Patience T. Rubagumya, URA’s Commissioner Legal Services and Board Affairs
Lawyers have been urged to help their clients ably comply with tax obligations through offering appropriate and rightful legal advice. This appeal was made by URA’s Commissioner Legal Services and Board Affairs, Patience T. Rubagumya in her speech at the Uganda Law Society annual conference at Mestil Hotel, Kampala.
Rubagumya told the lawyers that while they represent their clients, it is important to offer right tax advise especially at a time where the East African Community (EAC) is deeply integrated in trade as the region leaps into the African Continental Free Trade Area (AfCFTA).
“Lawyers as representatives are very instrumental in fostering compliance through advisory and reminding clients of their obligations. You should also competently offer solutions to investors about the EAC market. We need lawyers to close deals but also advise clients correctly,” emphasised Rubagumya.
Rubagumya while remarking on the “tax regime in east African market and African regional market” tipped lawyers on the opportunities in the tax practice which could be taken advantage of as opposed to the basic traditional practice. Such opportunities included enrolling as tax agents. She added that this is a field with good business which lawyers have neglected in the past yet it requires competent minds with right certification to foster compliance.
“Let us expand our practice but as we do this, reputation in the East African market is key. Multinationals will easily trust a lawyer who is registered as a tax agent as well to handle their tax matters. The competition in regional markets is tight so you need to have an edge over the others with legitimacy, credibility and ability to handle tasks,” Rubagumya noted.
These remarks come at a time when Uganda like its counterparts in the East African Community is bracing itself for the AfCFTA. As part of Africa’s agenda 2063, the agreement seeks to expand market for the goods and services through unified infrastructure aimed at the reduction of tariffs to encourage trade and investment.
The AfCFTA involves capital for investments among others which require legal advisory on fiscal regimes especially on incentives and other negotiations for the benefit of investing parties which will in the end create development for signatory countries like Uganda.
The exchange of services as expected of this age will require infrastructure like information technology in the free trade area. This being one of the untapped areas will necessitate policy convergence to appropriately plug the legal gaps, that if not addressed, may lead to exploitation and loss of revenue by government. Such topics will require special interest of the legal minds.
Uganda is currently signatory to other agreements like the Double Tax Agreements with Zambia, Italy, Mauritius, India, Netherlands, Norway and the United Kingdom. Legal professionals have a role to play in dissecting the terms but most importantly the benefits their clients can pick from such tools.
As Uganda is taking on such measures to open up and attract investment, lawyers have a space to fill on investment and tax advisory but this should also be seen as an opportunity to break the monotony in practice through expansion and diversification.
