Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Act

Section 1 lists definitions of terms used in the Act, including 'Agreement', 'beneficial owner', 'Common Reporting Standard', 'Competent Authority', 'Convention', 'currency point', 'Minister', and 'reportable jurisdiction'.

Jurisdiction: Uganda
Instrument: Act or statute
Citation: Chapter 335
Version: 31 Dec 2023
Language: en
Official source: View official record ↗

Source attribution: Source: Uganda Legal Information Institute

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About this statute

Section 10 authorises the Minister to make regulations (may) and requires the Minister to make regulations for inspection of records, due-diligence procedures, and other incidental matters (shall). It also allows regulations to prescribe penalties including fines in currency points, imprisonment up to ten years, daily fines for continuing offences, higher penalties for repeat offences, and forfeiture. The Minister may amend Schedule 1 to this Act by statutory instrument with the approval of Cabinet. Section 1 lists definitions of terms used in the Act, including 'Agreement', 'beneficial owner', 'Common Reporting Standard', 'Competent Authority', 'Convention', 'currency point', 'Minister', and 'reportable jurisdiction'. The Convention on Mutual Administrative Assistance in Tax Matters specified in Schedule 2 is given the force of law in Uganda; rights, liabilities, obligations, restrictions, remedies and procedures under the Convention are recognised and enforceable in Uganda; and the Competent Authority may apply the Convention commentaries when implementing this Act. The Multilateral Competent Authority Agreement specified in Schedule 3 shall have the force of law in Uganda.

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Provisions of Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Act

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1. Interpretation
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Section 1 lists definitions of terms used in the Act, including 'Agreement', 'beneficial owner', 'Common Reporting Standard', 'Competent Authority', 'Convention', 'currency point', 'Minister', and 'reportable jurisdiction'.

Section 1. Interpretation Section In this Act, unless the context otherwise requires— “ Agreement ” means the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information; “ beneficial owner ” means a natural person who ultimately owns or controls a customer or the natural person on whose behalf a transaction is conducted and includes any natural person who exercises ultimate control over a legal person or arrangement and— (a) in relation to a legal person, includes— (i) the natural person who either directly or indirectly, alone or jointly, holds at least ten percent of shares or voting rights of the legal person; (ii) the natural person who exercises control of the legal person through other means, including personal or financial superiority or relationship; and (iii) the natural person who has power to make or influence decisions of a legal person; (iv) where exceptionally, no natural person is identified in subparagraphs (i) , (ii) or (iii) , the natural person who holds the position of senior managing official; (b) in relation to trusts includes— (i) the settlor; (ii) the trustee; (iii) the protector; (iv) the beneficiary or the individual benefitting from the trust who is yet to be determined; and (v) any other natural person exercising ultimate control of the trust; and (c) in relation to other legal arrangements similar to trusts, the natural person who holds positions equivalent to the positions referred to in subparagraph (b) ; “ Common Reporting Standard ” means the standard for automatic exchange for financial accounts, information in tax matters, developed by the Organisation for Economic Co-operation and Development as specified in Schedule 4; “ Competent Authority ” means the Commissioner General, Uganda Revenue Authority; “ Convention ” means the Convention on Mutual Administrative Assistance in Tax Matters as amended by the Protocol amending the Convention on Mutual Administrative Assistance in Tax Matters; “ currency point ” has the value assigned to it in Schedule 1 to this Act; “ Minister ” means the Minister responsible for finance; “ reportable jurisdiction ” means— (a) for the purposes of applying the due diligence procedures required by section II to VII of the Common Reporting Standard specified in Schedule 4 for a resident for tax purposes, of a jurisdiction other than Uganda; and (b) for the purposes of reporting the information required by section 1 of the of the Common Reporting Standard specified in Schedule 4, for a resident for tax purposes of a jurisdiction other than Uganda.
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10. Regulations
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Section 10 authorises the Minister to make regulations (may) and requires the Minister to make regulations for inspection of records, due-diligence procedures, and other incidental matters (shall). It also allows regulations to prescribe penalties including fines in currency points, imprisonment up to ten years, daily fines for continuing offences, higher penalties for repeat offences, and forfeiture.

Section 10. Regulations Section 10(1) The Minister may make regulations to give effect to the provisions of this Act. Section 10(2) Without prejudice to the generality of subsection (1) , the Minister shall make regulations for— Section 10(2)(a) the inspection of records and information held by reporting financial institutions; Section 10(2)(b) the procedure for conducting due-diligence; and Section 10(2)(c) any other matter incidental to the better carrying out of the purposes of this Act and the prescription of anything required or authorised under this Act. Section 10(3) Regulations made under this Act may, in respect of any contravention of any of the regulations— Section 10(3)(a) prescribe a penalty not exceeding a fine of five thousand currency points or imprisonment for a term not exceeding ten years, or both; Section 10(3)(b) in the case of a continuing offence, prescribe an additional penalty not exceeding a fine of five hundred currency points in respect of each day on which the offence continues; Section 10(3)(c) prescribe a penalty not exceeding a fine of five thousand five hundred currency points or imprisonment for a term not exceeding ten years, or both in respect of a second or subsequent offence; and Section 10(3)(d) provide for the forfeiture of anything used in the commission of the offence.
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11. Power to amend Schedule 1
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The Minister may amend Schedule 1 to this Act by statutory instrument with the approval of Cabinet.

Section 11. Power to amend Schedule 1 Section The Minister may, by statutory instrument, with the approval of Cabinet, amend Schedule 1 to this Act.
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2.Conventionto have force of law in Uganda
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The Convention on Mutual Administrative Assistance in Tax Matters specified in Schedule 2 is given the force of law in Uganda; rights, liabilities, obligations, restrictions, remedies and procedures under the Convention are recognised and enforceable in Uganda; and the Competent Authority may apply the Convention commentaries when implementing this Act.

Section 2.Conventionto have force of law in Uganda Section 2(1) The Convention on Mutual Administrative Assistance in Tax Matters specified in Schedule 2, except for article 2(1)(b) , (i) , (ii) , (iii) (E) and (iv) , shall have the force of law in Uganda. Section 2(2) Without prejudice to the general effect of subsection (1) , all rights, liabilities, obligations and restrictions created or arising by or under the Convention and all remedies and procedures provided for by or under the Convention shall be recognised and available in law and shall be enforceable and allowed in Uganda. Section 2(3) The Competent Authority may in the implementation of this Act apply the commentaries to the Convention in the implementation of this Act.
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3.Agreementto have force of law in Uganda
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The Multilateral Competent Authority Agreement specified in Schedule 3 shall have the force of law in Uganda.

Section 3.Agreementto have force of law in Uganda Section 3(1) The Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information specified in Schedule 3 to this Act shall have the force of law in Uganda. Section 3(2) Without prejudice to the general effect of subsection (1) , all rights, liabilities, powers, obligations and restrictions created or arising by or under the Agreement and all remedies and procedures provided for by or under the Agreement shall be recognised and available in law and shall be enforceable and allowed in Uganda. Section 3(3) The Competent Authority may in implementing the provisions of the Agreement apply the commentaries to the Agreement .
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4.Common Reporting Standardto have force of law in Uganda
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The Common Reporting Standard has the force of law in Uganda; the Competent Authority may apply the commentaries to implement it.

Section 4.Common Reporting Standardto have force of law in Uganda Section 4(1) The Common Reporting Standard specified in Schedule 4 shall have the force of law in Uganda. Section 4(2) Without prejudice to the general effect of subsection (1) , all rights, liabilities, powers, obligations and restrictions created or arising by or under the Common Reporting Standard and all remedies and procedures provided for by or under the Common Reporting Standard shall be recognised and available in law and shall be enforceable and allowed in Uganda. Section 4(3) The Competent Authority may apply the commentaries to the Common Reporting Standard to implement the provisions of the Common Reporting Standard .
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5. Due diligence
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Reporting financial institutions must apply the Common Reporting Standard due diligence from 1 January 2024; account holders or controlling persons must notify changes within 30 days; reporting financial institutions must retain due diligence information while the account is active and for at least five years after closure.

Section 5. Due diligence Section 5(1) A reporting financial institution shall, with effect from 1st January, 2024, apply the due diligence, described in sections II to VII of the Common Reporting Standard as specified in Schedule 4 to this Act. Section 5(2) An account holder or a controlling person shall notify the reporting financial institution when there is a change in circumstances, including a change in the residence of the account holder or controlling person for tax purposes, within thirty days from the occurrence of the change. Section 5(3) A reporting financial institution shall maintain the information obtained in the process of conducting due diligence under this Act, for the period during which the account is active and, for at least five years from the date when the account is closed.
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6. Reporting obligations
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Reporting financial institutions must submit an annual return to the Competent Authority with information on accounts held by non‑residents (year ending 31 December) by 31 May following the year; if due diligence finds no reportable accounts the institution must file a return stating no reportable accounts; the Competent Authority must prescribe the return format by notice in the Gazette and a widely circulated newspaper.

Section 6. Reporting obligations Section 6(1) A reporting financial institution shall submit a return to the Competent Authority providing the information on the account held by a nonresident person or on a reportable account for the year ending 31 st December in every calendar year and by the 31 st day of May of the following year. Section 6(2) Where a reporting financial institution applies the procedures of due diligence described in sections II to VII of the Common Reporting Standard as specified in Schedule 4 to this Act for a calendar year, and no financial account is identified as a reportable account, the reporting financial institution shall file a return which shall provide that the reporting financial institution maintains no such reportable accounts in respect of the calendar year. Section 6(3) The Competent Authority shall, by notice in the Gazette and in a newspaper of wide circulation, prescribe the format of the return for obtaining the information referred to in subsection (1) .
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7. Offences relating to automatic exchange of information
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Failure to file a return for automatic exchange of information on the due date attracts a civil penalty of two hundred fifty currency points for each day of default.

Section 7. Offences relating to automatic exchange of information Section fails to file a return on the due date for purposes of the automatic exchange of information, is liable to a civil penalty of two hundred fifty currency points for each day of default;
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8. Anti-avoidance provision
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If a person arranges or practices something mainly to circumvent obligations under this Act, the Competent Authority may recharacterise the transaction and shall require the person to comply with the Act.

Section 8. Anti-avoidance provision Section Where a person enters into any arrangement or engages in a practice, the main purpose or one of the purposes of the Agreement or practice may reasonably be considered to be circumventing or avoiding an obligation imposed under this Act, the Competent Authority may recharacterise the transaction or an element of the transaction as part of the anti-avoidance scheme and shall require the person to comply with the obligations under this Act.
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9. Amendment ofConventionorAgreement
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When the Convention or Agreement is amended and ratified as specified, the Minister must lay a copy of the amendment before Parliament and must publish the amendment in the Gazette.

Section 9. Amendment ofConventionorAgreement Section 9(1) Where, after the commencement of this Act, the Convention or Agreement is amended in accordance with the provisions of article 24(3) of the Convention or section 6 of the Agreement , and ratified under Article 123 of the Constitution , the Minister shall cause a copy of the amendment to be laid before Parliament; and the amendment shall, for the purposes of this Act, come into operation or be deemed to have come into operation on the date it is laid before Parliament. Section 9(2) The Minister shall publish the amendment to the Convention or agreement in the Gazette .

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Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Act

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