Mobile money companies, agents on the spot over tax non-compliance

In the letter written to the governor of the Bank of Uganda, John Musinguzi, the URA commissioner general, said their analysis of mobile money and banking financial services found that many agents are not being taxed.

“In a bid to ensure tax compliance, we appeal to you to ensure that all commercial banks and mobile money financial service providers operating digital wallets register for taxes in accordance with the law and require them to regularly publish and update the lists of their banking and mobile money agents on their websites," Musinguzi wrote.

URA takes six percent of each commission an agent earns from each transaction. Financial agencies collect the money and send it to tax collectors.

Ibrahim Bbosa, the URA assistant commissioner for public corporate affairs, said the new exercise is aimed at closing gaps in tax compliance. He said they want to know the person the financial agencies are getting taxes from to have proper accountability.

"There are some agents who haven’t been registered for tax meaning either they don’t have TIN numbers or when the telecoms withdraw, they don’t submit the revenue with identifiable TIN numbers," Bbosa said.

Richard Yego, the MTN Mobile Money chief executive officer, said they would comply with the new standards. However, he noted that publishing the list of their agents may attract a lawsuit over privacy issues and fraudsters.

"We have been withdrawing. It is just we have not been attaching the TIN (Tax Identification Number)" Yego said.

Wilbrod Owor, the executive director of the Uganda Bankers Association, said they are ready to comply.