The Tax Justice Alliance Network Uganda and Civil society organizations have asked the government to revoke all weak treaties, especially on those on withholding tax. This move is meant to keep multinational companies from shifting their profits to tax havens.
“We are concerned about the shocking scandals uncovered by the ‘Panama Papers’ leak, regarding multinationals’ corporate tax evasion and avoidance. In the case of Uganda, this denies Uganda the much-needed resources. The most risky treaties are those binding Uganda with countries such as Netherlands and Mauritius, and they should ,therefore, be revoked or renegotiated. Uganda needs resources to fund essential public services like healthcare, agriculture and education, as well as paying for public infrastructure needed to raise the living standards of Ugandans.”” said one Rama Omonya, Oxfam;s governance and accountability manager.
This call came after the expose by Panama papers revealed that Heritage Oil and Gas Ltd had attempted to avoid paying taxes to Uganda.
So, any multinational planning to set camp in Uganda better be ready to pay taxes!