The Uganda Revenue Authority (URA) has collected Shs 256 billion by utilizing the Exchange of Information on Request (EOIR), a tool that facilitates the sharing of tax-related information between countries.
During the opening of the second Peer Review on EOIR at Sheraton Kampala Hotel, URA’s Commissioner General, John Musinguzi, disclosed this achievement.
Musinguzi highlighted that EOIR has played a pivotal role in detecting and deterring tax evasion and fraud, promoting voluntary compliance, and enhancing the URA’s understanding of taxpayer operations.
Additionally, Musinguzi mentioned that Uganda currently holds a rating of “Largely Compliant” from the Organisation for Economic Cooperation and Development (OECD) Global Forum, which assesses countries’ adherence to international EOIR standards.
The ultimate goal for Uganda is to attain a “Compliant” rating, which would positively impact the country’s reputation, business climate, and investment prospects.
Musinguzi cautioned that receiving a negative rating, such as “non-compliant” or “partially compliant,” would have adverse consequences for Uganda.
Representing the Minister, Moses Kaggwa, the Director of Economic Affairs at the Ministry of Finance, Planning and Economic Development, highlighted the government’s efforts to support the economy’s recovery from the COVID-19 pandemic.
These efforts include reducing borrowing and implementing tax policies that enhance the URA’s efficiency. Kaggwa clarified that these policies do not involve raising tax rates, but rather focus on information exchange with other agencies and partner states under the OECD Global Forum.
The ongoing peer review, scheduled to conclude on Friday, will thoroughly assess Uganda’s implementation of transparency and information exchange standards for tax purposes.
The outcome of this review will determine Uganda’s international rating regarding compliance with the exchange of information on request.
This marks the second round of peer review for Uganda, covering the period from January 2020 to December 2022.
The Global Forum has appointed three assessors from Norway and India, both member jurisdictions, to conduct the review. Lead Assessor Agnes Rojas mentioned that Uganda received a “largely compliant” rating in 2016 and will receive a new rating in 2024 when the final report is submitted for discussion and approval in Paris, France.
The peer review process evaluates both the legal and regulatory framework and the practical implementation of the EOIR standard in Uganda.
It aims to ensure and enhance the effective exchange of information by assessing three main aspects: the availability of information on legal ownership, identity, beneficial ownership, accounting, and banking; the URA’s access to this information; and the efficiency of mechanisms in place to exchange this information with treaty partners.
The Global Forum consists of 162-member jurisdictions, and Uganda currently has the ability to exchange taxpayer information with over 147 jurisdictions worldwide for tax purposes.