Tax Simplified - Uganda

The constitutional court has not declared S. 15 of the Tax Appeals Tribunal Act unconstitutional.

Court has only section has only tried to restrict it's application.

This is the provision that provides for payment of 30% of tax assessed prior to proceeding before the Tax Appeals Tribunal;

The Supreme Court in *Uganda Projects implementation and management centre v URA SCCA. No.2/2009* ruled that, for anyone to proceed before TAT, they must pay 30% of the tax assessed regardless of the nature of their objection.

The learned Justices of the Constitutional Court sought to restrict this application in *FUELEX v URA

"S15 does not extend to instances where the tax payer contends that. 1. They’re exempted, 2.They have obtained a waiver, 3.They’re not a tax payer in Uganda, or 4.That the assessment in issue is founded upon wrong or non existent law.

In such instances, TAT is required to first make a determination on the question as to whether the objector is in fact a “Tax payer” for purposes of the assessment in question”

Also note that Supreme Court decision is still binding until the Supreme Court itself revises this decision.

HOLDING ONTO AN OUT DATED LOG BOOK

To the left is the old Car log book, to the right is the new electronic log book.

In 2012, Uganda moved from a manual to an electronic motor vehicle system and all car owners were required to validate their old green log books and acquire an e-log book.

Before paying for that car, especially series below UAR, ensure that the seller has a new log book.

For those holding onto the old out dated log books, getting the new log book is simple, fast and easy. Do not wait until you have an urgent transaction as this can become frustrating.

WHAT DOES FILING A TAX RETURN MEAN?

It means informing the tax man about the performance of your business on any particular tax head.

Simply put, i sold this much or I provided services to this many people, at this price and spent so much.

For example, if you are in whole sale business, you simply state your sales in the period, e.g. I sold 1,000 bags of rice at 100,000 each making sales of 100m and then state your expenses like rent, labour costs, storage costs..etc. This will enable you to come up with your profit and tax payable.

For tax heads like VAT, you simply state your sales and VAT charged on each sale (18%) and remit the 18% to URA.

There is certainly some accounting involved in income tax returns. This includes preparing Balance Sheets and profit and loss accounts.

In general terms, filing a return simply means declaring your business performance to the Tax Authority.