Uganda employs a self-assessment tax system, where taxpayers calculate owed taxes, file returns, and make payments. URA conducts compliance audits to ensure accuracy. Disputes often start when URA issues additional assessments. It's advisable to address issues early through voluntary disclosure to prevent disputes.
For resolution, consider these steps:
- Objection: If dissatisfied with a decision, lodge an objection within 45 days. State grounds and provide evidence. URA responds within 90 days; if not, assume objection accepted.
- Tax Appeals Tribunal (TAT): If still unhappy, appeal to TAT within 30 days. You might seek more time (within six months) for appeal. Unsatisfied with TAT? Proceed to the High Court.
- Alternative Dispute Resolution (ADR): Agree with URA on resolving outside court through mediation or negotiation. ADR takes about two months. If unsuccessful, explore other options.
Remember:
- Pay 30% disputed tax to appeal to TAT, but a recent court decision might change this.
- Settlement benefits both parties and avoids prolonged court battles.
Understanding these simplified steps can help navigate the process of resolving tax disputes effectively in Uganda.