An Overview of the Legal Regime for Oil Revenue in Uganda

ABSTRACT This study explored an overview of the legal regime for oil revenue in Uganda which intended to help the people of Uganda and government to üriplement their expectations from oil. This requires putting in place new legislations for oil and gas administration and management of petroleum revenues. This research provides details on how the anticj~ated revenues shall be managed and integrated into the existing government systems with a view of miti~qating the overall impact of these revenues on the economy. The research required the highest standards of transparency and accountability in the management of oil and gas revenues and gives the institutional and governance structures to be used to achieve this. Lastly, to promote harmony and socI~3i cohesion, the research provided for a mechanism for the sharing of royalty revenues with the local governments within the oil producing region.

TABLE OF CONTENTS

DECLARATION A

DECLARATION B ~ii

ACKNOWLEDGEMENT

DEDICATION ~

~iv

LIST OF STATUTES v

LIST OF CASES ~vi

TABLE OF CONTENTS .~..viii

ABSTRACT ~xi

CHAPTER ~1

1.0 Introduction~1

1.1 Back ground to the study ...................~...1

1.3 Rationale of the study~4

1.4 Scope of the study~5

1.5 Research Objectives 5

1.6 Research Question 5

1.7 Research Methodology 6

1.8 Clarification of key Terms 6

1.9 Review of Literature; 9

1.9.1 Introduction 9

VI I

CHAPTER TWO 24

2.0 The Legal and Regulatory Framework ..................................24

2.3 The 1995 Constitution of Uganda,.................................................. 29

2.4 The Income Tax Act Cap 340~34

2.5 Public Finance Bill, 2012~35

2.6 The Value Added Tax Act Cap 349................................................. 37

2.7 The Petroleum (Exploration, Development and Production) Act, 201338

2.8 Access to Information Act 2005 40

2.9 The Local Government Act, Cap 287 40

2.9 A COMPARISON BETWEEN UGANDA AND GHANA 47

CHAPTERTHREE~~,m~. 50

3.0 Transparency and public accountability 50

3.1 Mandatory Public Disclosure 51

3.2 Transparency and National Consensus 53

3.3 Revenue Transparency 54

3.4 Contract Transparency/Freedom of Information 55

CHAPTER ~59

4.0 Taxation and Oil Revenue Management 59

4.1 The case of URA VS Heritage Oil and Gas Limited 63

ix

4.2 The Finding of The Researcher on the Legal Regime for Oil Revenue

Management In Uganda ..................~..67

CHAPTER FIVE ~ 70

5.0 CONCLUSION AND RECOMMENDATIONS ........~.70

5.1 Conclusion; 70

5.2 Recommendation; 71

5.2.1 Establishment of the Petroleum Fund 71

5.2.2 Accounting and Auditing of Oil and Gas Revenues 72

Bibliography 77