1. ETAX , CROSS DATA VERIFICATION & VAT
ETAX , CROSS DATA VERIFICATION & VAT. A CASE OF UGANDA ( CHILLANYANG CYPRIAN)

2. Implementation of cross data verification
TABLE OF CONTENT
Overview of E tax
Implementation of cross data verification
Status Report
Challenges / Learning points
Conclusion

3. OVERVIEW OF ETAX

4. E tax collects details of invoices where input tax credit is claimed.
IMPLEMENTATION
E tax collects details of invoices where input tax credit is claimed.
E tax cross verifies whether the seller has declared these invoices as sales
Auditor prompts E tax to generate mismatch reports. (BI and MIS reports)
Missing invoices are identified - assessment; audit or investigations sections
Taxpayers advised to amend their returns
Or additional assessments raised
Importantly, selection is data aided

5. Huge assessments (initially) Reduced refunds
STATUS REPORT
Huge assessments (initially)
Reduced refunds
Complemented expansion of taxpayers register (VAT & I.T) - 8%
Increased compliance:
VAT Collections
Filling ratio
Encourages T/P to purchase from compliant entities

6. COMPLAINCE DATA 5.

7. COMPLIANCE DATA Jan 2011- June 2011 Jan 2012 - June 2012 % growth
Jan June 2011
Jan June 2012
% growth
No. Of Taxpayers Registered in VAT
9,489
12,962 37
Filing Ratio(%) 75 81 8
VAT Revenue Collected
341,721,273,955
489,010,989,512 43
Tax Payable VAT Return Count
16,807
24,437 45
Tax Payable Liability
384,455,728,932
509,026,435,025 32

8. CHALLENGES / LEARNING POINTS
Fraud
Manipulation - sales to (non reg’d t/p) schedule
Conspiracy not to declare or to under declare
Taxpayers out of the E tax radar - informal sector
Government integration is weak
ID project
IFMS

9. Change management for staff
(CHALLENGES CONT’D)
Change management for staff
Actual issue audit
vetting invoices
Delay
Legal challenge ( delegation of duty)
Administrative, authenticity

10. Released staff from doing non productive work e.g. Issuing BPAFs
GENERALLY ETAX
Released staff from doing non productive work e.g. Issuing BPAFs
Makes enforcement easy
Simplifies tax management
Self service for taxpayers

11. The end Thank you
Wednesday, October 30, 2019

12. URA to fund 75% of the national budget
COUNTRY REPORT
URA to fund 75% of the national budget
Deregistration of Oil prospecting firms from VAT
the supply of betting, lotteries and games of chance. (Exempt from STD rate)
Any learning points

13. CHALLENGES (CONT’D)
1. Government integration is still weak. URA are unable to access information easily because of widely disparate levels of technology and business process maturity; this puts a limit on what we can achieve. National ID project

14. CHALLENGES (CONT’D)
2. There is still a very poor taxpaying culture in Uganda even amongst the more educated citizenry! it remains a challenge for our “post-fact” taxes - such as VAT & I.T, which are collected after the event that created the taxable value as compared to taxes that are collected before value is delivered (Customs, NTR, PAYE). Conspiracy not to or to under declare

15. CHALLENGES (CONT’D)
3. Literacy levels are still quite low and this tends to narrow our tax base; there is a natural tendency to tax those who understand us. Nevertheless we fight this tendency by working on the other areas too, but this coupled with no. 1 above drives up the cost of revenue administration as both education and compliance management activities are stepped up.

16. CHALLENGES
4. The structure of our economy is still largely subsistence and reliant on hard to tax sectors like agriculture and heavily incentivised. Zero rate and Exempt Taxpayers out of the E tax radar

17. Any points related to VAT and e-tax that we would be eager to share.
LEARNING POINTS
Any points related to VAT and e-tax that we would be eager to share.
May be sharing benefits of eTAX such as;
Standardised report for analysis. Elaborate
Reduced cost of doing business - for who?

18. WAY FORWARD

19. Cooperation (Not clear). Partnerships and more
CHALLENGES
Cooperation (Not clear). Partnerships and more
Legal: have we been challenged? Did we have to make any policy change?
Legal Department is in better position to answer this
Any policy changes: Yes; Section 68A,B, C..... were introduced in 2008 to support use of information technology
c. Etc

20. Conspiracy not to or under declare (to non-registered).
CHALLENGES
Conspiracy not to or under declare (to non-registered).
Infrastructural What?
Network issues. Is it possible to get the cost we incurred on networking alone? And possibly showing the overall cost of etax.
d Political How? e.g Delay of National ID project may result in multiple registration of same taxpayer