The United Nations Economic Commission for Africa (UNECA) and Uganda Revenue Authority has concluded a one-day workshop at the Protea Hotel by Marriott, Kampala. The workshop focused on enhancing tax revenues through reduced profit shifting by multinational enterprises (MNEs).

Attended by tax experts, policymakers, and stakeholders, the event showcased findings from UNECA’s ongoing study on profit shifting in Uganda, which aims to address tax losses from this practice and enhance domestic revenue mobilization.

The study, conducted with tax administrative data from the URA Research Lab, examines how MNEs engage in profit shifting, the key actors involved, and the estimated tax losses Uganda incurs due to these practices.

Gerald Agaba and Professor Ron Davies discussed preliminary findings and offered actionable recommendations to guide policymakers on closing tax loopholes and reducing the harmful effects of profit shifting on Uganda’s economy. The insights included best practices such as strengthening tax administration and fostering greater international collaboration to effectively address profit shifting.

“The findings from this study are not just academic. We are committed to working with UNECA and other stakeholders to implement these recommendations and build a stronger fiscal base for our country,” said Agaba.

Douglas Bitonda Kigabo, UNECA representative, emphasized that the study is essential in helping Uganda combat profit shifting, which undermines the country’s ability to generate revenue necessary for development.

They also noted that the research aligns with the recent directives from the Conference of African Ministers of Finance and Economic Planning (COM 2024), which urged African nations to enhance tax policy, improve international tax cooperation, and curb illicit financial flows (IFFs)

Robert Luvuma, Manager Tax Academy specialized programmes, noted that the research’s ability to drill down to the actual taxpayer is a significant achievement. It provides a great opportunity for our local team to continue valuable research.

Gerald Namoma, the Principal Economist, Ministry of Finance, Planning and Economic Development (MoFPED) appreciated UNECA for study and urged URA to use the provided data to raise more revenue.

By Abdullah Rabiiba