Tax Appeals Tribunal case backlog locks up sh1.3 trillion

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Over sh1.3 trillion is stuck in litigation at the Tax Appeals Tribunal (TAT), a quasi-judicial body established in 1997 to provide taxpayers with accessible, efficient and independent arbitration for tax disputes with the Uganda Revenue Authority (URA).

This is according to the annual performance report presented by the tribunal to finance state minister Henry Musasizi on September 2, 2025. 

The case load at the tribunal now stands at 492 cases with an average age of 11 months. A tax case is considered backlog if it stays in the system for more than nine months.

Each tax dispute represents money that should either be refunded to the taxpayer or paid to URA as tax, and thus timely resolution of the disputes releases the money back into the economy.

The report indicates that while the case backlog has reduced to 47% from 55% compared to the previous years, the cases filed with the tribunal have grown by 127%, explaining the perennial case backlog at the tribunal.

Presenting the report to the minister, Crystal Kabajwara, the chairperson of the tribunal, blamed the perennial case backlog on the increased number of cases lodged with the tribunal that is not matched by resources.

“Hon. Minister, we currently have approximately 500 cases with a total tax in dispute of sh1.3 trillion. While our caseload has grown, this has not been matched by a corresponding investment in people and systems due to a lack of funding. Therefore, we need funding to deal with issues such as staff shortages,” Kabajwara said.

Kabajwara noted that the tribunal is currently operating a funding deficit of about sh1.3 billion arising from an increase in the number of members that do not correspond with the budgetary allocation.

Kabajwara revealed that in the last financial year, the tribunal received 410 new applications worth sh565 billion, which equates to an average of 34 new applications per month.

During the year under review, Kabajwara said sh506 billion was released back into the economy, the highest in the TAT’s history.

The report indicates that URA won 56% of the 266 cases that have been resolved by the tribunal.

The report further indicates that 105 cases were resolved through consent settlements with URA vacating 70% of the assessed tax.

In a bid to tackle the case backlog at the tribunal, Kabajwara called for legal reform so that disputes of sh50m and below can be handled by a single member.

“75% of disputes before the tribunal are less than 50 million. We need reform to ensure that some of the disputes can be settled by a single-member panel,” Kabajwara said.

Kabajwara said if the tribunal is availed the required resources, the sky would not be the limit.

As part of the interventions, Kabajwara said the tribunal is working on the digital case management system for purposes of tracking the cases from initial filing until final disposal.

Kabakumba Matsiko, a member of the tribunal, underscored the need for capacity building, saying tax is very dynamic.

“If judges receive capacity building, what about the members of the tribunal?” Kabakumba said while convincing the ministry to allocate money for capacity building to the tribunal.

Musasizi commended the tribunal for the work done. Musasizi, however, tasked the tribunal to urgently develop a strategic plan, saying it is crucial for any progressive organisation.

The tribunal is operating without a strategic plan, which Kabakumba said was delayed because of the rationalisation of government ministries, departments and agencies.

“I thank you because you have managed to handle some cases, but the net effect is still the same. You need to develop a strategic plan for improved performance,” Musasizi said.

Moses Kaggwa urged the members of the tribunal to give priority to cases with a lot of money to unlock the economy.