Is Uganda’s Tax Regime Equipped to Face Tax Avoidance by Multinationals in the Oil and Gas Sector?

Abstract

Multi - nationals often use legal means to organize their financial affairs in order to pay less tax leading to tax avoidance or planning. Some of the forms of tax avoidance discussed herein include: Transfer pricing, capital flight and tax havens, treaty shopping, tax incentives, tax credits and tax deductions. The study is done to legally analyze the tax regime in the face of tax avoidance practices by multi- nationals in Uganda’s oil and gas sector. This research paper contains; the introduction in chapter one, the literature review in chapter two, the methodology used in data collection is found in chapter three, Chapter four contains the difference between tax avoidance and tax evasion, Uganda’s fiscal and tax regime, Chapter five contains the country comparisons, Chapter six contains the findings from the field, the legal frame work, the structural frame work, the recommendations and conclusion. Lastly is the bibliography. In this study, it is recommended that tax avoidance can be reduced by governments ending tax havens and general tax reform. Further governments should consider placing a tax auditor in each multi- national company that is set up in the country. This will ensure that the tax due is payable and therefore prevent tax avoidance. Lastly the government must improve funding in the research on tax systems in order to equip the tax organs with the desirable skills and knowledge to counter tax avoidance.