Individual Corruption

According to Global Integrity 2009, given the high levels of corruption in the tax administration, enforcement of tax laws is often non-transparent. This high perception of corruption is epitomised by the fact that the Uganda Revenue Authority (URA) was named to be among the most corrupt institutions in Uganda in the Inspectorate of Government 2008. According to the report, a significant part of the surveyed households reported to have paid a bribe in relation to tax administration.

Business Corruption

Collection of taxes in Uganda is generally a major problem and lacks transparency. Nonetheless, the US Department of State 2010 reports that the Uganda Revenue Authority (URA) has improved its efficiency, boosting the transparency and increasing tax compliance. Partially, this success is based on an internal restructuring. It is further reported that due to the relative ease of enforcing compliance, the URA often targets large, foreign-owned companies. Government tax revenues constituted approximately 68% of the national budget in the fiscal year 2009-2010.

Despite this relative success, rampant tax evasion continues to be facilitated by collusion between the National Resistance Movement, URA staff, the police, and businessmen, according to Global Integrity 2008. Furthermore, Global Integrity 2009 reports that, in practice, tax laws are seldom enforced uniformly and without discrimination and hence, some groups occasionally evade tax laws.

Political Corruption

According to Transparency International East African Bribery Index 2010, the Uganda Revenue Authority (URA) is ranked as the fourth most corruption prone institution, out of 116 different institutions in the East African region. This result also indicates that the URA is the most corrupt institution in the country.

Frequency

The World Bank & IFC: Doing Business 2011:
- A medium-sized company makes an average of 32 tax payments and spends 161 hours per year managing the administrative burden of paying taxes.

- The total tax rate as percentage of profit is around 36%.

Transparency International: Global Corruption Barometer 2010:
- Nearly 39% of households who had contact with tax revenue services throughout 2009 report to have paid a bribe.

Transparency International: East Africa Bribery Index 2010:
- Uganda Revenue Authority is ranked as the most corrupt institution in the country.

- The average size of bribe reported as paid by a household respondent is UGX 1,102,987.

- Of all the bribes reportedly paid by the household respondents, 24.1% were paid to the Uganda Revenue Authority.

Afrobarometer: Summary of Results Uganda 2010:
- 38%, 35% and 15% of the respondents in this household survey considered some, most or all of the tax officers to be corrupt.

Inspectorate of Government: The 3rd National Integrity Survey 2008:
- Of all public services where companies have reported that they have paid a bribe, 36.8% was for tax payment services, thereby ranking as the most corrupt public service.