What Can We Learn From the Uganda Revenue Authority’s Approach to Taxing High Net Worth Individuals?

ICTD Working Paper 72

27 Pages Posted: 23 Feb 2018

See all articles by Jalia Kangave

Jalia Kangave

Independent

Suzan Nakato

Government of Uganda - Uganda Revenue Authority

Ronald Waiswa

Lone international Development Agency (LiDA)

Milly Nalukwago

Government of Uganda - Uganda Revenue Authority

Patrick Zzimbe

Government of Uganda - Uganda Revenue Authority

Date Written: January 2018

Abstract

Wealthy people contribute a significant share of the total revenue collected through personal income tax (PIT) in high-income countries. This is not the case in most low-income countries, where the bulk of revenue from PIT is collected from people who are in formal employment, especially in the public sector. In most cases, PIT is collected by employers and remitted to the tax authority. The problem is not an absence of laws providing for the taxation of wealthy individuals (commonly referred to as High Net Worth Individuals (HNWIs)). Rather, these laws are rarely implemented. On the one hand, this results in losses of income tax revenue, and, on the other, in severe inequity in the distribution of the tax burden. Successfully levying PIT on HNWIs requires a special organisational effort on the part of the tax authority.

Keywords: Personal Income Tax; High Net Worth Individuals; Wealthy Individuals; Very Important Persons; Politicians; Public Sector Office; Uganda; Criteria; Uganda Revenue Authority

Suggested Citation

Kangave, Jalia and Nakato, Suzan and Waiswa, Ronald and Nalukwago, Milly and Zzimbe, Patrick, What Can We Learn From the Uganda Revenue Authority’s Approach to Taxing High Net Worth Individuals? (January 2018). ICTD Working Paper 72, Available at SSRN: https://ssrn.com/abstract=3120579 or http://dx.doi.org/10.2139/ssrn.3120579

Suzan Nakato

Government of Uganda - Uganda Revenue Authority ( email )

Plot M193/M194- Nakawa Industrial Area
P.O.Box 7279
Kampala
Uganda

Ronald Waiswa

Lone international Development Agency (LiDA) ( email )

Uganda

Milly Nalukwago

Government of Uganda - Uganda Revenue Authority ( email )

Plot M193/M194- Nakawa Industrial Area
P.O.Box 7279
Kampala
Uganda

Patrick Zzimbe

Government of Uganda - Uganda Revenue Authority ( email )

Plot M193/M194- Nakawa Industrial Area
P.O.Box 7279
Kampala
Uganda

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