The Uganda Revenue Authority(URA) has said it has so far recovered Shs 21 billion out of Shs 50 billion as it tries to nip in the bud a massive VAT tax perpetuated by some companies.
While speaking to Journalists in Kampala last week, Denis Kugonza, the Commissioner Tax Investigations at URA, said some companies had engaged in tax fraud, costing the country billions in lost revenue.
Last month, four city accountants who were suspected for aiding 20 companies to dodge taxes by playing around with books of accounts were apprehended and will be brought to book.
According to Kugonza, the tax body has recovered Shillings 12 billion from James Ssekamwa, a proprietor of JSK consultancy (Who is on remand for three years) on charges of abetting Value Added Tax (VAT).
Others (cases in court) are Enock Kyambadde, Michael Bwengye, Timothy Musoke and Hamza Kirunda, a dealer in cement.
Kugonza said they have established that tax fraud among VAT taxpayers is massive and they are following up to the end to apprehend whoever is involved in the scheme.
“From the success of our tax investigations, some EFRIS fraudsters have been arrested and arraigned in court to determine their fate to imprisonment of 3-10 years; penal tax on unpaid tax at a compounded rate and fines,” he said.
He confirmed that it is true that the EFRIS ‘system’ has been manipulated by fraudsters however, based on their investigations, strategies have been put in place to combat the manipulation.
Agnes Nabwire, the assistant commissioner, Intelligence at URA said VAT is an indirect tax paid by the final consumer of the goods/services however, many of these tax [collecting] agents or middlemen in Uganda such as supermarkets are not remitting it to URA.
The penalties for failure to comply by taxpayer obligations include imprisonment for a period ranging from three to 10 years; penal tax on unpaid tax at a compounded rate and fines.