The Uganda Income Tax Act 1997; A Primer on Concepts and Structure

Introduction This book is the result of a technical assistance programme carried out in 2005 by IBFD to assist the Tax Policy Department of the Uganda Ministry of Finance, Planning and Economic Development to enhance its technical capacity in inter alia income tax, value added tax, and customs and excise policy. The project was funded by the European Union. The book is aimed principally at tax practitioners, policymakers and operational administrators in Uganda, but will be useful to those in other countries with similar tax legislation. In addition the book provides a useful insight to legal, accounting and business students of income taxation and to their academic mentors. Summary of Contents Income tax law generally is fraught with interpretation difficulties and contradictions which make its consistent application difficult. In this respect, the Uganda Income Tax Act is no different from the income tax laws of other countries. In attempting to address this problem, this primer focuses on the structure and conceptual basis of the Income Tax Act 1997. It explains the place of the tax law within Uganda's institutional legal framework and the principles by which the Income Tax Act should be interpreted. This book contains a rigorous examination of the structural composition of the Act and the essential general provisions which underpin its rationality. The main topics covered are: - Ugandan tax residence and the territorial scope of the income tax, - the notions of chargeable income, - gross income, - allowable deductions, - annual tax liability, - tax credits and separately assessed schedular income, and how they relate to each other; and - anti-avoidance provisions. The book highlights significant interpretation issues and offers a sprinkling of case studies to encourage the reader to think about the material discussed and to draw his or her conclusions. The issues arise out of the legislation itself and the case studies are based on real cases drawn primarily from African jurisdictions.