URA closes its accounts in Stanbic Bank amid raging tax dispute

The Uganda Revenue Authority (URA) has decided to close all its accounts in Stanbic Bank Uganda and move them to other commercial banks.

The decision is a major break in a long banking relationship between the tax body and one of Uganda’s biggest banks.

In a June 4, 2026 letter to Stanbic Bank Uganda chief executive Mumba Kalifungwa, and signed by Commissioner General John Musinguzi, URA said the bank had enjoyed both financial and strategic benefits from handling its accounts, but cited concerns around tax compliance and transparency.

For years, Stanbic has helped URA collect taxes from individuals and companies through its banking channels. 

In 2024, Stanbic said it helped URA collect more than Shs10 trillion, up from Shs8 trillion in 2023.

CEO Magazine reports that by June 2025, the bank had already handled Shs5.8 trillion in tax payments, compared to Shs4.9 trillion in the same period the previous year.

But URA now says the benefits Stanbic enjoyed have not been matched by what it called “tax compliance and transparency.”

“URA is in principle required to bank with institutions that demonstrate total tax compliance,” the letter states.

URA said it reviewed the relationship based on governance, compliance and risk concerns before deciding to move its accounts.

The decision comes as URA and Stanbic fight over a Shs117.8 billion tax assessment before the Tax Appeals Tribunal.

The dispute is about transfer pricing. In simple terms, URA is questioning whether Stanbic Uganda paid the right amount of tax after making payments to other companies within the wider Standard Bank Group.

URA believes some of those internal group charges may have reduced Stanbic Uganda’s taxable income. Stanbic denies wrongdoing.

The tax body has questioned some management fees, franchise fees, technology costs and trade processing charges billed to the Ugandan bank by group entities.

URA’s concern is that some costs may have been too high, duplicated, or charged to Uganda when they should have belonged to the wider group.

Stanbic says the payments were legitimate and followed accepted international rules. The bank has also said the dispute is part of a normal tax review process.

Stanbic officials have previously said the bank remains tax compliant and has paid hundreds of billions of shillings in taxes.

The account closure will also hit a valuable business relationship. URA accounts bring large tax-payment flows, visibility and corporate clients who use Stanbic to pay taxes.

URA said the current collection agreement, which expires on June 30, 2026, will only be renewed for six months to allow a smooth handover.

The tax body has asked Stanbic to submit a transition and account-closure plan within 14 days.

URA said the plan should show how the transfer will happen without disrupting taxpayers or URA operations.

The authority also said moving the accounts will not stop the ongoing tax dispute. It said all claims, audits, assessments and proceedings will continue through the proper legal and administrative channels.