Uganda’s Growing Tax Appeals Tribunal Backlog Raises Concerns Over Business Liquidity & Dispute Resolution
Over Shs1.5 trillion in disputed tax revenue remains tied up as increasing case volumes continue to strain Uganda’s Tax Appeals Tribunal.
Uganda’s Tax Appeals Tribunal (TAT) is facing increasing pressure following a significant rise in unresolved tax disputes, with more than 500 tax cases involving approximately Shs1.5 trillion reportedly pending resolution as of early 2026.
The growing backlog has raised concerns among businesses, legal analysts, and policymakers regarding the impact of prolonged tax disputes on business liquidity, investment activity, and broader economic performance.
Rising Case Backlog
According to recent reports, the number of pending tax disputes has increased significantly over the past few years, rising from approximately 169 cases in the 2022/2023 financial year to nearly 476 cases by June 2025.
The increasing caseload has placed substantial pressure on the Tribunal’s operational capacity, leading to longer dispute resolution timelines and growing uncertainty for affected taxpayers.
Shs1.5 Trillion Locked in Disputes
The unresolved disputes collectively involve approximately Shs1.5 trillion in contested tax assessments, creating a significant strain on both businesses and government revenue administration.
Legal and business analysts have noted that prolonged disputes effectively lock substantial amounts of working capital within the dispute resolution process, limiting business expansion, investment activity, and operational flexibility.
Reports further indicate that a relatively small number of high-value disputes account for the majority of the contested amounts, with approximately 41 cases exceeding Shs5 billion each representing nearly 75% of the total disputed value.
Operational & Funding Challenges
The Auditor General’s report has highlighted concerns regarding the Tribunal’s operational funding and capacity constraints. Despite increasing caseloads and expansion of Tribunal membership from five to nine members, the institution’s budget reportedly remained largely unchanged at approximately UGX 7.7 billion.
These constraints have contributed to slower case processing timelines, with some disputes reportedly taking an average of approximately 10 months to resolve.
Efforts to Improve Performance
Despite the operational pressures, the Tribunal has continued efforts to improve dispute resolution performance. Reports indicate that approximately 146 cases were resolved during the first half of the 2025/2026 financial year, unlocking an estimated UGX 203 billion in disputed funds.
Stakeholders have also increasingly encouraged the use of Alternative Dispute Resolution (ADR) mechanisms to reduce pressure on the Tribunal and accelerate settlement of tax disputes.
Business Implications
The growing backlog highlights the importance of proactive tax compliance, effective dispute management, and early engagement with tax authorities.
Businesses should continuously review their tax risk management frameworks, dispute resolution strategies, documentation processes, and compliance controls to minimize exposure to prolonged tax disputes and operational disruptions.
Organizations involved in ongoing disputes may also consider appropriate ADR mechanisms where available to facilitate faster resolution and reduce financial uncertainty.
“Efficient tax dispute resolution systems remain essential for strengthening business confidence, protecting liquidity, and supporting sustainable economic growth.”