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Breaking News: Uganda Suffers Nationwide Power Blackout, UMEME Confirms

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If your in Uganda and connected to the national grid, you must have experienced some power black out for the last 40 minutes.

Now according to the UMEME, an agency mandated with the distribution and management of electricity in Uganda, the Uganda Electricity Transmission Company Limited UETCL has confirmed that the problem is country wide but their engineers are doing their best restore power and ascertain the cause of the issue.

Uganda boosts of over several hydro power electric dams which include Bujagali, Kiira, Isimba, Nalubaale, Karuma (all located along the river Nile) and Achwa. But Karuma which will generate 600 Mega Watts is set to be launched later this year.

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With these huge investments in hydro power dams mostly with Chinese loans, Uganda exports electricity to Kenya, Rwanda, DRC and is also set to export power to South Sudan.

This is a developing story…..

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Angola Border Market Located In No Man’s Land Feeds Paidha Population

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By Hillary Alithum

Angola market that is located in “No man’s land “political border between Uganda -Alisi and DRCongo -Ambere borders is a centre of affinity to over 400 hundred farmers , vendors and community members because of the best ever wheeling and dealing accorded during sales of commodities .

This market that sites on about one acre of land , culturally owned by the people of Parombo Clan gained business momentum during the complete Lockdown of Uganda’s economy in 2020 as a mitigative measure to the surge of COVID 19 infections by restricting congregation in public places like markets, churches ,schools among others reciprocating into closure of business spaces within the urban and rural settings, the tough enforcement of Standard Operations Procedures and the consistency of unfashionable human demands of basic needs especially food items masterminded the existence of the present day Angola market with meritorious location where laws of the two countries bearly litigates on breach of standard operation procedures.

The market majorly handles agro produce such as fish , Cassava flour , tomatoes, cabbages ,onions ,palm oil among many other items . According to the narrative of a local leader from Warr – Palara – Azalama ,Mr.Orwinya Fastino said the market is under the management of their local chief of Warr who allowed his subjects to erect market stalls in the land to enhance revenue generation of the chiefdom through payment of market dues “this market helped us during the lockdown when Paidha main market was closed because of COVID 19 pandemic ,many of our people were buying food items from this market “.said Fastino .

This market now acts as a buffer to Paidha main market that hosts a population projection (by 2020 ) of over 37,500 people, availing the much needed commodities at cheaper prices from farmers who Trek from Democratic Republic of Congo to Angola market, forfeiting Paidha main market and dwindling local revenue generation for Paidha town council.
Mr.Masendi David, resident of Jupanyondo west village reiterated the benefits accrued from the market,”it has helped us to easily access foodstuffs because we buy directly from the farmers at cheaper prices compared to expensive retail vendors in Paidha main market”.

Most of the farmers from DR Congo who sell at Angola market argue that it’s nearer to them compared to Paidha main market ,where occasionally they are harassed by border security personnels and above all pay exorbitant market dues.

Ms.Ayiorwoth Esperance ,a farmer from Guna (DRC ) justified her preference to sell in the border market,

“I prefer selling in Angola market because my customers come to look for me here ,so I find no need of going to Paidha main market where market due collectors ,border security officers harass me and transportation costs are also high “.

Mr. Akenda Benson Ulama , Civics advocate alluded to inflated market dues levied on common peasant farmers by purported market Tenderers who lumpsumly exaggerate dues to exploit the ignorance of farmers ,”they demand new payments on remnants of goods that were previously paid so long as the farmer has come to the market hence fetching all the profits farmers are to get from their produce” Ulama said .

The mushrooming border and night markets along border points within Zombo and Nebbi districts are major sources of revenue for most local government administrative units, subsidizing the central government transfers to effect service delivery above all the insecurity threats along the porous borders endangers the economic viability of the border markets as many investors are always skeptical about available business ventures.

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JUST IN: Police Shoots Down Woman In Garden

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The Late Namuwanga Jackline shot dead by police

WAKISO: In another disturbing incident today, media reports that police men in plain clothed attires shot a woman in her garden today morning over yet to be known reasons as she was digging.

It’s said this woman who has been identified as Jackline Namuwanga, 34 years a resident of Nakabugo in Wakiso district met her death when she saw police men in plain clothes armed with guns who were in an operation to arrest her neighbor identified as Kiboneka Joseph.

Upon seeing the armed men, she started making alarms which she didn’t know  would call for a bullet that will end her life.

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According to her husband only identified as Wasswa says that when these men shot his wife, they picked up her body and disappeared with it and not yet aware of it’s whereabouts.

Police is yet to open up about this issue.

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Zombo Leaders Await Kyambogo University Senate Pronouncement On a Study Centre At Former Paidha PTC

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By Hillary Alithum
ZOMBO: Paidha primary teachers college that was established in 1982 as a government founded college in the THEN Paidha Demonstration primary school now Mvugu upper primary school ,(church of Uganda founded primary school) was in 1989 transferred on 80.9 hectares of land in Dwonga ward ,Paidha town council (current location) has
outlived it’s significance ,as government takes a drastic move to allow the National Teachers policy 2019 to came in to play by phasing out the 23 non Core primary teachers training colleges across the country in a bid to set standards and check on quality in the education sector.
To this effect political, religious, cultural and other education sector stakeholders in Greater Nebbi districts congregated in several meetings to devise alternative productive use of the facilities, assets and liabilities of Paidha primary teachers college, two factions arose from the meetings demanding for A Core PTC and Kyambogo university Study center respectively with arguments on impacts that will be created .
On the 31st of May ,2023 Zombo district local government under the stewardship of Oyullu James Oruna the LC5 chairperson passed a resolution to allow Kyambogo university to establish a study centre at the former Paidha primary teachers college, it’s upon this rich pronouncement that Kyambogo university,on the 19/07/2023, arranged a consultative meeting with leaders and education sector stakeholders of the district so that findings and recommendations of the consultation is submitted to the house of senate of the university for possible actions .
Dr.Stephen Kasumba ,who is the Dean of Distance Education , E-learning and learning centres at Kyambogo university told the leaders ,how his mixed views and perceptions about Zombo changed when he realized the leaders spoke one voice to request for establishment of the study center.
“if you don’t have education facilities within your location,it becomes expensive and unaffordable, Soroti university was established and the people have the same socio economic dynamics like Zombo ,money is scarce , people struggling to get students through O and A levels, when it comes to university traveling to Kampala has become very expensive and accommodation costly” Kasumba said .
The leaders are forecasting economic empowerment and development initiative s for the host communities in terms of business and job creation . Onencan Sadiki , District councilor representing Paidha town council said ,”Education standard is going to improve, job opportunities for the people , economically we shall empowered and our mothers will sell pan cakes to the students and houses shall be rented “.
The fractioned Stakeholders have thinly failed in discussions of autonomy in scenarios of an institution being government founded or funded . Wapokraw John Paskal , former LCV chairperson of Greater Nebbi district revealed how discussions on the autonomy of the institution fractioned the population ,” once you talk in favor of the university or Core PTC , you are labelled to be political or religious respectively ,there is nothing of that sort we are fighting for that place to become a university “.
The sentences in the Memorandum of Understanding between government and church in events of land ownership only connects the dots on grounds of appreciating coexistence , not on developments and purpose of facilities introduced on the land by government and it qualifies it to be a government founded entity .
Oyullu James ,LCV chairperson of Zombo district told the team of delegates from Kyambogo university the urgency with which they need Kyambogo university in the region of West Nile.”we can request government to give components of Core PTC within the university but my people are in need of the university tomorrow, because they will benefit from cheap accommodation, feeding and it will be payment of tuition only “.
 The district leaders now await pronouncement of the house of senate of Kyambogo university on the findings and recommendations to establish a university study centre at the former Paidha primary teachers college .

Silencing Use Of Guns In Karamoja Can Be Done Soldiers But Removing The Guns Needs Museveni Himself

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Armed Karimojong Pastoralist Grazing His animals along Karamoja, Turkana Border In Moroto District- Photo By Steven Ariong)

KARAMOJA: Government has deployed thousands of soldiers and it’s still deploying more in the volatile Karamoja region, well these security personnels are trying their best to stop the violence in the region.

Since July 17th 2021, when the joint security forces launched the 3rd phase of disarmament in Karamoja, they have managed to recover over 1,000 guns which is more higher than the number which president Museveni used to launch his gorilla war which later brought him into power.

Despite the recovery of these guns, the region still has a high number of illegal guns which is giving security serious headache to recover. This website interacted with some of the reformed cattle  rustlers who revealed that they can only listen to president Museveni when he comes to Karamoja and announce to invite all the armed rustlers to take guns to him.

“Should the president now come to Karamoja himself and put a meeting in an open ground and call all those who still have guns to take to him, you will see the overwhelming number of guns that president Museveni will receive within shortest time”-said Icumar Apalokol.

Apalokol said the challenge  most people have declined to hand over their guns to the forces is due to lack of trust between rustlers and soldiers.

“You hand over a gun right now tomorrow morning, the same security comes and arrest you demanding  you to reveal more others who have guns which is not right and that’s the reason why many rustlers still refusing to hand over their guns”- Apalokol said

Mark Lopusnyang another elder explained that in the first disarmament which president Museveni himself launched in 2003 in Kangole Chin in Napak district, people handed over thousands of guns without any resistance unlike  now where there is a lot of resistance due to unfriendly approach used by the previous commanders.

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“We are yet to see and judge the approach that the  newly deployed 3rd division commander Maj Gen Don William Nabasa will use otherwise the approaches by the previous leaders seem to have been unfriendly to the rustlers.,”-he said.

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Amudat, a Fertile District Where People Eat Gov’t Money And Walk Away Untouched.

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Rtd Maj Betty Akello The RDC Amudat District Inspecting a Section Of The Road Under Works By Cubroot Construction In Loro Sub-County Amudat District-PHOTO BY STEVEN ARIONG

By Joseph Ayolo

AMUDAT: Although president Museveni talks about fighting corruption in the government institutions, yes that could have been possible but because it has become a gospel song that only enters into Christian’s who keep on singing it without any impact in their faith, that’s how corruption is being perceived in Amudat district.

Amudat district in the north eastern Uganda is one of the 3rd born district of Karamoja followed by Napak, and Karenga district. What’s happening in this Amudat district can shock everyone if you go deeper.

This website brings you some of the corruption scandals where money has been swindled but no official has ever been arrested. The first it’s about the Shs40million which the district officials embezzled using journalists ghost SACCO how this case died no one knows.

The 3rd corruption scandal is where the district health team used primary teachers accounts to swindle money meant for  paying village health teams in the district. Although everyone knows that its fraud to channel money meant for an activity to private bank accounts but this was a case with Amudat district. The officials who did this apologized before the security committee but no arrest has been made so far.

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Many other cases in the district have died a natural death something that has angered a section of the public in Amudat district. One of the officials who spoke to this website on condition of anonymity said several times the  Anticorruption team has ever reached to Amudat but they don’t do any arrest.

“These people are even able to pay off the Anti-corruption official’s  and they walk free-“he said

John Ruto from Acoricor in Amudat district says every project in Amudat are done in a poor and shoddy way but no one is questioned before he called upon government to carry out forensic audit of all the government programs in Amudat district to save the community.

“Look at the roads fully funded by government they are still untouched and money is already eaten”-he revealed.

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JOSHUA KATO: Building a Positive Relationship With The Uganda Revenue Authority

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JOSHUA KATO

By Joshua Kato

Tax laws in Uganda are formulated by the government through the Ministry of Finance, Planning, and Economic Development. The ministry is responsible for developing and proposing tax policies and legislation to Parliament. These laws undergo a process of review, debate, and approval by the Parliament before they are enacted.

URA therefore is responsible for administering and enforcing tax laws in Uganda. It’s simply a semi-autonomous government agency under the Ministry of Finance with a mandate to assess, collect, and account for tax revenues in accordance with the tax laws of Uganda.

The URA is entrusted with various tax-related functions, including tax registration, tax assessments, collection of taxes, audit and investigations, dispute resolution, and taxpayer education. It has the authority to issue tax assessments, conduct audits, and enforce tax compliance through penalties and legal actions when necessary.

It’s imperative to note that tax laws and regulations in Uganda are subject to periodic updates and amendments. These changes are primarily driven by the government’s fiscal policy objectives, economic conditions, and the need to align with international tax standards.

The URA plays a crucial role in ensuring compliance with tax laws and facilitating revenue generation for the government. It is also responsible for providing guidance and support to taxpayers, assisting them in understanding their tax obligations and facilitating smooth tax administration processes.

As a business owner, you must stay updated about the changes in tax laws, guidelines, and administrative practices issued by the URA to ensure compliance and maintain a good relationship with the tax authority.

In this article, we will explore the effects of taxes on businesses and provide valuable tips on how to maintain a positive relationship with the URA.

The Effect of taxes on your business

  1. Financial Implications. Taxes directly impact your business’s profitability, cash flow, and overall financial health. The amount of taxes owed is typically based on the business’s taxable income, which is determined after deducting allowable expenses from total revenue. Understanding different tax obligations, such as income tax, value-added tax (VAT), and payroll taxes, is crucial for budgeting and forecasting.
  2. Compliance Burden. This refers to the administrative, financial, and time-related obligations that businesses face in order to comply with tax laws and regulations. Businesses must register with the tax authority, such as the Uganda Revenue Authority (URA), and obtain a Tax Identification Number (TIN) before conducting any taxable activities. You have a duty to maintain proper recordkeeping, a duty to file various tax returns and declarations within specified timeframes, a duty to make timely payment of taxes owed based on the applicable tax rates and regulations. Non-compliance can lead to penalties, fines, and potential legal consequences.
  3. Competitive Disadvantage. Tax rates and structures can impact the competitiveness of your business, especially when operating in a global market. Higher tax rates and an unfavorable tax structure can increase the overall cost of doing business. When businesses face higher tax burdens, it reduces their profitability and financial resources available for investment, innovation, and growth. Taxes can also impact a business’s pricing strategy and competitiveness in the market. Taxes too affect the global market competition whereby in today’s globalized economy, businesses often compete on an international scale. Differing tax rates, incentives, and structures across countries can create disparities in the competitive landscape. Businesses operating in jurisdictions with higher tax burdens may face challenges in competing with businesses from low-tax jurisdictions.

How do you foster a positive relationship with the URA?

  1. Maintain Accurate Records: Implement good accounting practices to maintain accurate financial records. Keep track of all business transactions, expenses, and income, ensuring transparency and facilitating easy tax filings.
  2. Timely Tax Filings and Payments. Adhere to all tax deadlines and submit required filings promptly. Timely tax payments demonstrate your commitment to compliance and help avoid penalties or interest charges.
  3. Stay informed about tax regulations, changes, and deadlines. Regularly review the URA’s portal, newsletters, guidelines, attend workshops or seminars, and consult with tax professionals to ensure compliance and maximize available deductions or exemptions.
  4. Foster open lines of communication with the URA. Promptly respond to any requests for information or audits, and maintain transparency in your dealings. Seek clarification from the URA when needed and address any concerns proactively.
  5. Actively pursue a culture of voluntary compliance by adhering to tax obligations even when not directly monitored. Build trust with the URA and establish a reputation for being a responsible taxpayer.
  6. Take advantage of resources provided by the URA, such as online portals, guides, or helplines (Tollfree lines), to clarify doubts and seek guidance on tax-related matters. The URA has oftenly assisted businesses that demonstrate a genuine commitment to compliance.
  7. Engage a qualified tax professional or accountant who can assist you in understanding complex tax matters, optimizing your tax position, and handling any issues that may arise with the URA.

Adopting proactive measures in tax business management will help you work well in your business while building a positive relationship with the tax authority. This will help in ensuring compliance as well as contributing to the development of a fair and transparent business environment.

A strong partnership with the URA is mutually beneficial and paves the way for a thriving business in Uganda.

The writer is a Chartered Tax Accountant with Uganda Baati Limited

DISCLAIMER: The views expressed in this article are solely for and belong to the author/ writer. They don’t reflect, portray or represent Accord Communications Ltd, it’s affiliates, owners or employees. If you have a story in your community or an opinion article. let’s publish it. Send us an email via ultimatenews19@gmail.com or WhatsApp +255769138299

FULGENCE SSENDAGALA KAJUBI: Potential Triggers for a TP Audit 8

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Fulgence Kajubi Ssendagala

Transfer Pricing and Mystical

By CPA Fulgence Ssendagala Kajubi

Transfer pricing to the pricing of transactions between related entities for goods, services, intangible property, transfers rents and loans. The transfer prices determines the divisions of profits between related entities. It also refers to the practice of pricing transactions between and within enterprises under common ownership and control for example business conglomerates and multinational enterprises

Why transfer pricing is important?

  • Transfer pricing rules help to control the shifting of profits from one tax jurisdiction to another
  • Transfer pricing rules are designed to ensure that appropriate amount of income is subject to tax in each jurisdiction
  • If payments are too high in one-country, profits are shifted from that country to another.
  • If profits are too low, profits are shifted from another country.
  • Where there is absence of transfer pricing rules Multinational Enterprises (MNES) would either intentionally or unintentionally would use transfer pricing to shift large amounts from one country to anther

Impact of Transfer Pricing on the Financial Statements of an MNES

Transfer pricing affects different areas of an MNES financial statements. The below areas show how the intercompany transactions affect each financial statement.

  • Income statements
  • Sale of intangible property, any raw materials, Finished and traded goods
  • Services fees in terms of payroll, legal technical and advisory, tax, insurance, training, marketing, and sales, Research and Development, management services, creativity and innovation, strategic intent and direction among others.
  • Rents, lease of intangible and real property
  • Royalties for the intangible, license of patents, trademarks, and technical know how
  • Dividends and loans
  • Cost of sales
  • Purchases of tangible property, raw materials, work in progress, finished goods
  • Service fees: payments of assembly or manufacturing services
  • Production and machinery installation services
  • Quality control and assurance services
  • Maintenance and repair costs
  • sales, general & Administrative expenses
  • HR, marketing & Sales R&D
  • Rental payments and real property
  • Royalties for intangible property, trade mark
  • Service fee: HQ allocations for example management, accounting, legal, tax insurance etc
  • Interest income and expense on intercompany loans and lending
  • Balance sheet- Current assets & liabilities
    • Intercompany accounts payables & receivables
    • Short term and long terms borrowings and loans or lending
  • Intangible assets
  • Use of brands
  • Patents,
  • trademarks
  • And good will

(f)   Long term borrowing

  • Intercompany borrowings
  • External borrowing using parent company as guarantors

Laws governing Transfer pricing in Uganda. (The Legal framework).

Section 90 of the income tax act and the arms lengths principle.

This section was enacted to ensure that any transaction between related party if done on an arm’s length basis. The same section empowers the commissioner to distribute, apportion, or allocate income, deduction or credits between or among related taxpayers to clearly reflect that very income. The commissioner may adjust the income arising in respect of any transfer or licensee of intangible property between associates so that it is commensurate with the incomes attribute to that property,

Article 9 of the OECD /UN model convention.

The arm’s length as a principle basis of the transfer pricing is found in paragraph 1 of Article 9 of the OECD /UN model convention, which form the basis of the bilateral tax treaties

These rules are intended to make sure that if a taxpayer receives a transfer pricing adjustment in one country and does not obtain a correlative relief in the other country; such taxpayers will suffer a double taxation on the amount of the adjustment.

Uganda has nine tax treaties, which include Denmark, India, Italy, Mauritius, Netherlands, Norway, South Africa, United Kingdom and Zambia. Uganda also negotiated two tax treaties between Belgium and tripartite tax treaty between Kenya and Tanzania

Critical Role of Advance Pricing Arrangement in (APAs) resolving Transfer Pricing Controversy

  • Advance Pricing Arrangement (APAS) is a formal arrangement on transfer prices made between a taxpayer and a tax authority.
  • Helps to resolve Transfer Pricing (TP) disputes by allowing the taxpayer to negotiate with tax authorities
  • Advance Pricing Arrangement (APAs) used to avoid Transfer Pricing (TP) disputes for some of the most complex issues (such as HTVI)
  • Provides certainty for a fixed period
  • Avoid Double Taxation Risk in Future
  • Costs involved and time value of money

Potential Triggers for a Transfer Pricing Audit

  • Consistently loss making or low profit entities
  • Significant advertising and marketing spending by manufacturing / distribution companies
  • Non-maintenance of Transfer Pricing documentation / price setting mechanism not documented
  • Business restructuring
  • Transactions with related parties in low tax jurisdictions
  • Not following the Global Transfer Pricing Policy
  • Having various Specific transactions like Management fees, financial transactions, Royalty payments, Cost sharing agreements among others.

Conclusion

Transfer pricing is only tamed through the Arm’s length Principles. Companies should be aware that the above factors in addition to High interest rates, levels of related party transactions, huge levels of related-party debt,  Insufficient and no appropriate attribution of profit to permanent establishments  and where  most of the Financials of legal entities not aligning with transfer pricing policies will always open transfer-pricing disputes with tax authorities and thus lead to transfer pricing audits  in our organizations and or material transfer pricing provisions.

The Writer Is a Tax Consultant

DISCLAIMER: All the views expressed in this article are solely for solely and belong to the author/ writer. They don’t reflect, portray or represent Accord Communications Ltd, it’s affiliates, owners or employees. If you have a story in your community or an opinion article, let’s publish it. Send us an email via ultimatenews19@gmail.com or WhatsApp +255769138299

Hunger Drives Karimojong Farmers To Sell Off Farm Tools As Scraps

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Karimojong Elders Weighing Some Of The Farm Tools He Recieved From Government As Scraps In Moroto Town-Photo by Steven Ariong

MOROTO: The current  hunger situation in Karamoja region has reached to the worst situation now forcing farmers to sell off the  oxen ploughs, panga, rakes and hand hoes which were recently distributed to them by government.

Last year, the office of the prime minister distributed hand hoes and oxen ploughs, rakes, pangas and many other farm tools to families in the region to boost agriculture, however many farmers are selling off the inputs as scraps as to raise money for buying food.

Over the weekend, this website  come across some farmers in Moroto district selling off oxen ploughs, wheelbarrows, spades and racks as scraps at Shs15,000 for oxen plough depending on its weight yet at the market these oxen ploughs  are sold at Shs170,000 to 200,000.

Kelementina Nangiro one of the farmers who was selling his in Moroto municipality says  that it was useless for her to keep the farm tools at her home when there’s no rain and her kids are sleeping hungry.

“I was given these tools  but I don’t have bulls for ploughing all the animals I had have been raided so how can I keep the hoes in my house when am hungry”-says Kelementina

Marry Ilukol  another farmer in Rupa sub county in Moroto district  says she also sold three hand hoes given to her three month ago by operation wealth creation.

“With this insecurity and sunshine which wealth can we create to be honest, people are not able to go to their gardens because of insecurity”-she told us.

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This situation is happening in the whole region where farmers are selling off farm tools to buy food.

Paul Lokol Meri the district chairperson Nabilatuk district says the situation is worse and appealed government to rescue the region with relief food distribution.

Lokol said  many families now hardly afford  a meal.

“Our offices are always full of people coming crying for hunger yet we can’t do much to support them”-he told this website.

This not the first time hunger is hitting Karamoja region, every year the region always faces hunger due to erratic  rain fall.

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Amudat Locals Cracked Police Station Built At Shs700 Million

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Hon Betty Chelain Louke The Amudat Women MP- PHOTO BY STEVEN ARIONG

By Joseph Ayolo

AMUDAT: The newly constructed police station at Alakas border post in Amudat district has remained idle without the contractor handing it over to the police.

The development was after the concerned residents of the area who are supposed to be the beneficiaries of the station rejected the facility due to over widening cracks around  the building wall and the verandah.

Now the locals are calling for thorough investigations into the workmanship of facilities which was funded under Development Initiative for Northern Uganda (DINU) with the findings from European Union.

The facilities were constructed by Santur business link limited based in Amudat district.

A visit by this website at the police station also noted unbelievable cracks from the building which include five unit for the officers houses and police station which is at the cost of Shs700m. This website noted that the doors at the toilets are no longer closing and some doors from the police quarters are also failing to be closed.

William Chepar one of the concerned residents in the area says they will not be part of the community witnessing the hand over of the police station with such cracks in place.

“I know we are not educated but our houses that we build out of mad are better than this constructed scientifically,”he said.

According to Mr. Chepar, if police goes a head and receive such cracked buildings, then they will not be part of patriotism. Marry Cheruto another concerned resident says the cracks alone have widened especially inside the police counter, staff verandah and the latrines.

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This web site has learnt that the resident district commissioner Amudat Rtd Major Betty Akello  who was supposed to receive the buildings  has since jumped off dodging to answer questions as to why she didn’t decline to receive such a building.

Aruna Santur the contractor however blamed the cracks on the scorching sunshine.

” This soil has a problem in fact we did a lot of curing of those building but the sunshine is very hot,”he said.

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