CIAO DATE: 11/04

Taxpayer's Rights and Obligations: Analysis of Implementation and Enforcement Mechanisms in Uganda

Abstract

A tax is part of the price one pays for living in a modern society. People pay taxes because of the obligation to do so. Taxation refers to the method by which the sources of government revenue are collected and re-apportioned amongst those who benefit from its services. Conceptually, taxation includes all charges and burdens imposed by the taxing authority upon individual persons, corporate bodies, their property or property rights, the revenue from which can be utilized by that authority or its superior authority (such as the central government) to fulfill its obligations.

There are two main types of taxes: direct taxes and indirect taxes. Direct taxes are those taxes imposed upon the individual according to his/her ability to pay. Such taxes include Graduated Personal Tax (GPT) and Income Tax. Indirect taxes are those levied upon certain articles of consumption and include: customs and excise duties as well as property tax (rates) usually levied on buildings in urban centres.

A taxation system must be based on clear and solid legal foundations. It is, therefore, not appropriate for the tax authorities to require more taxes or to claim them earlier than prescribed by law or to enforce tax obligations using arbitrary means. In any taxation system, one of the greatest benefit for taxpayers is where the tax laws are binding to both taxpayers and taxing authorities. Thus effective enforcement of taxpayer’s rights and obligations depends upon a well-established tax legal regime.

Full Text (PDF, 80 pages, 387.2 Kb)