The Uganda Revenue Authority has offered one more chance in form of tax waiver to it’s taxpayers without worry of paying interest and penalty. The tax waiver under the the procedures code act section 47B is an opportunity the government gives to tax payers who have tax arrears to settle their Liabilities without worrying about the burden of interest and Penalties.
The waiver covers outstanding Liabilities as of June 30 2024 and if the principle tax liability is covered by 30th June 2024 the internet and Penalties relating to to that Liability will be waived and each taxpayer without outstanding principal tax under domestic taxes as of June 30th 2024 qualify for the waiver whoever taxpayers with outstanding taxes in customs are not covered by the waiver.
The government of Uganda recognizes the challenges faced by the taxpayers and offers these waivers as an incentive to voluntary compliance and also cater for taxpayers who missed on previous waivers due to money constraints.
Voluntary compliance is expected to improve taxes significantly and for for many companies and businesses the accumulation of tax penalty and interest can be a significant burden leading to tax evasion and avoidance however tax waivers improve compliance rates since tax payers are given an opportunity which reduces the amount to be paid due to the waiver.
” The new waiver is an opportunity government has given to taxpayers to settle their Liabilities without worrying about the burden of interest and Penalties, said URA Commissioner General John Rujoki Musinguzi in a statement. ” The government introduced the waiver after recognizing the financial challenges many tax payers continue to face particularly those who missed out on previous waivers due to cash constraints, Rujoki Musinguzi added.
Uganda Revenue Authority has indicated that different penalties such as penalties related to digital stamps, EFRIS, non compliance, failure to register, failure to provide information as well as court imposed penalties and interest are not covered by the waiver.
Rujoki Musinguzi also indicated that taxpayers who make partial payments will benefit from a pro-rata waiver in which interest and Penalties will be waived in proportion to the amount of principle tax paid