Fraud: How URA has lost a lot of revenue to tax defaulters
After Uganda Revenue Authority sent many reminders to the companies to pay their outstanding tax, the body took the necessary steps.
Among these, on 6th June 2014, URA finally published a list of the top companies that have deliberately failed to pay their outstanding tax dues.
URA has gone as far as imposing travel bans on the business men to move abroad. And by 26th June 2014, five tycoons were blocked by immigration from existing the country.
URA claims these businessmen have defrauded the tax body a lot of revenue.
This comes at a time donors suspended aid to Uganda and Uganda needs to relay on tax collections to fund the Ugx. 15.054 trillion budget for the financial year 2014/15.
The tax body says it has lost more Ugx25.8billion to over 178 tax defaulters.
The companies that owed the tax body the biggest amounts included: Rio Holdings International (Ugx5b), Linda Ka (Ugx414m), Key Stone Construction Ltd (Ugx475m) Akright Projects (Ugx659m), Taizhou Steel Industries Ltd (Ugx482m), Uganda Printing and Publishing Corporation (Ugx2b), Link Soft Communication Systems (U) Ltd (Ugx1.5b).
The tax defaulters were given a grace period of one week to settle their liabilities or show proof of payment by June 12 2014 but failed to clear the taxes.