Act 14 Tax Procedures Code Act 2014 - Uganda …

1 ACTSSUPPLEMENT No. 824th October, SUPPLEMENTto The Uganda Gazette No. 61 Volume CVII dated 24th October, by UPPC, Entebbe, by Order of the 14 Tax Procedures Code Act2014 THE TAX Procedures CODE ACT, OF SECTIONSS ectionPARTI PRELIMINARY1. Registration5. Tax identification of tax Tax Agents Registration Tax Registration of tax Renewal of Registration of additional or substituted tax Notice of change in registered Cancellation of tax agent s Liabilities and obligations of a tax Accounts and Furnishing of tax Certification of tax return by tax Power of the Commissioner to require tax returns in certain Extension of time to furnish a tax TAXASSESSMENTS20. Default Advance Additional OBJECTIONSANDAPPEALS24. Objection to a tax Review of an objection decision 26. Burden of COLLECTIONANDRECOVERY OFTAXTax collection27. Payment of Extension of time to pay Tax as a debt due to the Government of tax collection30.

2 Collection of tax from persons leaving Uganda Recovery of tax through persons owing money to the Distress Temporary closure of Charge over immovable Seizure of Security for unpaid Priority of withholding tax and Order of on late payments39. Recovery of interest on unpaid 14 Tax Procedures Code Act2014 SectionPARTIX REMISSION Remission of Access to premises, records and data storage Notice to obtain information or Tax clearance Notes44. Practice Private tax48. Penal tax for default in furnishing a tax Penal tax for failing to maintain proper Penal tax for making false or misleading Penal tax for understating provisional tax Penalty for failing to apply for Recovery of penal 14 Tax Procedures Code Act2014 SectionPARTXV Failing to furnish a tax Failure to comply with obligations under this Failure to maintain proper Use of false Making false or misleading Obstructing a tax Aiding or abetting a tax Offences relating to recovery of Offences relating to Offences in relation to tax Offences by bodies of Tax officer may appear on behalf of Compounding of Tax charged to be paid despite MISCELLANEOUS68.

3 Validity of tax Rectification of a Forms, notices, and authentication of Approved or prescribed Manner of furnishing documents or service of Electronic returns and Appeal from the decision of the Amendment of Transitional 1 Currency pointSCHEDULE 2 Tax lawsSCHEDULE 3 Amount of turnover in respect of which audited financialstatemnets are required4 Act 14 Tax Procedures Code Act2014 THE TAX Procedures CODE ACT, 2014An Act to provide for a Code to regulate the Procedures for theadministration of specified tax laws in Uganda ; to harmonise andconsolidate the tax Procedures under existing tax laws; and toprovide for related OFASSENT: 19th October, of Commencement: See section IT ENACTEDby Parliament as follows:PARTI PRELIMINARY1. Act shall come into force on a date appointed by the Minister, bystatutory Act shall apply to every tax law specified in Schedule this Act, unless the context otherwise requires additional assessment means an additional assessment madeby the Commissioner under section 23; advance assessment means an advance assessment made bythe Commissioner under section 22;5 Act 14 Tax Procedures Code Act2014 Authority means the Uganda Revenue Authority establishedby the Uganda Revenue Authority Act; business information return means a return required to befurnished under section 130 of the Income Tax Act; Commissioner means the Commissioner-General appointedunder the Uganda Revenue Authority Act;Committee, means the Tax Agents Registration Committeeestablished under section 7; currency point has the meaning assigned to it in Schedule 1.

4 Default assessment means a default assessment made by theCommissioner under section 21; due date means the date by which a tax obligation must befulfilled under this Act; listed institution has a meaning assigned to it in the IncomeTax Act; Minister means Minister responsible for finance; objection decision means a decision within the meaning ofsection 24; occupier in relation to premises or a place means the owner,manager, or any other person lawfully in the premises orplace; penal tax means a tax imposed as a penalty for failure performan 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, bankstatement, receipt, invoice, voucher, contract andagreement, or Customs declaration; or6 Act 14 Tax Procedures Code Act2014(b) any information or data stored on a mechanical orelectronic data storage device; registration threshold has the meaning in section 7(2) of theValue Added Tax Act; self-assessment means an assessment treated as having beenmade by a taxpayer under section 20; self-assessment return means a return made in accordancewith section 16 and 20; statutory rate , in relation to a period, means the Bank ofUganda discount rate at the commencement of that period; tax means a tax imposed under a tax law and includeswithholding tax and provisional tax; tax assessment means a self assessment, default assessment,advance assessment, or additional assessment ; tax agent means a person registered as a tax agent under thisAct; tax decision means (a) a tax assessment.

5 Or(b) a decision on any matter left to the discretion, judgment,direction, opinion, approval, satisfaction ordetermination of the Commissioner, other than adecision 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 atax law and includes registration, filing and payment of atax liability;7 Act 14 Tax Procedures Code Act2014 tax officer means the Commissioner and an officer of theAuthority appointed under the Uganda Revenue AuthorityAct; taxpayer means a person liable for tax under a tax law andincludes (a) for the income tax, a person who has zero chargeableincome or an assessed loss for a year of income; or (b) for the VAT, a taxable person whose total input taxcredits for a tax period are equal to or exceed theperson 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 towhich the withholding relates; (ii) for the purposes of provisional tax, the period towhich 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 ValueAdded Tax Act; or(c) in any other case, the period for which the tax isreported; tax representative means (a)for an individual under a legal disability, the guardianor manager who receives or is entitled to receiveincome on behalf, or for the benefit of that naturalperson;(b) for a company, the chief executive officer, managingdirector, or any director of the company;8 Act 14 Tax Procedures Code Act2014(c) for a partnership, a partner in the partnership;(d) in the case of a trust, a trustee of the trust.

6 (e) in the case of the Government or local Government inUganda, the individual responsible for accounting forthe receipt or payment of moneys or funds on behalfof the Government or local Government;(f) in the case of a foreign government, politicalsubdivision of a foreign government, or a listedinstitution, any natural person responsible foraccounting for the receipt or payment of moneys orfunds in Uganda on behalf of the government, politicalsubdivision of the government, or listed institution;and(g) in the case of a non-resident person, the individualcontrolling the person's affairs in Uganda , including amanager of a business of that person or anyrepresentative appointed by the person in Uganda ; tax return means a return or other document listed in the Thirdschedule; transaction information means information relating to atransaction in respect of which a record is made; TIN means a Tax Identification Number issued to a registeredtaxpayer; Tribunal means the Tax Appeals Tribunal established by theTax 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 objectionand that is not required to be paid until the objection isfinally decided;9 Act 14 Tax Procedures Code Act2014 VAT means Value Added Tax; and withholding tax means any tax that a withholding agent isrequired to deduct from a payment to a REGISTRATION OFTAXPAYERS4.

7 Registration.(1) A person liable to pay tax under a tax law shall apply to theCommissioner for registration in the prescribed manner.(2) The application shall be accompanied by the prescribedevidence of the person s identity.(3) The Commissioner shall register a person who has appliedfor registration if satisfied that the person meets the requirements forregistration. (4) Where the Commissioner refuses to register a person whohas applied for registration, the Commissioner shall serve that personwith written notice of the refusal within fourteen days after therefusal, stating the reasons for refusal. (5) Where a person applies for registration as required under atax law, the Commissioner may use the information provided for theregistration for the purposes of this Act without requiring the personto furnish the same particulars under this Act. (6) Despite subsection (5), the Commissioner may request aperson to provide any further information necessary to complete theregistration of the person under this Tax identification number.

8 (1) Upon registration, the Commissioner shall issue to everyperson registered a Tax Identification Number, TIN.(2) The Commissioner shall issue one TIN to each 14 Tax Procedures Code Act2014(3) The TIN issued by the Commissioner shall be used for taxpurposes 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 thepurposes of a tax law.(5) Subject to subsection (6), a TIN is personal to the person towhom it has been issued and shall not be used by another person.(6) The TIN of a registered tax payer may be used by a registeredtax agent if (a) the person has given written permission to the registeredtax agent to use the TIN on their behalf; and(b)the registered tax agent uses the TIN only in respect of thetax affairs of the tax payer.(7) The Commissioner shall by notice in writing, cancel a TIN ifsatisfied 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 thatis not that person s true identity; or(c) the person has been previously issued with a TIN that isstill in force.

9 (8) The Commissioner may, at any time, by notice in writing,cancel the TIN issued to a person and issue the person with a Deregistration.(1) A person who is no longer required to be registered for thepurposes of a tax law may, in the prescribed manner, apply to theCommissioner to be deregistered. 11 Act 14 Tax Procedures Code Act2014(2) The Commissioner shall by notice in writing, deregister aperson if (a) that person has applied for deregistration and theCommissioner is satisfied that the person is no longerrequired to be registered; or(b) that person has not applied for deregistration but theCommissioner is satisfied that the person is eligible forderegistration.(3) Deregistration takes effect from the date specified in thenotice of deregistration. (4) A person who is deregistered shall comply with anyrequirements relating to deregistration as specified under the tax lawto which the registration TAXAGENTSANDTAXREPRESENTATIVESR egistration of tax agents7.

10 Tax Agents Registration Committee.(1) There shall be a Tax Agents Registration Committee tohandle registration, renewal of registrations and cancellation of taxagent s registration.(2) The Committee shall comprise of the following members .(a)the Commissioner General, or his or her representative forpurposes of this Act, who shall be the Chairperson;(b)one representative from the accountancy professionnominated by the Institute of Certified Public Accountantsof Uganda ;12 Act 14 Tax Procedures Code Act2014(c) a representative from the legal profession nominated by theUganda Law Society; and(d) two members from the private sector with expertise orrelevant experience in economics, finance or taxation whoshall be appointed by the Board of the Uganda RevenueAuthority,(3) The Commissioner shall receive and maintain a register of allregistered tax agents.(4) In exercise of its functions under this Act, the Committeeshall make rules to govern its own Tax agents.