Why the Tax Appeals Tribunal is your legal lifeline when URA knocks too loud

_________________

By Joshua Kato, CA

In the tax world, no business, big or small, is immune to the dreaded tax dispute. it often begins with a letter, maybe a tax assessment, a demand notice, or a penalty. Your business is doing well, but then URA comes knocking, and suddenly, your cash flow, compliance reputation, or even operational survival is at risk. Do you pay up even if you disagree? Do you argue your case in futility? Or do you fight smart?

Welcome to the Tax Appeals Tribunal (TAT), Uganda’s dedicated and independent legal lifeline for taxpayers caught in a tussle with URA.

Taxation is the lifeblood of any government, but for many taxpayers in Uganda, it can also feel like a legal minefield, complex, intimidating, and occasionally overreaching. And while URA has made strides in digitalisation and customer service, the reality remains that taxpayers need protection and recourse when things go wrong.

That’s where TAT steps in, not as a shield from taxes, but as a guardian of fairness, ensuring that taxpayers have a real voice, an independent avenue to challenge URA’s decisions, and a fair hearing in matters that affect their livelihoods and businesses.

TAT was established in 1997 and operational since 1999, the Tax Appeals Tribunal was born out of a constitutional obligation, enshrined in Article 152(3) of the 1995 Constitution to create an independent mechanism through which tax disputes could be resolved outside the URA framework. Its mission is simply to ensure that no taxpayer is left helpless or unheard in the face of a tax assessment or penalty they believe to be incorrect, unlawful, or unfair.

The primary duty of the Tax Appeals Tribunal is to adjudicate disputes between taxpayers and URA. These disputes often arise from: - Disputed tax assessments (for Income Tax, VAT, PAYE, Excise Duty, WHT, Customs, etc.), penalties and interest disagreements, objections to URA’s audit findings, interpretation of tax laws or procedures, refusal by URA to refund overpaid tax, transfer pricing or tax classification disputes. TAT therefore hears appeals from taxpayers who are dissatisfied with URA's decisions following an objection under the Tax Procedures Code Act. Are you a taxpayer who has gone through the objection process and still feels aggrieved, TAT is your next stop!

It is important to note that TAT is not a court of first instance in the strictest sense. It is an appellate body of first resort for tax disputes. This means you do not go to TAT as your first move when you receive an assessment; instead, you first file an objection with URA. If URA rejects your objection or fails to respond within 90 days, you can appeal to TAT. So, while it's not your first port of call, it is your first opportunity to have your dispute heard by an independent authority outside URA.

The Tax Appeals Tribunal is chaired by a legally qualified professional, appointed by the Minister of Finance, and supported by other members with expertise in tax, finance, law, and public administration.

Currently, the Chairperson is Ms. Crystal Kabajwara, a distinguished tax practitioner with over 17 years of experience. Her leadership ensures professionalism, impartiality, and legal soundness.

I have interacted with a number of clients who have asked about representation and whether one can defend themselves in TAT. Yes, you can appear in person. TAT allows both self-representation and legal representation. Taxpayers may represent themselves, send an accountant, a tax advisor, or hire a lawyer.

This makes the tribunal more accessible to small business owners and individuals who may not afford expensive litigation. However, due to the complexity of tax laws, it is often advisable to seek expert help, especially in high-stakes cases involving large assessments, transfer pricing, or complex VAT issues.

The Tax Appeals Tribunal plays a critical role in ensuring tax justice, particularly in a context where many businesses feel overwhelmed by URA’s tax enforcement strategies. Here's how TAT impacts the business community:

Restores Balance of Power - It allows you to challenge URA’s decisions on equal footing. You don’t just have to “comply now and complain later.” You can fight back, legally.

Saves You Money - If you win your appeal, URA may be ordered to cancel the assessment, reduce the tax payable, or refund the amount with interest.

Improves Tax Administration - TAT decisions create legal precedents, which help clarify grey areas in tax law. URA is also held to a higher standard of transparency and fairness.

Encourages Voluntary Compliance - Knowing there’s a neutral platform where you can be heard encourages more taxpayers to participate in the formal economy without fear of arbitrary tax enforcement.

Timely Resolution - Unlike the civil court system which is bogged down by delays, TAT is required by law to resolve cases in a reasonable period. Most cases are heard within 6–12 months, depending on complexity.

The process of resolving a tax dispute through the Tax Appeals Tribunal (TAT) begins when URA issues a tax assessment or demand. A taxpayer who disagrees with the assessment must file an objection within 45 days, in accordance with Section 25 of the Tax Procedures Code Act. URA is then required to respond within 90 days.

If the taxpayer is dissatisfied with the response, or if URA fails to respond within that period, the taxpayer may file an appeal with TAT within 30 days. The Tribunal then schedules a hearing where both parties present their evidence, arguments, and witnesses. After considering the matter, TAT issues a binding decision, which can only be challenged further by appealing to the High Court of Uganda on a point of law.

Before you walk into the Tax Appeals Tribunal, it’s important to leave behind a few common but costly misunderstandings. First, TAT is not a department of URA. It is an independent, impartial tribunal created by law to keep URA in check, not to protect it. Second, filing an appeal at TAT does not automatically pause URA’s enforcement actions. Unless you specifically apply for and are granted a stay of execution, URA can still move to recover the assessed taxes even while your case is pending.

Finally, don’t let fear stop you, you are not required to pay the full disputed tax amount before filing an appeal. As long as you’ve followed the correct procedure and deadlines, your right to be heard stands. These clarifications could mean the difference between being cornered, or courageously and legally standing your ground.

The writer is a chartered Accountant, consultant and an international tax expert.