A Civil Society statement, released by the Tax Justice Alliance and SEATINI-Uganda, expresses concern regarding corporations dodging tax using the Uganda-Mauritius Double Taxation Agreement.
Double Taxation Agreements (DTA) are a tool used by countries to avoid double taxation of individuals and companies operating in more than one country. However, DTAs have become a way for multinational companies to completely dodge payments of tax.
The recent Mauritius leaks revealed how companies set up in Mauritius had invested largely in Ugandan companies and to that effect reduced or completely eroded their tax liability in Uganda.
The statement demands government to take steps to plug the loopholes which have facilitated tax avoidance and evasion in Uganda.
Read about the specific policy asks in the full statement below: