The Uganda Revenue Authority (URA) has reported a 10% decline in tax objections filed during the 2023/2024 financial year – reducing from 45% to 35%. This improvement is attributed to proactive measures undertaken by the authority to refine tax assessments and enhance dispute resolution mechanisms. In the previous financial year, URA recorded 19,970 tax objections, with disputed amounts totaling UGX 207.5 billion and the discharged amount reaching UGX253.7 billion. The discharge rate stood at 35%, with an average resolution period of 57 days. Disputed cases were resolved through three possible outcomes: disallowance, approval, or partial resolution. Ruth Anne Agwang, URA’s Manager of Objections, credited the reduction in objections to the authority’s commitment to stakeholder sensitization and improved feedback mechanisms. “We are committed to enhancing the accuracy of assessments,†Agwang stated, emphasizing that URA is working to prevent erroneous claims arising from misinterpretations of facts or tax laws. According to Agwang, the most frequent causes of tax objections include discrepancies from unreconciled audit findings, limited awareness of tax obligations, and varying interpretations of tax laws. The most commonly disputed taxes include Income Tax, Value Added Tax (VAT), Pay As You Earn (PAYE), local excise duty, and withholding tax. Agwang also stressed the importance of filing accurate tax returns. “We urge taxpayers to ensure their filings genuinely reflect their business operations,†she noted. For disputes escalating to legal proceedings, Agwang advocated for out-of-court settlements. “These resolutions not only save time and resources but also create mutually beneficial outcomes for both taxpayers and the authority,†she explained. Uganda’s legal framework governing tax objections and appeals includes the Tax Procedures Code Act 2014, the East African Community Customs Management Act 2004, and the Tax Appeals Tribunal Act, Cap 345. Under current regulations, taxpayers have 45 days to file an objection if dissatisfied with an assessment. If unresolved, they can seek alternative dispute resolution or escalate their appeals to the Tax Appeals Tribunal, the High Court, the Court of Appeal, and ultimately, the Supreme Court. By advocating for amicable settlements and encouraging accurate tax reporting, URA aims to expedite dispute resolution, ensuring efficiency and compliance for both taxpayers and the authority.
