TAX PROCEDURES CODE ACT.

An Act to provide for a Code to regulate the procedures for the administration of specified tax laws in Uganda; to harmonise and consolidate the tax procedures under existing tax laws; and to provide for related matters.

PART I
PRELIMINARY.

1. Commencement.

This Act shall come into force on a date appointed by the Minister, by statutory instrument.

2. Application.

This Act shall apply to every tax law specified in Schedule 2.

3. Interpretation.

In this Act, unless the context otherwise requires—

"additional assessment" means an additional assessment made by the Commissioner under section 23;

"advance assessment" means an advance assessment made by the Commissioner under section 22;

"Authority" means the Uganda Revenue Authority established by the Uganda Revenue Authority Act;

"business information return" means a return required to be furnished under section 130 of the Income Tax Act;

"Commissioner" means the Commissioner General appointed under the Uganda Revenue Authority Act;

"Committee" means the Tax Agents Registration Committee established under section 7;

"currency point" has the meaning assigned to it in Schedule 1;

"default assessment" means a default assessment made by the Commissioner under section 21;

"due date" means the date by which a tax obligation must be fulfilled under this Act;

"listed institution" has a meaning assigned to it in the Income Tax Act;

"Minister" means Minister responsible for finance;

"objection decision" means a decision within the meaning of section 24;

"occupier" in relation to premises or a place means the owner, manager, or any other person lawfully in the premises or place;

"penal tax" means a tax imposed as a penalty for failure to perform an act required by or under a tax law;

"person" has the same meaning as in the Income Tax Act;

"record" includes—

(a) a book of account, document, paper, register, bank statement, receipt, invoice, voucher, contract and agreement, or customs declaration; or

(b) any information or data stored on a mechanical or electronic data storage device;

"registration threshold" has the meaning in section 7(2) of the Value Added Tax Act;

"self-assessment" means an assessment treated as having been made by a taxpayer under section 20;

"self-assessment return" means a return made in accordance with sections 16 and 20;

"statutory rate", in relation to a period, means the Bank of Uganda discount rate at the commencement of that period;

"tax" means a tax imposed under a tax law and includes withholding tax and provisional tax;

"tax agent" means a person registered as a tax agent under this Act;

"tax assessment" means a self-assessment, default assessment, advance assessment, or additional assessment;

"tax decision" means—

(a) a tax assessment; or

(b) a decision on any matter left to the discretion, judgment, direction, opinion, approval, satisfaction or determination of the Commissioner, other than a decision made in relation to a tax assessment;

"tax law" means a law specified in Schedule 2;

"tax obligation" means any duty expected of a taxpayer under a tax law and includes registration, filing and payment of a tax liability;

"tax officer" means the Commissioner and an officer of the Authority appointed under the Uganda Revenue Authority Act;

"taxpayer" means a person liable for tax under a tax law and includes—

(a) for the income tax, a person who has zero chargeable income or an assessed loss for a year of income; or

(b) for the VAT, a taxable person whose total input tax credits for a tax period are equal to or exceed the person's total output tax for the period;

"tax period" means—

(a) in the case of the income tax—

(i) for the purposes of withholding tax, the period to which the withholding relates;

(ii) for the purposes of provisional tax, the period to which the provisional tax relates; or

(iii) for any other purposes, the year of income;

(b) in the case of VAT, the tax period under the Value Added Tax Act; or

"tax representative" means—

(a) for an individual under a legal disability, the guardian or manager who receives or is entitled to receive income on behalf, or for the benefit of that natural person;

(b) for a company, the chief executive officer, managing director, or any director of the company;

(d) in the case of a trust, a trustee of the trust;

(e) in the case of the Government or local government in Uganda, the individual responsible for accounting for the receipt or payment of moneys or funds on behalf of the Government or local government;

(f) in the case of a foreign government, political subdivision of a foreign government, or a listed institution, any natural person responsible for accounting for the receipt or payment of moneys or funds in Uganda on behalf of the government, political subdivision of the government, or listed institution; and

(g) in the case of a nonresident person, the individual controlling the person's affairs in Uganda, including a manager of a business of that person or any representative appointed by the person in Uganda;

"tax return" means a return or other document listed in Schedule 3;

"transaction information" means information relating to a transaction in respect of which a record is made;

"TIN" means a Tax Identification Number issued to a registered taxpayer;

"Tribunal" means the Tax Appeals Tribunal established by the Tax Appeals Tribunal Act;

"unpaid tax" means tax that has not been paid by the due date, but does not include tax that is the subject of an objection and that is not required to be paid until the objection is finally decided;

"VAT" means Value Added Tax; and

"withholding tax" means any tax that a withholding agent is required to deduct from a payment to a payee.

PART II
REGISTRATION OF TAXPAYERS.

4. Registration.

(1) A person liable to pay tax under a tax law shall apply to the Commissioner for registration in the prescribed manner.

(2) The application shall be accompanied by the prescribed evidence of the person's identity.

(3) The Commissioner shall register a person who has applied for registration if satisfied that the person meets the requirements for registration.

(4) Where the Commissioner refuses to register a person who has applied for registration, the Commissioner shall serve that person with written notice of the refusal within 14 days after the refusal, stating the reasons for refusal.

(5) Where a person applies for registration as required under a tax law, the Commissioner may use the information provided for the registration for the purposes of this Act without requiring the person to furnish the same particulars under this Act.

(6) Despite subsection (5), the Commissioner may request a person to provide any further information necessary to complete the registration of the person under this Act.

5. Tax Identification Number.

(1) Upon registration, the Commissioner shall issue to every person registered a Tax Identification Number, TIN.

(2) The Commissioner shall issue one TIN to each person registered.

(3) The TIN issued by the Commissioner shall be used for tax purposes under all tax laws.

(4) A person shall state that person's TIN on any return, notice, communication, or other document furnished, lodged, or used for the purposes of a tax law.

(5) Subject to subsection (6), a TIN is personal to the person to whom it has been issued and shall not be used by another person.

(6) The TIN of a registered taxpayer may be used by a registered tax agent if—

(a) the person has given written permission to the registered tax agent to use the TIN on their behalf; and

(b) the registered tax agent uses the TIN only in respect of the tax affairs of the taxpayer.

(7) The Commissioner shall by notice in writing, cancel a TIN if satisfied that—

(a) the person is deregistered for the purposes of all tax laws;

(b) a TIN has been issued to the person under an identity that is not that person's true identity; or

(8) The Commissioner may, at any time, by notice in writing, cancel the TIN issued to a person and issue the person with a new TIN.

6. Deregistration.

(1) A person who is no longer required to be registered for the purposes of a tax law may, in the prescribed manner, apply to the Commissioner to be deregistered.

(2) The Commissioner shall by notice in writing, deregister a person if—

(a) that person has applied for deregistration and the Commissioner is satisfied that the person is no longer required to be registered; or

(b) that person has not applied for deregistration but the Commissioner is satisfied that the person is eligible for deregistration.

(3) Deregistration takes effect from the date specified in the notice of deregistration.

(4) A person who is deregistered shall comply with any requirements relating to deregistration as specified under the tax law to which the registration relates.

PART III
TAX AGENTS AND TAX REPRESENTATIVES.

Registration of tax agents.

7. Tax Agents Registration Committee.

(1) There shall be a Tax Agents Registration Committee to handle registration, renewal of registrations and cancellation of tax agent's registration.

(2) The Committee shall comprise of the following members—

(a) the Commissioner General, or his or her representative for purposes of this Act, who shall be the Chairperson;

(b) one representative from the accountancy profession nominated by the Institute of Certified Public Accountants of Uganda;

(d) two members from the private sector with expertise or relevant experience in economics, finance or taxation who shall be appointed by the Board of the Uganda Revenue Authority.

(3) The Commissioner shall receive and maintain a register of all registered tax agents.

(4) In exercise of its functions under this Act, the Committee shall make rules to govern its own procedure.

8. Tax agents.

(1) An individual, partnership, or company may apply to the Committee for registration as a tax agent.

(2) An application for registration as a tax agent under subsection (1) shall be in the prescribed form and shall be accompanied by the prescribed fee.

(3) For purposes of this Act, a tax agent is a person engaged—

(a) in the preparation, certification, and filing tax returns, information returns or other statements or reports required by the Authority;

(b) in the preparation of requests for ruling, petitions for reinvestigation, protests, objections, requests for refund or tax certificates, compromise settlements and/or abatement of tax liabilities and other official papers and correspondences with the Authority;

(c) in meetings and hearings on behalf of the taxpayer in all matters relating to a taxpayer rights, privileges or liabilities under the laws or regulations administered by the Authority.

9. Registration of tax agents.

(1) In the case of an application by a natural person, the Committee shall register the applicant if satisfied that the applicant is a fit and proper person to prepare tax returns and transact business with the Committee under the tax laws on behalf of taxpayers.

(2) In the case of an application by a partnership or a company, the Committee shall register the applicant if satisfied that—

(a) the partner or employee specified in the application as the nominee of the partnership or company respectively is a fit and proper person to prepare tax returns and transact business with the Commissioner under a tax law on behalf of a taxpayer; and

(b) a partner in the partnership or a director, manager or other executive officer of the company is of high integrity and good character.

(3) An individual applying for registration as a tax agent, or in the case of an application by a partnership or company, the partner or employee specified as the nominee of the partnership or company respectively, shall meet the following requirements—

(a) have been awarded a degree or a post-graduate award from an approved tertiary institution in the discipline that is relevant for the provision of tax agent services; or

(b) have successfully completed a course in taxation that is recognised by the Tax Registration Committee; or

(c) in the coming into force of this Act, have been engaged in the equivalent of 24 months of full time tax practice in the preceding five years.

(4) The registration of a tax agent shall remain in force for 12 months from the date of registration.

(5) The Commissioner shall notify the applicant of the decision on the application.

(6) This section does not apply to an advocate acting as an advocate to a taxpayer.

10. Renewal of registration.

(1) A tax agent may apply to the Committee for the renewal of the tax agent's registration.

(2) An application under subsection (1) shall be in the prescribed form and shall be accompanied by the prescribed fee.

(3) The application shall be submitted to the Committee within 21 days before the date of expiry of the tax agent's registration or a later date allowed by the Committee.

(4) The Committee shall renew the registration of a tax agent who has applied under subsection (1) if the tax agent still meets the requirements for registration.

(5) The Committee shall in writing notify the applicant of the decision on the application to renew registration.

11. Registration of additional or substituted tax agents.

(1) A partnership or company registered as a tax agent may apply to the Committee, in the prescribed form and accompanied by the prescribed fee, to register a partner of the partnership or an employee of the company as an additional or substituted tax agent.

(2) The Committee shall register the person nominated under subsection (1) if satisfied that the person is a fit and proper person to prepare tax returns and transact business with the Committee under a tax law on behalf of a taxpayer.

(3) The Committee shall in writing notify an applicant under this section of the decision of the Committee on the application.

12. Notice of change in registered particulars.

(1) A partnership that is registered as a tax agent shall notify the Committee, in writing, if—

(a) there is a change in the composition of the partnership, within seven days after the change in composition; or

(b) the partnership is going to be dissolved within, seven days before the dissolution of the partnership.

(2) A company that is registered as a tax agent shall notify the Committee, in writing, if—

(a) a registered nominee ceases to be an employee of the company or a person becomes a director, manager, or other executive officer of the company, within seven days after the employee ceases to be employed, or the person becomes a director, manager or other executive officer; or

(b) the company is going into liquidation within seven days before the company goes into liquidation.

13. Cancellation of tax agent's registration.

(1) A tax agent that ceases to carry on business as a tax agent shall notify the Committee, in writing, within seven days after ceasing to carry on business as a tax agent.

(2) A tax agent may apply to the Committee, in the prescribed form to cancel the registration of the agent where the agent no longer wishes to be registered as a tax agent.

(3) The Committee may cancel the registration of a tax agent if the Committee is satisfied that—

(a) in the case of an individual, the person is no longer a fit and proper to prepare tax returns and transact business with the Committee under the tax laws on behalf of a taxpayer;

(b) in the case of a partnership, the additional or nominated partner has ceased to be a partner in the partnership or the partnership has applied to the Committee to cancel the registration of the partner;

(c) in the case of a company, the person nominated has ceased to be employed by the company or the company has applied to the Committee to cancel the registration of the employee;

(d) a tax return prepared and delivered by the tax agent is false in any material particular, unless the tax agent establishes to the satisfaction of the Committee that it was not due to any wilful or negligent conduct of the tax agent;

(e) the tax agent has ceased to meet the requirements for registration as a tax agent; or

(f) the tax agent has ceased to carry on business as a tax agent.

(4) The Committee shall give notice, in writing, to a tax agent of a decision to cancel the registration of the tax agent or a nominee of the tax agent.

(5) The cancellation shall take effect from the date specified in the notice.

Tax representatives.

14. Liabilities and obligations of a tax representative.

(1) A tax representative is responsible for performing any duty or obligation imposed by a tax law on the taxpayer, including the submission of tax returns and payment of tax.

(2) If there are two or more tax representatives of a taxpayer, the obligations referred to in this section apply jointly and severally to the agents but may be discharged by any of them.

(3) A tax representative making a payment of tax on behalf of a taxpayer is to be treated as acting under the authority

This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.

{{{_source.title}}} {{#_source.showPrice}} {{{_source.displayPrice}}} {{/_source.showPrice}}