Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Act

Section 1. Interpretation Section In this Act, unless the context otherwise requires— “ Agreement ” means the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information; “ beneficial owner ” means a natural person who ultimately owns or controls a customer or the natural person on whose behalf a transaction is conducted and includes any natural person who exercises ultimate control over a legal person or arrangement and— (a) in relation to a legal person, includes— (i) the natural person who either directly or indirectly, alone or jointly, holds at least ten percent of shares or voting rights of the legal person; (ii) the natural person who exercises control of the legal person through other means, including personal or financial superiority or relationship; and (iii) the natural person who has power to make or influence decisions of a legal person; (iv) where exceptionally, no natural person is identified in subparagraphs (i) , (ii) or (iii) , the natural person who holds the position of senior managing official; (b) in relation to trusts includes— (i) the settlor; (ii) the trustee; (iii) the protector; (iv) the beneficiary or the individual...

Section 10. Regulations Section 10(1) The Minister may make regulations to give effect to the provisions of this Act. Section 10(2) Without prejudice to the generality of subsection (1) , the Minister shall make regulations for— Section 10(2)(a) the inspection of records and information held by reporting financial institutions; Section 10(2)(b) the procedure for conducting due-diligence; and Section 10(2)(c) any other matter incidental to the better carrying out of the purposes of this Act and the prescription of anything required or authorised under this Act. Section 10(3) Regulations made under this Act may, in respect of any contravention of any of the regulations— Section 10(3)(a) prescribe a penalty not exceeding a fine of five thousand currency points or imprisonment for a term not exceeding ten years, or both; Section 10(3)(b) in the case of a continuing offence, prescribe an additional penalty not exceeding a fine of five hundred currency points in respect of each day on which the offence continues; Section 10(3)(c) prescribe a penalty not exceeding a fine of five thousand five hundred currency points or imprisonment for a term not exceeding ten years, or both in respect of...

Section 11. Power to amend Schedule 1 Section The Minister may, by statutory instrument, with the approval of Cabinet, amend Schedule 1 to this Act.

Section 2.Conventionto have force of law in Uganda Section 2(1) The Convention on Mutual Administrative Assistance in Tax Matters specified in Schedule 2, except for article 2(1)(b) , (i) , (ii) , (iii) (E) and (iv) , shall have the force of law in Uganda. Section 2(2) Without prejudice to the general effect of subsection (1) , all rights, liabilities, obligations and restrictions created or arising by or under the Convention and all remedies and procedures provided for by or under the Convention shall be recognised and available in law and shall be enforceable and allowed in Uganda. Section 2(3) The Competent Authority may in the implementation of this Act apply the commentaries to the Convention in the implementation of this Act.

Section 3.Agreementto have force of law in Uganda Section 3(1) The Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information specified in Schedule 3 to this Act shall have the force of law in Uganda. Section 3(2) Without prejudice to the general effect of subsection (1) , all rights, liabilities, powers, obligations and restrictions created or arising by or under the Agreement and all remedies and procedures provided for by or under the Agreement shall be recognised and available in law and shall be enforceable and allowed in Uganda. Section 3(3) The Competent Authority may in implementing the provisions of the Agreement apply the commentaries to the Agreement .

Section 4.Common Reporting Standardto have force of law in Uganda Section 4(1) The Common Reporting Standard specified in Schedule 4 shall have the force of law in Uganda. Section 4(2) Without prejudice to the general effect of subsection (1) , all rights, liabilities, powers, obligations and restrictions created or arising by or under the Common Reporting Standard and all remedies and procedures provided for by or under the Common Reporting Standard shall be recognised and available in law and shall be enforceable and allowed in Uganda. Section 4(3) The Competent Authority may apply the commentaries to the Common Reporting Standard to implement the provisions of the Common Reporting Standard .

Section 5. Due diligence Section 5(1) A reporting financial institution shall, with effect from 1st January, 2024, apply the due diligence, described in sections II to VII of the Common Reporting Standard as specified in Schedule 4 to this Act. Section 5(2) An account holder or a controlling person shall notify the reporting financial institution when there is a change in circumstances, including a change in the residence of the account holder or controlling person for tax purposes, within thirty days from the occurrence of the change. Section 5(3) A reporting financial institution shall maintain the information obtained in the process of conducting due diligence under this Act, for the period during which the account is active and, for at least five years from the date when the account is closed.

Section 6. Reporting obligations Section 6(1) A reporting financial institution shall submit a return to the Competent Authority providing the information on the account held by a non­resident person or on a reportable account for the year ending 31 st December in every calendar year and by the 31 st day of May of the following year. Section 6(2) Where a reporting financial institution applies the procedures of due diligence described in sections II to VII of the Common Reporting Standard as specified in Schedule 4 to this Act for a calendar year, and no financial account is identified as a reportable account, the reporting financial institution shall file a return which shall provide that the reporting financial institution maintains no such reportable accounts in respect of the calendar year. Section 6(3) The Competent Authority shall, by notice in the Gazette and in a newspaper of wide circulation, prescribe the format of the return for obtaining the information referred to in subsection (1) .

Section 7. Offences relating to automatic exchange of information Section fails to file a return on the due date for purposes of the automatic exchange of information, is liable to a civil penalty of two hundred fifty currency points for each day of default;

Section 8. Anti-avoidance provision Section Where a person enters into any arrangement or engages in a practice, the main purpose or one of the purposes of the Agreement or practice may reasonably be considered to be circumventing or avoiding an obligation imposed under this Act, the Competent Authority may recharacterise the transaction or an element of the transaction as part of the anti-avoidance scheme and shall require the person to comply with the obligations under this Act.

Section 9. Amendment ofConventionorAgreement Section 9(1) Where, after the commencement of this Act, the Convention or Agreement is amended in accordance with the provisions of article 24(3) of the Convention or section 6 of the Agreement , and ratified under Article 123 of the Constitution , the Minister shall cause a copy of the amendment to be laid before Parliament; and the amendment shall, for the purposes of this Act, come into operation or be deemed to have come into operation on the date it is laid before Parliament. Section 9(2) The Minister shall publish the amendment to the Convention or agreement in the Gazette .