The URA 30% tax payment requirement has introduced a significant change for taxpayers involved in cases before the Tax Appeals Tribunal. This update, now accessible on the URA web portal, operationalizes Section 15(1) of the Tax Appeals Tribunal Act. It mandates taxpayers to pay 30% of the assessed tax or the undisputed portion, whichever is greater, before their case can proceed.

What Is Section 15(1) of the Tax Appeals Tribunal Act?

Section 15(1) requires taxpayers contesting URA tax assessments to make an upfront payment before their appeal is heard. This means that taxpayers must deposit either 30% of the assessed tax or the portion of the tax that is not disputed, whichever is higher, as a prerequisite for the Tax Appeals Tribunal to proceed with their case.

How Does the New URA 30% Tax Payment System Work?

With this new URA 30% tax payment initiative, taxpayers required to make the 30% tax payment will complete the process via the URA web portal. The payment process involves generating a Payment Registration Number (PRN) and selecting the “30% TAT payment” option under the “Basis of Payment” section on the Payment Registration page.

Key Features of the URA New 30% Tax Payment Process:

1. Payment Is Not Applied to Outstanding Tax Liabilities Immediately
   • Payments made under this system remain separate from other URA tax obligations.
   • The amount paid will only be applied after the Tax Appeals Tribunal delivers its ruling.
2. Options Available Post-Tribunal Ruling
   • Taxpayers have two choices after the Tribunal’s decision:
     • Apply for a refund of the URA’s new 30% tax payment, or
     • Offset the amount against other outstanding URA tax liabilities.
3. Handling Cases Where the Undisputed Tax Exceeds 30%
   • If the portion of URA tax not in dispute is greater than 30%, the taxpayer must select either the “Assessment” or “Audit” payment basis, depending on the nature of their case.

Why Is This Change Important?

The new URA’s 30% tax payment structure aims to streamline the tax appeals process, ensuring that:

• Taxpayers meet an upfront obligation before their case proceeds,
• The Tax Appeals Tribunal can efficiently handle disputes, and
• Taxpayers retain the flexibility to either reclaim the payment or apply it toward other URA tax obligations.

Conclusion

The URA’s 30% new tax payment system significantly improves how tax disputes are handled before the Tax Appeals Tribunal. With clear procedures for making payments and options for post-ruling adjustments, taxpayers can navigate the URA’s tax appeal process more efficiently.

Taxpayers involved in Tax Appeals Tribunal cases should familiarize themselves with these new URA 30% tax payment guidelines and ensure compliance to avoid delays.

By Nyakato Dorothy
Ronalds Uganda

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