Africa-Press – Uganda. Commercial lawyers are raising concerns over an escalating backlog of tax disputes, now amounting to 330 billion shillings, as highlighted in the Auditor General’s report for the year ending December 31, 2024.
The Tax Appeals Tribunal, responsible for resolving these disputes, is under increasing pressure, struggling to clear cases that have been piling up for years.
Commercial lawyer Denis Kakembo attributes the crisis to the Uganda Revenue Authority’s (URA) constantly shifting revenue targets, which he says create undue pressure on taxpayers.
“When the target for URA is increased, especially domestic targets, pressure builds up, and in the end, the taxman imposes excessive levies. This forces many businesses into costly legal battles,” Kakembo said.
The Auditor General’s report, which examined cases filed between June 2022 and June 2024, revealed that out of 368 cases worth Shs404 billion before the tribunal, only 19 were resolved, while 91 were settled by consent.
Six cases worth 3.5 billion shillings were returned to URA, 40 cases worth Shs17.1 billion were withdrawn, and 212 cases worth 331.9 billion shillings remained unresolved as of June 2024.
Experts warn that unless reforms are made to stabilize URA’s tax-setting policies and improve the dispute resolution process, the backlog will continue to grow, discouraging investment and stalling economic growth.
Kakembo argues that a more predictable and transparent tax regime is essential to easing the burden on businesses and reducing litigation.
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