You are on page 1of 3

URA/TID/002/2012/13: TIN FRAUD ALERT

Tax Identification Numbers are unique identification numbers allocated free of charge to
companies and individuals to enable them transact with URA when paying taxes.
With the introduction of ETAX new TIN numbers were issued to taxpayers for
compatibility with the new system. It has come to the notice of URA that several
unscrupulous persons are using other peoples TINs to commit fraud and evade taxes.

TIN fraud has manifested in the following ways:-
SCENARIO 1.
Fraudsters contact foreign suppliers and obtain goods on credit while pretending to
be another company and later failing to pay for the goods thereby leaving the
company stuck with the debt.

SCENARIO 2.
Obtaining details of a person and using them to transfer a vehicle to ones names
and later using the vehicle as collateral to obtain a loan from a bank or money
lender. This causes a caveat to be put on the vehicle without the owners
knowledge or authority.
SCENARIO 3.
Using the names of another person with whom one may share names with to
import a vehicle or goods.
The owner only gets to know about it when a message is received from URA
thanking him/her for using ETAX.

SCENARIO 4.
Companies or individuals identity information is stolen with the intention of filing
false returns and claiming tax refunds.


GOING FORWARD
Tax Investigations Department is currently investigating various cases of TIN
fraud.
The general public is therefore warned to beware of unscrupulous persons who
may want to misuse their TINS for purposes of committing fraud.


ISSUES TO NOTE:

TINs are personal Tax Identification numbers. Under no circumstances should
they be shared or offered to another individual who may want to import for
instance a vehicle or any other goods.

Taxpayers should be alert if they receive messages from URA stating for example
that:-
o Thank you for importing a vehicle and using ETAX
o We have received payment of taxes worth so much.
If the taxpayer has not transacted with URA at all, a report should be made
immediately to the nearest URA office.

TIN misuse is a violation of the law and perpetrators will be prosecuted under the
relevant laws of Uganda.



REFERENCES TO CONSIDER


The following related references will assist taxpayers in determining whether their
arrangement is subject to or contrary to the relevant laws.
Tax Laws / Other
Laws :
VAT Act CAP 349, Income Tax Act CAP 340, Penal Code
Act
Date issued: 4
th
Quarter 2012-2013
Authorized by Commissioner, Tax Investigations, Uganda Revenue
Authority
Contact(via email): info@ura.go.ug: or Comp@ura.go.ug
website: http:// ura.go.ug