URA’S $11.5M Tax System in Turmoil After Firing Indian Tech Giant

KAMPALA: Shockwaves are rippling through Uganda’s tax administration after insiders revealed that the Uganda Revenue Authority (URA) abruptly cut ties with software experts linked to the global IT powerhouse Tata Consultancy Services (TCS), the firm that helped build the country’s multi-million-dollar tax management system.

The development has reportedly thrown URA’s digital tax operations into confusion and mounting pressure, forcing overwhelmed staff to revert to manual processes as system challenges pile up.

THE $11.5 MILLION TAX MACHINE

TCS — a flagship company of the Tata Group — previously designed and installed the Integrated Tax Administration System (ITAS) for URA in a project worth about $11.5 million.

The sophisticated platform was meant to manage key tax streams including Income Tax, VAT and Withholding Tax, helping the government track revenue more efficiently and widen the tax base.

For years, the system formed the backbone of URA’s digital tax collection infrastructure.

But insiders now say the authority terminated support arrangements with the Indian IT experts, triggering serious operational headaches.

SYSTEM UNDER PRESSURE

Sources inside URA claim that after the exit of the foreign specialists, technical glitches and reconciliation challenges have increased, leaving the in-house IT team struggling to keep up.

“They were the people who built and understood the system architecture,” an insider said.

“Once they left, everything became harder to maintain.”

Staff in some units are reportedly working long hours reconciling data manually as the system struggles to keep pace with transactions.

CLIENTS START COMPLAINING

The disruptions are now beginning to affect taxpayers and clearing agents who depend on URA’s digital platforms for payment confirmations and tax account updates.

Some users complain that delays in reflecting payments and system slowdowns are becoming more frequent.

“It used to be quick,” one taxpayer said.
“Now sometimes the system hangs or takes too long to update.”

DIGITAL TRANSFORMATION AT RISK?

TCS is widely recognized as one of the world’s largest IT services companies, with operations across Africa and Asia supporting governments and major corporations.

The company’s systems were intended to help URA reduce operational costs, strengthen financial accountability and modernize revenue collection.

But insiders warn that without proper technical support, the sophisticated platform could become difficult to sustain at peak efficiency.

PRESSURE MOUNTS

With complaints rising and staff reportedly stretched thin, pressure is mounting on URA leadership to stabilize the system and restore confidence in the digital tax platform.

Industry observers say the situation highlights how dependent modern tax systems are on specialized technical expertise.

For now, however, insiders say the once-celebrated digital tax machine is creaking under pressure, leaving the tax authority scrambling to keep the system running.

URA officials allegedly terminated the contract claiming the foreign company was “too expensive”.

The termination of the Indian support team reportedly sparked serious tensions inside the tax authority.

Sources claim that during the heated transition period, one senior URA official allegedly threatened to shoot one of the foreign support staff members during a dispute over access to the system infrastructure.

The claim could not be independently verified, but insiders say the incident left staff shocked and deepened the hostility surrounding the contract termination.

“Connected” Replacement Firm

Even more controversial are claims that URA quickly replaced the Indian software provider with a local company allegedly linked to powerful officials within the authority.

Critics inside URA claim the local firm lacks the technical capacity to manage the complex tax ledger system previously handled by the foreign specialists.

“They chased away people who built and understood the system,” another insider said.
“Now the people replacing them are learning on the job.”

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