As one of the measures to collect more taxes, the Uganda Revenue Authority (URA) has given tax payers with fake VAT invoices a grace period of 90 days to rectify their records and correct any other anomalies in VAT returns, failure to do that will lead to prosecution.
Patrick Mukiibi, the Commissioner Tax Investigations, said a cross section of VAT registered taxpayers obtain fake invoices, which they incorporate in their business purchases to reduce tax payments. “The forged invoices are generated to portray a business transaction which is not genuine. In reality, there is no supply or movement of goods and services,” he says.
Mukiibi says URA has launched an investigation into this kind fraud and urged taxpayers to pay monthly VAT payments to URA before 15th of every month.
URA is mandated to collect all taxes in Uganda and for the financial year 2017/18, the agency was tasked to collect just over Shs15 trillion, latest records show it has failed to achieve monthly targets.
