UK Experts Boost Uganda’s Cryptocurrency Tax Investigations
The Uganda Revenue Authority recently received training from the UK’s His Majesty Revenue and Customs on handling cryptocurrency for tax purposes. The training, aimed at enhancing URA’s capacity to manage and regulate crypto-related transactions, included insights from HMRC’s successful approach and strategies.
Recently, staff from the Uganda Revenue Authority (URA)’s Tax Investigations Department received training on leveraging the cryptocurrency sector for tax purposes. The week-long training was facilitated by experts from the United Kingdom’s His Majesty’s Revenue and Customs (HMRC).
The delegation also met with URA’s top management to share additional insights. Ibby Oke, who led the team, revealed that having a dedicated team focused on cryptocurrencies has significantly contributed to HMRC’s successes in this area.
She praised URA for adopting a similar approach, emphasising that it allows the team to gain a deeper understanding of potential threats and develop strategies and processes to handle and identify crypto-related cases.
Denis Kugonza, URA’s Commissioner of Tax Investigations, highlighted the importance of engaging with the cryptocurrency space, noting that many companies have begun using this form of payment. He revealed that URA has already handled two cases, resulting in the recovery of 1 billion shillings in revenue, demonstrating the sector’s significant potential.
Kugonza explained, “With the establishment of a new cyber intelligence unit and the necessary training, we are now equipped to track and recover funds.” He also pointed out that the lack of governing laws remains a major challenge, mentioning ongoing discussions with the government to enact appropriate regulations for taxing this growing sector.
Addressing the delegates, the Commissioner General, John Musinguzi, expressed optimism about the revenue potential of the cryptocurrency sector. He requested HMRC’s support in developing policy proposals to be submitted to the Ministry of Finance for consideration. Musinguzi also thanked HMRC for assisting URA in capacity building, noting that knowledge sharing adds value to the tax authority’s processes.
