Rights and Obligations of Taxpayers in Uganda
12 Dec 2023
14 min read
The Uganda Revenue Authority (URA) Taxpayers’ Charter spells out the rights and obligations of the Taxpayer, guides URA in upholding these rights and facilitates the Taxpayer to meet his or her obligations.
It was launched in 2002 and first revised in April 2006 to accommodate the developments in Uganda Revenue Authority (URA) and later in December 2006 to align it with the Public Service Client Charter then in June 2011 and the latest revision in 2015.
The Charter derives authority from the various Tax laws and Regulations governing the administration of taxes in Uganda and clearly outlines the expectations of both the Taxpayer and the Tax Authority.
It acts as a reference point for the Taxpayers in managing their interaction with URA and provides the Tax body with the necessary benchmark for its Client Service Standards. This is done by recognizing its clients as viable partners in the administration and collection of taxes. The Taxpayers charter is therefore a set of guidelines that guarantees a meaningful relationship between URA and its various stakeholders.
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Rights of a Taxpayer
a) Right to fair treatment
Taxpayers have a right to be treated fairly in all their dealings with URA. Tax laws and procedures shall be applied consistently to all taxpayers.
b) Right to finality
Taxpayers have the right to know the maximum amount of time required to challenge URA’s tax related decisions, as well as the maximum amount of time URA has to audit a particular tax year. Taxpayers have the right to know when URA has finalized an audit
c) Right to Privacy
Taxpayers have the right to expect that any URA inquiries, examinations, investigations or enforcement actions will comply with the law and be no more intrusive than necessary and will respect all due process rights, including search and seizure protections.
d) Right to confidentiality
Taxpayers have the right to expect that any information they provide to URA will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action to be taken against URA employees who wrongfully use or disclose taxpayer information.
e) Right to be informed
Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the law and URA procedures in all tax forms, instructions, publication, notices and correspondences. They have the right to be informed of the URA decisions about their tax accounts and to receive clear explanations of the outcomes.
f) Right to timely, quality and professional services
Taxpayers have the right to receive prompt, courteous and professional assistance in their dealings with URA and to receive clear and easily understandable communications from URA.
g) Right to representation
Taxpayer reserves the right to appoint and retain an authorised representative such as a tax agent or clearing agent to represent them in their dealings with URA.
h) Right to challenge and/or object
Taxpayers have the right to raise objections and provide additional documentation in response to tax decision and to expect that URA will consider their objections promptly and fairly, and to receive a response from URA within the period stipulated in the Law.
i) Right to appeal
Taxpayers have a right of appeal to an independent tax tribunal or courts of law in accordance with the law on any matter.
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Obligations of a Taxpayer
a) Registration
All eligible taxpayers should voluntarily register with URA.
b) Refund Claims
Taxpayers have the obligation to submit their tax refund claims using prescribed forms and attach required evidence to support the claim.
c) Keeping of proper records
The Taxpayer is obliged to keep accurate records of accounts, documents and any other relevant information as prescribed under the law
d) File tax returns
Taxpayers are obliged to file accurate and timely tax returns, customs entries or any information relating to their tax obligations
e) Payment of Taxes
Taxpayers are obliged to pay tax in accordance with the law.
f) Avoid Tax Evasion
Taxpayers should not indulge in any form of tax evasion and/or other illegal practices
that cause revenue leakages.
g) Compliance
Taxpayers must comply with their tax obligations as stipulated by the relevant laws
Taxpayers must comply with all processes and procedures as stipulated by law and
administratively to facilitate revenue collection
h) Update personal information
Taxpayers are required to regularly update personal information and payment details
with URA.
i) Due diligence in tax matters
The taxpayer is solely responsible for managing his/her tax obligations and affairs.
j) Be respectful to URA staff
The taxpayer is expected to behave respectfully at all times when dealing with all URA staff.
k) Dealing with authorized staff
The taxpayer and/or his/her authorised agent(s) shall be expected to deal and cooperate with URA’s authorized staff.
l) Quote your TIN
The Taxpayer must always quote their Taxpayer Identification Number (TIN) for any dealings with URA.
m) The need for an interpreter
The Taxpayer shall inform URA of their need for an interpreter.
n) Response to tax notices and any other URA communication
The Taxpayer is obliged to respond to notices and information requests received from URA in a time bound manner.
About the Writer
CPA Innocent MUGISHA
CPA Innocent Mugisha is a Professor of Finance and Accounting with over 10 years experience in teaching Accounting and Finance related courses including Financial Accounting both at University and Professional level. His qualifications are: PhD (candidate), MBA(Finance), CPA(U), FCCA, CIPS, CTA and BCOM (Accounting). Innocent has also published various books on most topics in Accounting and Finance for Business and Professional Studies.
