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Thursday, July 20, 2017

#Uganda police chief, finance permanent secretary on hook for tax evasion

The inspector general of police, Kale Kayihura and the finance ministry permanent secretary, Keith Muhakanizi, are on the spot for evading payment of income and local service taxes for their ranches in Lyantonde district.
The issue came to light this morning during an interface between the parliamentary Local Governments Accounts Committee chaired by Reagan Okumu, the Aswa county MP and Lyantonde district officials.

During the meeting, it was noted that although Lyantonde district projected to collect Shs 105.7 million in local revenue in the 2015/2016 financial year, only Shs 80 million was collected.
In the 2014/2015 financial year, Lyantonde expected to collect Shs 115.6 million but only realised Shs 90 million. The officials noted that the failure to generate the projected local revenue hampers service delivery to residents.

Okumu tasked Alice Asiimwe, the Lyantonde chief administrative officer and the chief finance officer Moses Mugabi Ndawula to explain why their local revenue, a key sources of funding for local governments continues dwindling each financial year. 
He also asked the officials to explain how far they have gone with collecting local service tax and income tax from powerful politicians who own ranches and big farms in the district.


IGP Kale Kayihura

The MPs noted that they recommended last year that people with big ranches in the district such as Kale Kayihura, Keith Muhakanizi and Kabula County MP, James Kakooza should pay the district local service and income taxes.
In his response, Mugabi said they have not collected taxes from the said officials since they had denied access to the ranches.

Mugabi also noted that some of the powerful individuals in government he didn't disclose also threatened him when he brought up the matter before the committee last year. He however, noted that some cattle owners paid Shs 7 million in the last financial year.
On average each cattle ranch in the district can contribute Shs 300,000 each financial year. Okumu promised to summon and embarrass Kayihura, Muhakanizi and Kakooza should they continue evading the payment of local service and income taxes.

"They should be able to pay those districts that source of that local revenue. But on top of that , apart from the local service tax, they sell their animals and districts benefit. Now what we have found out, is that these people sell their animals from within their farms.
Now what we are going to push strongly, is that the district, should have access to these farms during times of sales so that they can reap something for the district based on the market value. At the moment by the way they are always threatened whenever you try to enter somebody’s land, farm", Okumu said.

Kayihura and Muhakanizi have not yet commented as they could neither pick nor return our calls. Kakooza declined to comment on the matter, saying he was locked up in a meeting.
THE OBSERVER, URN

Kayihura, Muhakanizi on the spot over local tax evasion

The inspector general of police, Kale Kayihura and the finance ministry permanent secretary, Keith Muhakanizi, are on the spot for evading payment of income and local service taxes for their ranches in Lyantonde district. The issue came to light this morning during an interface between the parliamentary Local Governments Accounts Committee chaired by Reagan Okumu, the Aswa county MP and Lyantonde district officials.

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