URA launches “Kakasa” tax compliance campaign
BY AMBROSE GAHENE
Uganda Revenue Authority (URA) has embarked on implementing a series of new resource mobilization initiatives, aimed at identifying and facilitating eligible citizens and economic players to contribute to the revenue basket.
URA officials have said the tax body is implementing two new smart business solutions, each rooted in their understanding of the concerns of the business community.
These include: the Digital Tracking Solution, and the Electronic Fiscal Receipting and Invoicing System (EFRIS).There is also the voluntary disclosure olive branch extended to fellow-citizens who do not pay tax, an invitation that they become part of URA growing tax-paying family.It is for this agenda that an integrated communication and marketing Campaign dubbed “KAKASA which is translated as “You’re in charge” has been designed.
Through the promotion of the KAKASA campaign, URA will help usher in a new approach to doing business, allowing business men and women across Uganda to take full charge of their business destiny from production, importation, consumption and through to record keeping. The Commissioner General URA, John Rujoki Musinguzi, said the campaign is aimed at cementing the tax body’s mission and positioning her as a trusted listening partner, business enabler and service centric Organisation passionate about the growth and development of all Ugandans.
“Across the business community we aim to create awareness and then boost the adoption of the three business solutions of EFRIS, Voluntary Disclosure and Digital Tracking Solutions,” said Musinguzi. He encouraged the business community to be tax-alert and look at tax as part of a legitimate business expense and not as a burden.In embracing the three business solutions, Musinguzi said business men and women should no longer face tax-associated challenges.
KAKASA business solutions are meant to level taxpaying landscape by identifying and facilitating all eligible citizens and economic players to join Uganda’s growing family of compliant taxpayers. URA pledged to pardon taxpayers through voluntary disclosure.
He further said voluntary disclosure is more flexible and cost-efficient because it does away with litigation costs, time-effective, and gives both parties more control over the process and the results unlike arbitration.
“Our aspiration is to mobilise enough revenue for comprehensive national development for this and future generations, a journey we are appealing to all Ugandans to take with us on this campaign, “he pointed out.
KAKASA campaign is therefore a behavioral change campaign that will be revealed through a character called KAPO, set to inform, persuade and motivate behaviour changes among Ugandans.
According to the officials, URA currently funds 47 per cent of the national budget with a tax to GDP ratio of 13 per cent, which is below the average Sub-Saharan Africa performance of 16 per cent.
URA officials say; the introduction of e-receipting and invoicing is aimed at addressing challenges including suppression of sales where some businesses, especially those that deal in general goods, were avoiding generating receipts and so their actual turnover was not reflected in their tax returns. Other challenges that will be solved by the introduction of the system include; on issuance of tax receipts / invoices, false refund and offset claims, fictitious purchases with no physical movement of goods among others. The Commissioner Gazette taxpayers for whom it shall be mandatory to use EFRIS and official said it is mandatory for all Value added Tax (VAT) registered taxpayers to enroll on the system.
However, those outside this category are advised to implement EFRIS and take advantage of the various benefits. The taxpayer accesses the EFRIS link on the web portal https://www.ura.go.ug
When a sale is made, transactional details are captured in the seller’s invoicing system (ERP) or point of sale, encrypted and transmitted to URA in real time to generate e-receipts and e-invoices.Upon receipt of the transactional details, EFRIS decrypts the data and formats it into an e-receipt or e-invoice by attaching key features like the fiscal document number, a verification code, a quick response code among others.
E-invoicing: The e-invoicing component supports issuance and storing of invoice information (Billing and charges) in an electronic format through; system to system connections, the URA web portal, the Desktop (Client Application) among others.
Electronic Fiscal Device (EFD): This is a device with full proof or inaccessible fiscal memory certified by a tax authority used to efficiently manage and control sales. Electronic Dispenser Controller (EDC); is specifically designed to manage fuel and gas stations., Taxpayers who cannot afford to purchase an EFD or ERP system are advised to use either the URA web portal or the Desktop Application.
Refund claims using e-receipts or e-invoices shall be fast-tracked given that the information shall be available in the system.This is a step in enabling URA avail taxpayers with prefilled tax returns in future to minimize delays and costs involved in filing tax returns.
Registration: All persons registered with URA have an EFRIS account and can access it with their registered TIN and password. Stocking Management; is where the stock management process starts with product /service configuration, where the taxpayer selects all the products/services that they deal in from the EFRIS product list. In respect to information security, URA has a statutory duty under the TPC Act, 2014 to keep taxpayer’s information confidential. As a result, URA’s data management policies and procedures always give priority to information security and access to data internally, defined according to users and access levels.
Section 73B of the Tax Procedures Code Act 2014 spells out these penalties which include; A taxpayer specified in the gazette, for whom it shall be mandatory to use EFRIS and does not adopt the use of EFRIS is liable to pay a penal tax equivalent to the tax due on the goods or services, or four hundred currency points, whichever is higher Other penalties are; a taxpayer specified in the gazette, for whom it shall be mandatory to use E
FRIS and does not issue an e-receipt or e-invoice or tampers with an EFD is liable to pay a penal tax equivalent to the tax due on the goods or services or three hundred currency points, whichever is higher.