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IS THERE A DUTY TO PAY TAXES AND WHAT IS THE PUNISHMENT IF YOU DO NOT?.



📸: Unsplash.

Mr Mukisa is the CEO of LLL company. He has over 30 employees and property which he rents out. Mr Mukisa through his company decided that they would not be paying any taxes. The employees do not pay Pay as You Earn (P.A.Y.E), Value Added Tax for the products that they produce or property tax for any of the properties that they rent out.
Is Mukisa breaking the law?
 
WHAT DOES THE LAW SAY?.

In Uganda, there is a legal duty for individuals and entities to pay taxes. This is because taxes are the primary source of government revenue and citizens and businesses are required to fulfil their tax obligations as stipulated by the Ugandan tax laws and regulations. Failure to pay taxes can result in various penalties and consequences, including;

 1. Penalties and Interest: Taxpayers who fail to pay their taxes on time may be subject to penalties and interest charges.

 2. Legal Action: The Uganda Revenue Authority (URA)which is the body responsible for the collection of taxes in Uganda, may take legal action (sue) a person or business that does not comply with its tax obligations.

 3. Fines and Imprisonment: In extreme cases of tax evasion or fraud, individuals may face fines or even imprisonment if found guilty in court of not paying their taxes. 
 
Source: BarefootLawyers.

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