law under which it has been furnished, presumed to be furnished by the registered user unless the registered user proves the contrary.

(4)A person who furnishes an electronic tax return or other document on behalf of another person must not divulge or disclose the contents of the return or document, or a copy of it, without the prior written consent of the Commissioner General.

92. Electronic receipting and electronic invoicing

(1)A taxpayer may issue an e-invoice or e-receipt, or employ an electronic fiscal device which shall be linked to the centralised invoicing and receipting system or a device authenticated by the Uganda Revenue Authority.

(2)The Commissioner General shall, by notice in the Gazette, specify taxpayers for whom it shall be mandatory to issue e-invoices or e-receipts or employ electronic fiscal devices which shall be linked to the centralised invoicing and receipting system or devices authenticated by the Uganda Revenue Authority.

(3)A taxpayer specified by the Commissioner General under subsection (2), shall issue e-invoices or e-receipts or employ an electronic fiscal device in all business transactions.

93. Penal tax relating to electronic receipting and electronic invoicing

(1)A taxpayer specified under section 80(2) who does not use an electronic fiscal device is liable to pay a penal tax equivalent to the tax due on the goods or services, or four hundred currency points, whichever is higher.

(2)A taxpayer specified under section 80(2) who does not issue an e-invoice or e-receipt for goods or services, or who tampers with an electronic fiscal device, is liable to pay a penal tax equivalent to the tax due on the goods or services or three hundred currency points, whichever is higher.

(3)Any person who attempts to acquire or who acquires an electronic fiscal device that is not linked to the centralised invoicing and receipting system or authenticated by the Uganda Revenue Authority commits an offence and is liable, on conviction, to a fine not exceeding three hundred currency points, or to imprisonment for a term not exceeding three years, or both.

94. Payment of informers

(1)The Commissioner General shall pay to a person who—

(a)provides information leading to identification of unassessed tax or duty, one percent of the tax or duty assessed or fifteen million shillings, whichever is less; or

(b)provides information leading to recovery of unassessed tax or duty, five percent of the tax or duty recovered or one hundred million shillings whichever is less.

(2)Subsection (1) shall not apply to an officer or a staff of the Authority.

95. Regulations

(1)The Minister may, by statutory instrument, make regulations—

(a)prescribing fees, or other matters required under this Act; or

(b)for the better carrying into effect of the provisions and purposes of this Act.

(2)Without prejudice to the general effect of subsection (1), regulations made under that subsection may—

(a)contain provisions of a saving or transitional nature subsequent to the coming into force of this Act; or

(b)prescribe in respect of a contravention of the regulations—

(i)a penalty not exceeding a fine of one hundred twenty-five currency points or imprisonment for a term not exceeding one year, or both;

(ii)in the case of the second or subsequent offence, a penalty not exceeding a fine of fifty currency points or imprisonment for a term not exceeding two years, or both;

(iii)in the case of a continuing offence, an additional fine not exceeding five currency points in respect of each day on which the offence continues; and

(iv)a requirement that the court must forfeit to the Government anything with which the offence was committed.

96. Power to amend Schedules

(1)The Minister may, by statutory instrument, with the approval of Cabinet, amend Schedule 1 to this Act.

(2)The Minister may, by statutory instrument, with the approval of Parliament, amend Schedules 2 and 4 to this Act.

97. Transitional provisions

(1)A prosecution commenced before the commencement of this Act shall continue and be disposed of as if this Act had not come into force.

(2)Where the period for making any application, appeal, or prosecution has expired before the commencement of this Act, nothing in this Act is to be construed as enabling the application, appeal, or prosecution to be made under this Act by reason only of the fact that a longer period is specified in this Act.

(3)A tax liability that arose before the commencement of this Act may be recovered under this Act, but without prejudice to any action already taken for the recovery of the tax.

(4)All forms and documents used under the tax laws specified in Schedule 2 to this Act may continue to be used until they are revoked under this Act and all references in those forms and documents to the tax laws under that Schedule are taken to refer to the corresponding provisions in this Act.

Schedule 1 (Sections 2, 96(1))

Currency point

A currency point is equivalent to twenty thousand shillings.

Schedule 2 (Sections 1, 2, 96(2), 97(4))

Tax laws

For the purposes of this Act, a reference to tax law means—

(a)this Act;

(b)the Income Tax Act;

(c)the Value Added Tax Act;

(d)the Excise Duty Act;

(e)the Lotteries and Gaming Act;

(f)any other Act imposing a tax as the Minister, may by statutory instrument declare in accordance with section 96(2).

Schedule 3 (Section 2)

Tax returns filed with Commissioner General

(a)Value added tax return;

(b)Income tax return;

(c)Withholding tax return;

(d)Excise duty return;

(e)Tax return under section 50 of the Lotteries and Gaming Act; and

(f)Stamp duty return.

Schedule 4 (Sections 16(5), 96(2))

Amount of turnover in respect of which audited financial statements are required

Uganda Shillings 500,000,000 or more.

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History of this document

23 December 2024 this version

Amended by Corrigendum

31 December 2023

Consolidation

Read this version

28 July 2023

Amended by Law Revision (Miscellaneous Amendments) Act, 2023

01 July 2022

Amended by Tax Procedures Code (Amendment) Act, 2022

01 April 2020

Amended by Tax Procedures Code (Amendment) Act, 2020

01 July 2019

Amended by Tax Procedures Code (Amendment) Act, 2019

01 July 2017

Amended by Tax Procedures Code (Amendment) Act, 2017

31 December 2014

Published

19 October 2014

Assented to

Cited documents 5

Act 4

1.	Magistrates Courts Act	297 citations
2.	Traffic and Road Safety Act, 1998	173 citations
3.	Income Tax Act	169 citations
4.	Tax Appeals Tribunals Act	34 citations

Statute 1

1.	Constitution of the Republic of Uganda	4344 citations

Documents citing this one 9

Judgment 6

1.	Bank of India (U) Limited v NC Beverages Limited and Another (Civil Suit No. 9 of 2021) [2022] UGCommC 33 (21 March 2022)
2.	Bank of India (U) Limited v NC Beverages Limited and Another (Civil Suit Originating Summons 9 of 2021) [2022] UGCommC 123 (21 March 2022)
3.	Farid Meghani v Uganda Revenue Authority (Civil Appeal 6 of 2021) [2022] UGCommC 145 (12 July 2022)
4.	Kansai Plascon Uganda Limited v Uganda Revenue Authority (Civil Appeal 37 of 2021) [2022] UGCommC 121 (27 January 2022)
5.	Meghani v Uganda Revenue Authority (Civil Appeal No. 6 of 2021) [2022] UGHC 11 (12 July 2022)
6.	Nakabuye v Uganda Revenue Authority (MISCELLANEOUS CAUSE NO. 372 OF 2019) [2020] UGHCCD 48 (14 April 2020)

Gazette 3

1.	Uganda Government Gazette Acts Supplement dated 2020-11-27 number 12
2.	Uganda Government Gazette Statutory Instruments Supplement dated 2021-12-24 number 92
3.	Uganda Government Gazette dated 2018-12-24 number 66

Subsidiary legislation

Title
Tax Procedures Code (E-Invoicing and E-Receipting) Regulations, 2020	Statutory Instrument 82 of 2020

Tax Procedures Code Act, 2014

Act 14 of 2014

Tax Procedures Code Act, 2014

Related documents

Tax Procedures Code Act, 2014

Act 14 of 2014

Part I – Preliminary

1. Application of Act

2. Interpretation

Part II – Registration of taxpayers

3. Registration

4. Tax Identification Number

5. De-registration

Part III – Tax agents and tax representatives

Registration of tax agents

6. Tax Agents Registration Committee

7. Tax agents

8. Registration of tax agents

9. Renewal of registration

10. Registration of additional or substituted tax agents

11. Notice of change in registered particulars

12. Cancellation of registration of tax agent

Tax representatives

13. Liabilities and obligations of tax representative

14. Recovery of tax from successor and duty to notify discontinuance of business

Part IV – Record keeping

15. Accounts and records

Part V – Tax returns

16. Furnishing of tax returns

17. Certification of tax return by tax agent

18. Power of Commissioner General to require tax returns in certain cases

19. Extension of time to furnish tax return

Part VI – Tax stamps

20. Tax stamps

21. Penal tax relating to tax stamps

Part VII – Tax assessments

22. Self-assessment

23. Default assessment

24. Advance assessment

25. Additional assessment

Part VIII – Objections and appeals

26. Objection to tax decision

27. Review of objection decision

28. Burden of proof

Part IX – Collection and recovery of tax

Tax Collection

29. Payment of tax

30. Tax liability of statutory corporations

31. Extension of time to pay tax

32. Tax as debt due to Government of Uganda

Enforced tax collection

33. Collection of tax from persons leaving Uganda permanently

34. Recovery of tax through persons owing money to taxpayer

35. Distress proceedings

36. Temporary closure of business

37. Charge over immovable property

38. Seizure of goods

39. Security for unpaid tax

40. Priority of withholding tax and VAT

41. Order of payment

Interest on late payments

42. Recovery of interest on unpaid tax

Part X – Remission of tax

43. Remission of tax

44. Tax due and payable by Government

45. Deferment of payment of tax

46. Waiver of interest and penalty

47. Waiver of interest and penalty on payment of principal tax

Part XI – Investigations

48. Access to premises, records and data storage devices

49. Notice to obtain information or evidence

Part XII – Certificates

50. Tax clearance certificate

51. Uganda Revenue Authority to issue certificates of origin

Part XIII – Practice notes and rulings

Practice notes

52. Practice notes

Private rulings

53. Private rulings

Part XIV – Tax officers