Uganda Revenue Authority has called on the financial regulatory bodies, supervisory agencies and umbrella associations to execute their role in the implementation of the Automatic Exchange of Information.

The Convention on Mutual Administrative Assistance in Tax Matters, Implementation Act 2023 obligates the financial bodies, agencies and associations to supervise and regulate financial entities in regards to voluntary compliance to the AEOI.

The Commissioner Tax Investigations, Denis Kugonza informed delegates at an implementation engagement at URA headquarters on Tuesday that the new law is intended to counter tax evasion.

“This law is intended to counter tax evasion, money laundering and illicit financial flows through international cooperation and exchange of information for tax purposes. There are more than 172 countries participating in this initiative globally.”

He identified the entities that are subject to reporting requirements.

“The law defines certain entities which are subject to certain reporting requirements, that is banks, custodial institutions, investment entities and specified insurance companies. Therefore, URA seeks to partner with you to facilitate the implementation of this newly enacted law,” Kugonza said.

The URA official noted that many taxpayers hold assets and financial instruments abroad which undermines the tax system. “This situation not only undermines the tax system, it also undermines the strength and soundness of Uganda’s financial system through facilitating all forms of money laundering, speculation in the money markets, illegitimate trade, among others.”

Kugonza explained that through the AEIO, URA will be able to increase the tax base by onboarding those with offshore assets.

African Tax Administration Forum – ATAF official, Melissa de Jong applauded the Uganda government for enacting the law on AEOI saying that the law has changed the world in really impressive and important ways.

“The law was started around the world, and countries and citizens have recognized that tax evasion robs people of resources and undermines fairness because the compliant taxpayers pay and those that are not paying get away with it,” noted Melissa.

Uganda expects to implement the Automatic Exchange of Information in 2025. Currently, Uganda receives information on request.

By Kamugisha Kabahweza Allan