The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Uganda Bankers Association (UBA) is challenging a directive to its members requiring them to furnish information related to all the accounts they hold.
Uganda Revenue Authority (URA) last month wrote to all Ugandan banking institutions asking them to release demographic and financial including account turnover and balances on all accounts held for the years 2016 and 2017 on the basis of section 42 of the Tax Procedures Act 2014.
In a statement on Sunday, UBA said its members on Friday “reached a decision on Friday April 6 to file a petition in the Constitutional Court contesting the constitutionality of the various provisions of the tax law relied on by the URA in their notice.”
The statement, signed by UBA chairman Fabian Kasi and Executive Director Wilbrod Owor added that “The UBA Members are supportive of initiative to grow tax revenue are URA’s primary custodial agents for collection of taxes. Nonetheless, the request for information contained in the notices raises a number of legal issues concerning constitutionally protected fundamental rights which could expose the member financial institutions to legal liability.”
UBA said member financial institutions are also concerned about the possible wider impact of this request for information and the potential unintended consequences if may trigger.
The statement concluded that ” We wish to reassure all customers and stakeholders that the UBA members will continue to observe and maintain their contractual obligation of confidentiality and to uphold and protect their customers’ right to privacy as they seek to have this matter positively resolved.”
The association said members are currently holding consultations with various authorities and stake holders including Bank of Uganda and URA to resolve the matter.
Meanwhile, The Uganda Law Society (ULS) also released a statement, in which they said ” all financial institutions and non-bank financial institutions are under a constitutional duty to ensure that no person interferes with their client’s privacy, in this case, divulging information pertaining to private property held on the respective accounts.”
They promised to support the bankers association.
