The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Uganda Revenue Authority has directed commercial banks and other money transfer firms not to transfer money amounting to Shillings 50 million outside without a tax certificate.
This is a significant step to catch tax thieves or corporations that report loses to URA but then transfer huge cash to their shareholders outside Uganda.
In a letter issued Wednesday evening, Henry Saka, the URA Commissioner domestic taxes, says banks are required to implement the directive immediately. The commissioner domestic taxes will issue the certificate to the person transferring the money.
“The requirement is that before transferring any funds in excess of UGX 50M from Uganda to a place outside Uganda, the above tax clearance the certificate should be presented by your clients and verified for authenticity by yourselves,” Saka wrote.
Uganda is one of the countries that operate a free capital account, where investors bring in their money and can take it out anytime they want.
The new directive doesn’t stop them from doing so but adds a layer of scrutiny where the tax collector will be able to know whether the investors actually contribute their fair share by paying taxes.
Previously, URA had sought powers to monitor people’s bank accounts to see how much money goes and whether it rhymes with the taxes declared. This was vehemently rejected by the public.
******
URN
