Tax Dispute between NSSF, URA Deepens

Tax Dispute between NSSF, URA Deepens

The Shs84Billion dispute between NSSF and URA has taken a fresh twist after they involved the Auditor General James Muwanga.

Muwanga is asking the National Social Security Fund NSSF, to expedite the resolution of an impasse with the URA arising from a Shs84.4Billion tax arrears claim.

At the heart of the standoff is legal interpretation of the laws on both sides which has led to arbitration which has not yet bore fruit.

“The fund is challenging the basis on which the Uganda Revenue Authority disallowed certain expenses in calculating the company’s tax assessment for the year ended June 30, 2013,” explained Muwanga before adding; “The note also indicates that the directors have not recognized any provision of Shs84.4Billion to the Uganda Revenue Authority.”

NSSF management says the tax demand by URA is not necessary to be levied on members’ interests.

“What URA us claiming is that we should pay our members as distribution of dividends which would then mean it would attract a tax of withholding and that’s the difference in opinion,” explained NSSF Boss Richard Byarugaba.