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A three-day onsite assessment by OECD experts to evaluate Uganda Revenue Authority’s readiness for receiving financial information from over 120 countries regarding Ugandan taxpayers with assets abroad.

A team of experts from the Organisation for Economic Co-operation and Development (OECD) has undertaken a comprehensive three-day onsite assessment of the Uganda Revenue Authority’s readiness pertaining to Information Security. This evaluation is in anticipation of the reception of financial data from over one hundred twenty (120) countries concerning Ugandan taxpayers with assets abroad.

The obligatory assessment scrutinizes Uganda’s capacity to securely manage taxpayer information, adhering to international standards by scrutinizing statutes, policies, systems, technology, processes, and protocols. Furthermore, it evaluates the organization’s ability to mitigate risks, handle incidents, and uphold the principles of data confidentiality.

This pre-exchange assessment for Uganda started in October 2023 and a report of Uganda’s standing will be prepared and circulated to all members before the end of the year. The next assessment will be a post-exchange assessment.

Denis K. Kateeba, the Commissioner of Tax Investigations, emphasized the significance of this peer review in the effective execution of the Automatic Exchange of Information (AEOI) as a component of the Domestic Revenue Mobilisation Strategy (DRMS), aimed at combating illicit financial flows (IFFs).

“The objective is to enhance revenue collection, aiming to elevate Uganda’s tax-to-GDP ratio to 18%, and subsequently to 20% within the next five years, aligning with the DRMS’s primary focus,” he articulated.

Through the AEOI initiative, URA stands to combat international tax evasion, identify IFFs, and tackle transfer pricing concerns by fostering collaboration with other tax jurisdictions.

Kateeba underscored that the implementation of the program will necessitate the expansion of information sources available to URA, encompassing conventional avenues such as banking institutions, along with non-traditional channels like e-commerce, thereby facilitating evasion detection and the identification of new taxpayers.

“AEOI marks a significant advancement by affording URA access to data held abroad by our resident taxpayers. URA is demonstrating robust information system management practices that align with internationally recognized security standards regarding the duty of confidentiality,” Kugonza appended.

In his remarks, Commissioner General John R. Musinguzi commended the review as timely, asserting that it equips the organization to effectively access, safeguard, store, and utilize data both internally and in collaboration with its partners.

He acknowledged the pivotal role of data in the swiftly evolving digital landscape, reshaping the manner in which businesses exchange and manage information.

“This endeavour is not merely about fulfilling the requisites of international mandates but also about upholding the foundational principles of trust, privacy, and security that underlie the organization’s digital operations. This is especially pertinent as the organization braces for its inaugural automatic exchange of information,” he concluded.