Tax health checks
Our tax experience has shown us that companies find it difficult to manage their tax function or lack adequate internal tax systems, resulting in the attendant tax risks. In general, clients' challenges will range from non-compliance e.g. failure to submit tax returns or pay tax when due, to challenges from the Uganda Revenue Authority (‘URA’), the National Social Security Fund (‘NSSF’) and local governments not being addressed to the satisfaction of those authorities. These result in strained relationships between the tax payer and the authorities.
Typical examples of tax exposures we find at tax health checks and investigations include.
- Incorrect treatment of VAT on membership subscriptions.
- Late payment of tax and or social security or local services tax together with the associated penalties and interest.
- Withholding tax incorrectly applied or not withheld, on imports or domestic transactions.
- Failure to correctly complete and lodge statutory returns.
- Employee status being incorrectly assessed. A typical difficulty is where taxpayers have ‘casual labourers' on their books.
- Employees’ tax incorrectly calculated.
- Related party transactions which are not supported by appropriate transfer pricing policies or a lack of transfer pricing documentation.
- In general omitting certain income or expenses in their income tax return due to inadequate tax reporting and compliance systems.
Our work and what we can deliver.
We are able to work with you to identify tax risk areas, to quantify them and to make recommendations in report formats and discussions so as to rectify material tax exposures. We are happy to work with you to implement appropriate controls and procedures to mitigate future tax risks. Our tax health check support service is intended to assist management with their comprehensive tax risk management policy so as to enhance their overall corporate governance responsibilities.