URA Discloses Plans to Prosecute Corrupt Staff, Taxpayers

The Uganda Revenue Authority (URA) has revealed plans to legally pursue taxpayers and its staff involved in corrupt practices within the country’s tax administration system. This move is part of enhanced efforts to eliminate corruption and ensure integrity in tax collection.

URA Commissioner General John Musinguzi emphasized that integrity is the minimum standard required from all involved in tax administration. He added that the authority has established an independent department to hold staff accountable for integrity and moral issues, and has made integrity one of its core values.

Recognizing the complexity of fighting corruption, Musinguzi reiterated that the authority is committed to tackling the vice relentlessly. “We are aware that the corrupt fight is not an easy one, but it is one we cannot afford to lose. That’s why we have committed ourselves to integrity. Anyone who does not heed this call will face expulsion,” he stated.

Musinguzi also pointed out that taxpayers themselves are involved in corruption, as it requires both parties taxpayers and URA staff to perpetuate the vice. To address this, URA is enhancing its verification systems and eliminating non-credible middlemen, also known as container leaders, who have been facilitating tax fraud through misdeclaration and under-declaration. 

These individuals have harmed URA’s reputation, and Musinguzi confirmed that they will be removed from the system. In the past four years, URA has dismissed 140 staff members for corruption, with further investigations ongoing. Musinguzi made it clear that agents and taxpayers who facilitate corruption will also face prosecution, as allowed by law.

During an integrity forum with taxpayers, Musinguzi shared that Uganda’s tax base has grown from 1.7 million to 4.4 million taxpayers in the last four years, with a target of 10 million. He emphasized that tax rate reductions will only be considered once this goal is reached. 

“When we get to that number, we will engage the Ministry of Finance to recommend lowering tax rates. But discussing tax rate changes now, with a small taxpayer base and minimal revenue collection, is risky,” he said.

Charles Ekweu, the Director General of the Federation of Uganda Customs Agents and Freight Forwarders, acknowledged that some of their members are involved in corruption, as pointed out by Musinguzi. Ekweu stated that the association is working on addressing the issue by developing a code of conduct for members.

He explained that corruption is often initiated by taxpayers, particularly importers, and facilitated by URA staff who create opportunities for the vice. “Importers, please stop corrupting our members. Do the right thing. And for URA staff, stop creating opportunities for corruption. Our agents are not decision-makers in the authority,” he urged.

Paul Mugambe, Mayor of Nakawa Urban Division, commended URA for the improvements made in tax administration, particularly in making the tax collection approach more humane. He requested that URA forgive tax arrears for taxpayers who have transformed from evasion to compliance. “These people are now born again, and we should forgive their past mistakes and move forward,” he suggested.