URA Threatens Legal Action Against Clearing Agents Over Corruption

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URA Threatens Legal Action Against Clearing Agents Over Corruption
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This malpractice is reportedly hindering URA from achieving its revenue targets and eroding public trust in the system.

The Uganda Revenue Authority (URA) has warned corrupt licensed clearing agents of severe legal repercussions over unethical practices that force taxpayers to make double payments.

The authority has vowed to revoke licenses and pursue criminal charges against those found guilty.

Commissioner of Customs Asadu Kisitu has urged taxpayers to refrain from giving money directly to clearing agents, describing such actions as a major source of tax leakage.

This malpractice is reportedly hindering URA from achieving its revenue targets and eroding public trust in the system.

According to Kisitu, some licensed agents have been exploiting taxpayers by demanding extra payments under false pretenses, leading to overpayments and unnecessary financial burdens.

He emphasized the need to address these unethical behaviors to protect both taxpayers and the integrity of the tax collection process.

“We license and supervise those agencies. However, there are those who misrepresent us. Some cases are under investigation, and those found guilty will be fined, have their licenses revoked, and be brought to book,” Kisitu said.

The URA’s response comes after numerous complaints from taxpayers about the corrupt practices of certain agents.

Tax experts have criticized the tax authority for its limited regulation of clearing agents, which they argue has allowed such behaviors to persist.

The URA’s tough stance aims to boost transparency and efficiency in Uganda’s tax system.

By threatening legal action against unethical clearing agents and educating taxpayers on avoiding exploitation, the authority hopes to foster a more reliable and trustworthy revenue collection framework.

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