The Uganda Revenue Authority (URA) has recorded a 10% decline in tax objections for the 2023/2024 financial year, attributing the drop to proactive measures aimed at enhancing tax assessments and dispute resolution. The rate of objections fell from 45% to 35%.
In the previous financial year, URA received 19,970 tax objections, with the total disputed amount standing at Shs207.5 billion, while Shs253.7 billion was discharged. The discharge rate was 35%, with most cases being resolved within an average of 57 days. These disputes typically resulted in one of three outcomes: full rejection, approval, or partial acceptance.
Ruth Anne Agwang, URA’s Manager of Objections, linked the reduction in tax disputes to sustained stakeholder sensitisation and the implementation of structured feedback mechanisms.
“We are committed to improving the quality of assessments,” Agwang said, noting that URA is pushing its assessment teams to avoid basing claims on incorrect facts or legal misinterpretations.
She outlined common reasons for tax objections, including discrepancies from unreconciled audit findings, lack of awareness of tax obligations, and varying interpretations of tax statutes. The most frequently disputed taxes include Income Tax, Value Added Tax (VAT), Pay As You Earn (PAYE), local excise duty, and withholding tax.
Agwang urged taxpayers to file accurate and truthful returns. “We encourage taxpayers to ensure their returns reflect the true state of their business activities,” she said.
For disputes that escalate to court, she advocated for out-of-court settlements.
“Such settlements not only save time and resources but also create a win-win outcome for both the taxpayer and the authority,” Agwang explained.
Uganda’s legal framework for 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 existing regulations, taxpayers dissatisfied with an assessment have 45 days to file an objection. If unresolved, they can pursue alternative dispute resolution mechanisms and escalate their appeals to the Tax Appeals Tribunal, the High Court, the Court of Appeal, and ultimately the Supreme Court.
By encouraging alternative dispute resolution and promoting accurate tax reporting, URA aims to streamline the resolution of tax disputes, benefitting both taxpayers and the authority.