TAX ACCOUNTING AND TAX ADVISORY SERVICE

The Ugandan government's plan to finance over 70% of its budget  from its revenue sources means it will demand for increased compliancy whose effect will be felt in Increased drastic enforcement measures.

What this means for a tax payer like you and me is to be more cautious in the way we handle our business and personal affairs in relation to tax, if we are to avoid unobjectionable tax assessments. We therefore come to you with this proposal for you to SIGN-UP for our Tax Accounting and Tax Advisory service;

Tax payers will begin to see tax amendmends that will give the tax authorities power to raise assessments in business areas or sectors that were earlier overlooked in the income tax law.

With increased pressure on tax compliancy, many firms like JW & PARTNERS and individuals do come up to try and help tax payers with their tax matters.

Word of caution though; Not all who purport to be tax consultants are competent enough to handle tax matters. Some business owners have sadly found that out the hard way. So the snag is How do you tell a genuine tax consultant from a quack?. Simple. You listen to them. If you are unable to asses them due to lack of technical knowledge, JW & PARTNERS has a service code named Hire of consultant service click here for more.

But if you feel you have fairly good tax knowledge to asses the competence of a firm then I advise that you ask them to make a pitch  on this service. Most of what you will hear is how good they are in Tax matters, who they have worked for and their experience, but that is not enough because any one can make those claims. what you would like to know about them is how they understand you as an entity and how they will go about this service to help you and its benefits.

Its important to note that Very few tax consultants are competent in all industry sectors. They specialize in sectors. High profile consultants have sometimes let down there clients by exposing them to incur high tax liability because they attempted to advise in sectors they (Tax consultant) were not familiar with.

JW & PARTNERS we are different .We shall tell you if we cannot handle your situation and will refer you to someone we know that can help you if there is genuinely a chance for you to eliminate or reduce the tax liability you are faced with.

So how does our Tax Accounting and Tax advisory service  proposal look like?

We have often received clients with complicated tax problems whose mess resulted from serious disclosures or non-disclosures of transactions in their Tax return over a period sometimes covering several financial years to which assessments have been raised. In most cases it is too late for them to be helped. But situations like these are avoidable, if one signed up for this service (Tax Accounting and Tax advisory service) before assessments are raised. This will enable us put your tax affairs in order through amendments and rewriting of your accounting records.

Remember a disclosure in your Tax return that was made in ignorance of the prevailing tax laws according to section 142(2) of the income tax, demands that the tax payer proves that he was ignorant of the law at the time of filing the return. Tax Authorities have argued that some scrupulous tax payers have attempted to evade taxes sighting ignorance.

When you Sign-up for the Tax Accounting and Tax Advisory services, we assign you a Team which will examine all disclosures in your tax returns ie VAT, PAYE, WHT, Income tax, custom Tax before filing it (return) with URA and also look at intended transactions of imports or domestic nature so that we can advise on the tax implications and avert the risks.

Our team will be able to help you avoid making wrong disclosures that may attract serious tax recomputations. This we do through proper TAX PLANNING which may include characterization of transactions in your tax return in a way that gives you (the tax payer) greater tax relief and security benefit.

Secondly our tax accounting service is where we help you appropriately treat every tax sensitive transaction in your accounting records. Now let me explain what this means…..take the simplest example of disposal of assets. When a company disposes of its assets, it is not enough to indicate the fair value gain from disposal in your return. Tax payers need to show in there accounting records that this asset had a certain amount of capital allowance so that the net of this income is allowed for tax purpose. Tax payers should arrive at this chargeable income from disposal of asset by calculating it out of the entity’s accounting system; However if this is not done correctly, it will come to haunt you when the Tax authorities request for the accounting records to trace this transaction. And if found that accounting records were not properly kept it becomes an offense to which a penalty is sought. That’s why its advisable to use a Tax consultant who is an accountant. 

Our Tax accounting service will ensure that management is properly advised that when capturing records in their accounting system, that, they also cautiously make proper description of transactions to avoid them being disallowed by the tax man which then can result into more tax.

Our Tax Advisory service will ensure that the tax payer safely registers new investments or enters transactions wisely drafting contract agreements that will make light the tax burden on him. Your Imports, acquiring or disposing of assets, management fees etc…will be safely handled.

OUR APPROACH;

Signing up for this service means you bring us on board to work with your Accounts and Finance department. Our Team will specifically be looking at your monthly returns ie. VAT, PAYE, WHT, Income Tax, Import tax return.

 Your accounting department prepares the returns but before submitting to URA, it hands it over to us to examine, we also look at the accounting records to ensure that the information in the tax return have been properly captured in the accounting system. Our team will ensure that all transactions are properly characterized and also establish if any transactions with serious tax implication had been omitted or prematurely included in the tax return.

All this work will ensure that you minimize your Taxes as much as possible or as much as allowable by the law.

To access this service you can call or write to us on email: jwandpartners@gmail.com , or call Managing Partner Mr. John Ochola +256 70 024835, Director Business Advisory Mr. Omony Patrick +256 772 564808  Office line; 0414 256408

HOW TO SIGN UP FOR THE SERVICE.

We have two categories of clientele that you can choose to be serviced as;

a)    Regular Clients

b)    Retainers Client

Regular client Category;

This is a one off or walk in client. He is charged per the assignment. Say if he has a one off transaction or undertaking that he/she wishes to be advised a bout the Tax implication. He receives a quotation for that assignment.

Retainer Client Category;

This is long term. Here a client signs with us a contract where he pays an agreed monthly retainer fee for which he receives unlimited consultations at no extra charge for all his company Tax needs. This may range from acquisition of credit, managing of company assets, mortgages, expansions etc….

Thank you

Regards

Patrick Omony ,

Director Business Advisory,

JW & PARTNERS 0772 564808

Other services we offer that is of great benefits to your company are;

a.    Company secretarial/Registration Advisory service

When you register an organization there are rules and regulations called company procedures which you are expected to abide with when managing the affairs of your organization. The basic ones are filing Annual returns, Appointing Auditors and holding annual general meetings.

Failure to comply with company procedures can be serious. The most important aspect of this that will cause you to incur a liability with the Authorities more specifically URA, is when they examine the information that you have disclosed to them in your annual return.

The income Tax law requires that companies or organization must keep proper records. Now reference to proper records do not only refer to invoices, receipts and LPOs , agreements and so forth, it  includes other supporting documents that need to be filed with the registrar of companies at the Uganda registration service bureau.

b.    Accounting Information and control management service.

In this we help you set up an acceptable and efficient way of how you can capture and manage your accounting records for both management and Tax purpose. This will came in handy especially when objecting to TAX assessments raised by URA. 

COMPANY SECRETARIAL SERVICE.

 We help organizations update their compliancy status with the registrar of companies URSB and also reconcile disclosures in their Tax returns with returns it has filed with the registrar of companies URSB.

Company secretarial services are one of the most overlooked services by management of most organizations yet failure to comply can cost a company a lot of money in Penalties and interest on penalty when noted and raised as queries in assessments by the authorities. The income tax Act and the Companies Act all emphasize on proper records which should be filed to them URA and URSB which records should agree.

Compliancy outcomes can tremendously improve the quality of management in terms of decisions making, implementation and redirecting the organization safely out of danger of authorities (penalties and fines) and right into the opportunities that an economic environment has to offer.

Also before I go into the depth of this service, let me first explain what a company secretary’s secretarial duties are;

When you register an organization there are rules and regulations called company procedures which you are expected to abide with when managing the affairs of your organization. The basic ones are filing Annual returns, Appointing Auditors and holding annual general meetings, which you might have done by now.

What I’ve just explained is the basic company compliancy procedures. An organisation needs to watch out for compliancy activities that if not dealt with can cause the organisation to incur  liabilities more specifically URA. This usually occurs when they examine the information that you have disclosed to them in your Tax return and demand for evidence.

The income Tax law requires that companies or organization must keep proper records. Now reference to proper records does not only refer to invoices, receipts and LPOs , agreements and so forth, it  includes other supporting documents that need to be filed with the registrar of companies at the Uganda registration service bureau.

These documents will defend transactions that have been disclosed or entered in accounting records of the company or organization. Decisions of actions taken or to be taken by the company are arrived at by way of resolutions either in an Annual General Meeting AGM or Extraordinary General meeting EGM. This does not only apply to big companies, it is for all companies that are legally constituted under the Uganda companies Act.

 Therefore, transactions or any other activities that the company or organization finds its self undertaking should follow these procedures.

For example if you filed say an income tax return to URA and in it your financial statements shows that the company was not paying rent simply because the directors of the company owned the property and had leased it to the company, this has to be supported inform of resolutions made in an AGM or EGM to which the document should have been filed to this effect with the registrar of companies as the law requires it. Failure to abide by this is an open check for the Tax man URA to charge you with falsification of information filed in your income Tax return under section 142 of the income tax Act. You can further be charged with failure to keep proper records under section 139. To which the penalty is to pay twice the amount of tax payable for that financial year plus interest.

Now you should not get worried. If you do not have a person with expertise about such matters in your organization. A professional practicing account can do it for you.

Word of caution though, that not all accountants have this expertise, it is those Accounting firms who have developed strength through time tested success of correct application of this expertise like JW & PARTNERS who can help you better.

But, how do you tell who is competent to help you with your company secretarial challenges?. It is simple; it’s the way they explain it(Company secretarial services) to you just like how I’m doing now. So if your accountant or Auditor has never raised this as an issue while with you do not bother asking him about it he will let you down.

It’s not enough to just claim that we also offer company secretarial /registration service like most individuals and firms are doing, just visit their websites and you will see what I’m talking about. The danger in using the services of such people is that vital company procedures with serious tax implication and severe penalties are overlooked because of their lack of in-depth knowledge of the service.

We JW & PARTNERS have been in this business long enough not to allow such simple professional oversights to occur to you. So what are you waiting for SIGN-UP for the service Now. Call or write.

There is also another perspective of the same. let’s say you made resolutions and properly filed them with the registrar. Where the tax man will try to make you pay, will be in your accounting records(system). Remember your records with the registrar of companies will only support your final financial statement reports through your accounting system.

 Take this example; if in one of your resolutions the directors had resolved to increase the company’s liquidity by borrowing from private individual like family members and friends and also through financial institution. Your accounting records should show how these monies come in and how it was spent. Failure to show this is failure to keep proper records. Remember again in the auditor’s report of your audited accounts; it states that ‘’The financial statements are in line with the accounting records’’. Failure to prove this to be so will be interpreted by URA as falsification of records under section142.of the income Tax Act.

Companies and organizations who have suffered this full scale interpretation have been severely crippled to being non existence. Some of them will make blanket statements that taxes are putting them out of business yet the problem is compliancy. So don’t be like them make that wise decision now and SIGN UP for this service it will be worth it.

This is Our Approach in serving you;

Immediately you SIGN-UP, we start with first carrying out a thorough examination of your records to URA over at least five years because that is how long URA expects you to keep these historical records, and then look into your account with the registrar of companies or URSB to determine, to what extent you were compliant with the basic company procedures and filling of resolutions.

                                

 e-mail.jwandpartners@gmail.com, 0704024835 Managing Partner John Ochola,    0772 564808 Director Business Advisory Patrick Omony  Office line; 041-4-256408.

HOW TO SIGN UP FOR THE SERVICE.

We have two categories of clientele that you can choose to be serviced as;

a)    Regular Clients

b)    Retainers Client

Regular clients Category;

This is a one off or walk in client. He is charged per the assignment. Say if he has a one off transaction or undertaking that he/she wishes to be advised a bout company procedures to follow. He receives a quotation for that assignment.

Retainer Client Category;

This is long term. Here a client signs with us a contract where he pays an agreed monthly retainer fee for which he receives unlimited consultations at no extra charge for all his company secretarial needs. This may range from acquisition of credit, managing of company assets, mortgages, expansions etc….

Thank you

Regards

Patrick Omony

Director Business Advisory

JW & PARTNERS 0772 564808.

Other services we offer that is of great benefits to your company are;

a.    Tax Accounting and Tax Advisory service

There is Tax accounting and Management accounting and these should not be confused;

If a director of accompany withdraws money from the company to go an undertake duties of the company. For management accountability purpose it can be captured as money paid to director x, this from a tax point can be interpreted as income to the director to which it will be added back by the tax man to be taxed as PAYE or income tax in the director’s return. Usually this is discovered when URA request for your accounting records as they enforce compliancy.

This therefore means that companies should start accounting in their books of  information in such a manner that will a void more tax liability. Your accounting packages should be configured to cater for this. You can also sign up you company for this service Tax accounting and Tax Advisory service.

b.    Accounting Information and control management service.

In this we help you set up an acceptable and efficient way of how you can capture and manage your accounting records for both management and Tax purpose. This will came in handy especially when objecting to TAX assessments raised by URA.

GET THE BEST FROM YOUR ANALYSIS BOOK

The ever fast moving business environment, has caused many to seek efficiency through automation and the clever selling techniques by vendors of accounting packages, has led most organizations to abandon hard cover analysis books prematurely and opt for soft ware accounting system to which to their dismay are wondering why it cannot generate the information that they need.

These software packages are greatly underutilized because most organization didn’t understand the fundamental principles of the analysis book.

An analysis book is a good part of an accounting system and if properly designed to capture information, can help shape the way source documents like receipts, vouchers and invoice are written, prepared and filed. 

From the analysis book one can know so much about how the business is running which is very critical for planning.

There is always a disparity between the financial statements of an organization and the analysis book format which shouldn’t be that case, given the fact that financial statements are  prepared largely from analysis books. 

An analysis book may not closely follow the standard accounting principles which is why organizations will differ in how they design their analysis books to fulfill their management objectives. That being said, the analysis book format should not violate the core accounting principle otherwise it will cease to serve its purpose of meaningfully reporting events that have transpired in the enterprise or organization.

Any organization thinking of automation or buying accounting software, should first of all understand the principles of the analysis book , tailor one for its self then upgrade its accounting system by automation.

An analysis book will capture receipts and payments and classify these incomes or expenditures in such a way that it reconciles easily with your budget and strategic plan. The concept of the analysis book will help an organization design meaningful budget lines, differentiate capital expenditures from current expenditures as transactions are taking place in real time as well as showing you your cash flows and what money is at hand and at bank at any one time (t).  

Developing a format in the analysis book is not quite that simple and JW & PARTNERS helps entities in this area.

Like all our other services, formatting an analysis book is a service that JW & PARTNERS does very well, and we would be happy to service your organization in this respect.

We do format and develop manuals on how the analysis book should be used, very important for reviews and training of new personnel.