Uganda’s best music record label Swangz Avenue has been listed among the top tax defaulters by the Uganda Revenue Authority. The record label now has ten working days to resolve its tax situation or risk penalization and possible criminal investigations.
One of the biggest causes of low revenues in the Ugandan economy, according to the government, are tax defaulters. Tax has always been defaulted by various companies and individuals who usually take advantage of the lapse in the Uganda Revenue Authority’s weaknesses when collecting different tax.
URA published a notice indicating their first publication on beneficiaries of fictitious invoices and excludes 48 taxpayers who are already under investigations and 40 taxpayers that are in the process of addressing the raised queries to their tax offices. The list of 293 defaulters was put on URA’s website.
On this list, a few companies will shock you, some others – not much. To our surprise, Swangz Avenue, one of Uganda’s finest music record labels has been stated on the list with a purchase amount of UGX 112, 539, 339. Other companies on the list include 2K Restaurant (UGX 943 million), China Nanjing International Limited (UGX 490 million), among others.
According to URA Public Notice released, there are dedicated efforts meant to address the fraudulent use of fictitious invoices in VAT returns. All listed persons and businesses who declared purchases in their VAT returns for the period 2013 to 2017 from persons published in the Daily Monitor newspaper of 25th May, 2018 and the URA website have been advised to equally make effort as recommended by URA.
Swangz Avenue and other defaulters are expected to rectify their respective tax situations within ten working days from the date of publication of the notice.