Canons of taxation in uganda pdf

Taxation refers to compulsory or coercive money collection by a levying authority, usually a government. The canons of taxation were first developed by adam smith as a set of criteria by which to judge taxes. In the united states, the role of the government extends from providing for national defense to providing social security and medicare to the elderly. Intoduction to public finance and taxation theory public finance is the term, which has traditionally been used or applied to the packages of those policy problems, which involve the use of tax. They are still widely accepted as providing a good basis by which to judge taxes. The uganda revenue authority administers the tax laws acts on behalf of the ministry of finance, planning and economic development under the following legislation regulating taxes. Taxation is an ageold practice that is acceptable worldwide. Most governmental activities must be financed by taxation.

Introduction to taxation in uganda download ebook pdf. Demonstrate knowledge of the impact taxes on the business financial decision. A modern welfare state should incorporate all the canons of public expenditure. The state cannot raise sufficient revenue and, at the same time. Generally, government expenditure on public activities is much higher than the revenue collected through various sources. Taxation was introduced in east africa by the british colonial administrators through the system of compulsory public works such as road construction, building of administrative headquarters and schools, as well as forest clearance and other similar works. Taxpayers rights and obligations the web site cannot be found. Therefore, the uganda revenue authority act cap 196 was put in place to provide the administrative framework in which taxes under various acts are collected. Interestingly, they have done so with no economic penalty.

Uganda is a landlocked country located in east africa. The primary purpose of taxation is to raise revenue to meet huge public expenditure. Ugandas tax structure has been greatly improved in recent years, and it appears to mirror the tax system in other. The handbook clearly outlines the structure of ugandas tax system, the different taxes paid,the taxpayers obligations and the different ways in which the aggrieved taxpayers may seek redress. Analyse emerging issues in taxation of incomes in the eac and eu. Examine the evolution and rationale of income tax in uganda. Burden of proof collection and recovery of tax 103. As well as paying tax in uganda, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. General principles and recent trends congressional research service summary the exercise of the judicial power of the united states often requires that courts construe statutes.

Jan 01, 2001 this book offers a comprehensive and practical account of the legal and technical aspects of income tax in uganda. Some basic points about the taxes in uganda youtube. Canonsprinciples of taxation by adam smith some other. Principles of taxation are those formal guidelines which are widely accepted andor discussed and should be considered whenever specific laws are proposed, discussed and implemented. Changes in the schedule to the excise tariff act the excise tariff amendment bill 20 also proposes to raise excise duty on cigarettes, undenatured spirits and fuel. This requirement is presumably intended to override the regime for separate taxation of rental income that was expanded to cover all landlords resident and nonresident in 2014. To judge the merits of a tax system, it must be looked at as a whole. For, a tax system to be a good one just cannot have all good taxes but none bad at all. The most popular and commonly accepted principle of equity or justice in taxation is that citizens of a country should pay taxes to the government in accordance with their ability to pay.

The government should collect revenue from its citizens by levying direct and indirect taxes. Agreed fee not to be less than scale up to twenty thousand shillings. However the principle of maximum social advantage is the most fundamental canon of public expenditure. Tax watch aug 20 5 international call services which in turn will reduce on the pro. For example, the availability of redress mechanisms and the confidentiality of taxpayer information are both domestic and international issues. It appears very reasonable and just that taxes should be levied on the basis of the taxable capacity of an individual. By canons of taxation we simply mean the characteristics or qualities which a good tax system should possess. Issues covered are deductions allowed and not allowed, income tax returns, assessments and tax rates and appeals and objections against assessment. Canon of diversity says that the system of taxation should include a large number of taxes whish are economical. This site is like a library, use search box in the widget to get ebook that you want. The country is a republic, and achieved this status on october 9, 1962 when the country attained independence from british colonial rule. Matsiko godwin muhwezi at uganda christian university ucu.

Contents taxation public finance public revenue objectives of taxation classification of taxation canons of taxation individual income tax rates in india exemptions and deductions from tax conclusion references. Taxation handbook a guide totaxation in uganda a publication of uganda revenue authority fountain publishers kampala. We hope this handbook, helps you to further understand taxation in uganda. Since 1962, uganda has had 6 presidents and suffered political instability and. The first formal tax, the hut tax, was introduced in 1900. The economists have put forward many theories or principles of taxation at different times to guide the state as to how justice or equity in taxation can be achieved. When taxes are imposed, certain conditions must be fulfilled and these conditions are known as principlescanons, guidelines of taxation. The following is a brief explanation of the nine main canons of taxation. Public expenditure there are 5 canons of public expenditure which are presented for you one by one. In 1952, the ordinances were replaced by the east african income tax management act, which laid down the basic legal provisions found in the current income tax law.

Stephen harper made this remark during the federal election last year in announcing he would reduce the goods and services tax from 7% to 5% if elected prime minister. Adam smith originally presented only 4 canons of taxation, which are also commonly referred to as the main canons of taxation or adam smith s canons of taxation. Modern economists have added more in the list of canons of taxation. In their dealings with other countries, good revenue authorities cooperate in a spirit of trust and ensure that nontax. The balance is taxed at 10%, 20% or 30% depending on the income bracket. People should pay taxes according to their ability to pay them. Mar 01, 2017 which are the canons of taxation today. Uganda had been a protectorate of the united kingdom from 1894 to 1962. Developed countries have had commendable success in improving their taxation policy systems over the years. Explain the principles canons of taxation elements of taxation.

Robert asaph sempagalampagi isbn 9789970029778 cataloguinginpublication data taxation handbook. A tax is effective when the collection and compliance cost are low. Pdf do presumptive and rental taxes conform to the canons of. Tables, charts, practical examples and question and answer sections are included. The 18thcentury economist and philosopher adam smith attempted to systematize the rules that should govern a rational system of taxation. It implies that tax should be levied on citizens on the basis of equality. In complying with the canons of taxation, taxes may be characterised as proportional, progressive or regressive. In order to provide for these program and services, the government needs revenues.

Introduction to taxation government plays an important role in most modern economies. Along with the passage of time, more canons were developed to better suit the modern economies. This canon of equity suggests that application of taxes should be equitable. Among 9 canons of taxation discussed, adam smith propounded the following first four canons of taxation. I am glad to introduce to you the second edition of the taxation handbook, a guide to taxation in uganda. However, there are other canons though not of lesser importance. Truly speaking, in the modern world, taxation is used as an instrument of. The companies are experts in uganda taxation, and theyll ensure that you keep the largest proportion of your earnings whilst complying with local laws. Canons of a good tax structure mitigate that the government demands tax in advance. The other canons or principles are simple administrative rules which should guide the authorities, in the way of spending public funds, entrusted to them. Adam smith, the father of modem political economy, has laid down four principles or cannons of taxation in his famous book wealth of nations.

Adam smith first devised the principles or canons of taxation in 1776. There are few branches of political economy more interesting in themselves, or of more importance at the present time, than the subject of taxation, and yet there is scarcely any on which greater errors are prevalent. The manager of public and corporate affairs at ura, mr. Answer articles 152 i of the uganda constitution provides that no tax shall be imposed except under the authority of an act of parliament. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. Variety in taxation in desirable from the point of view of equity, yield and stability. Is ugandas tax system in line with the canon laws of taxation. Findings from this study show that hightax countries have been more successful in achieving their social objectives than lowtax countries. Ian muhimbise rumanyika talks about the basic key points of ugandas taxes. Although they need to be reinterpreted from time to time, these principles retain remarkable relevance.

Pdf do presumptive and rental taxes conform to the canons. Resident individuals enjoy a tax free annual income threshold of ugx. In addition to the printed version of the wwtg, individual country taxation guides are available in pdf format which can be downloaded from the pkf website at. Is uganda s tax system in line with the canon laws of taxation. When taxes are imposed, certain conditions must be fulfilled and these conditions are known as principles canons, guidelines of taxation. In the wealth of nations book v, chapter 2 he set down four general canons. Laws of uganda as enacted by parliament andor published by the uganda law reform commission. The term taxation applies to all types of involuntary levies, from income to capital. Oct 21, 20 the canons of taxation were first presented by adam smith in his famous book the wealth of nations. Income tax was introduced in uganda in 1940 by a protectorate ordinance. Although these canons of taxation were presented a very long time ago, they are still used as the foundation of discussion on. This book offers a comprehensive and practical account of the legal and technical aspects of income tax in uganda.

Double taxation treaties in uganda impact and policy implications 9 introduction uganda is a signatory to ten dtts, having entered into agreements with developing countries like zambia, transition countries like mauritius and india, and developed countries such as the netherlands and the united kingdom. Taxation the most important source of revenue of the government is taxes. Theories of taxation benefit theory cost of service. However, developing countries face numerous tax policy challenges when they attempt to establish efficient tax systems. It will depend on your nationality and the nature of. Pdf on feb 1, 2016, matsiko godwin muhwezi and others published do presumptive and rental taxes conform to the canons of taxation find, read.

Taxation of nonresidents providing shipping, air transport or telecommunications services in uganda. Domestic tax laws of uganda uganda revenue authority. Our team of experts are at hand to offer tax solutions for all business categories. A tax is a compulsory charge or fees imposed by government on individuals or corporations. The income tax rate for individuals depends on the income bracket in which the individual falls. Truly speaking, in the modern world, taxation is used as an instrument of economic policy. These principles are still considered to be the starting point of sound public finance.

Taxes are the price citizens of a country pay for the goods and services they collectively pro. A tax is said to be effective when it meets the objectives of the tax. The first edition was developed to guide our stakeholders in in complying with tax laws and procedures for central government taxes. In fact, canons of taxation are related to the administrative part of a tax. Pdf do presumptive and rental taxes conform to the.

Therefore principlescanons of taxation are signposts in the economy, which should guide the. It was mainly payable by the europeans and asians but was later on extended to africans. There are principles upon which taxation in any country must be enshrined to ensure that a fair and just taxation system is in place. Important characteristics of a good tax system taxation. Analyze taxable incomes prepare moderately difficult income tax returns. Taxation in uganda at grant thornton, we appreciate the unique nature of tax law and the fundamental principles that underlie its interpretation and application. The state cannot raise sufficient revenue and, at the same time, please the tax payers. Taxation, imposition of compulsory levies on individuals or entities by governments. Okuja an updated and tracked compendium containing a reproduction, with amendments, of the income tax act, the value added tax act, the excise duty act, the. These canons of taxation define numerous rules and principles upon which a good taxation system should be built.

Detailed description of corporate group taxation rules in uganda. For year of income 1951, had been allowed to deduct 18,526 as bad debts because it continued to receive income from uganda in 1951, received. They can deal with any issues with the ugandan tax office or tax department directly including processing your tax refund if you are eligible. The pkf worldwide tax guide 20 wwtg is an annual publication that provides an. Will a nonresident of uganda who, as part of their employment within a group company, is also appointed as a statutory director i.

It is a practice that is enshrined in ugandas constitution allowing therefore, the country to tax its citizens. Click download or read online button to get introduction to taxation in uganda book now. In other words, taxation policy has some nonrevenue objectives. Taxation in uganda taxation as understood today was introduced in east africa by the early british colonial administrators through the system of compulsory public works such as road construction, building of administrative headquarters and schools, as well as forest clearance and other similar works. The pkf worldwide tax guide 20 wwtg is an annual publication that provides an overview of the taxation and business regulation regimes of the worlds most significant trading countries. The persons who are taxed have to pay the taxes irrespective of any corresponding return from the goods or services by the government. The other way the taxpayers used to avoid taxation was to retain dividends until such a time when income of other shareholders was known and declared exempted. Principles of good tax administration practice note. There are no specific provisions in the law covering groups, so companies in a group do not get any special treatment for tax purposes in uganda.