The Auditor General, Edward Akol, has revealed concerning details about the performance of the Tax Appeals Tribunal in 2024, highlighting severe delays in handling cases and issues with the qualifications of some tribunal members.
According to the Auditor General’s report, a staggering 558 cases, valued at Shs1.277 trillion, were filed before the Tax Appeals Tribunal in 2024. However, the tribunal only managed to make rulings on 30 cases worth Shs45.35 billion, leaving cases worth Shs1.058 trillion pending.
The audit also uncovered that two out of the four new members appointed to the tribunal in May 2023 lacked the necessary qualifications in Taxation, Finance, Accounting, or Law, the required expertise to serve on the Tribunal.
The Auditor General stated that these individuals did not meet the qualifications stipulated by the relevant legislation governing the Tribunal, which specifically calls for members to have a background in these fields.
In his analysis, Akol noted, “I analysed the trend of cases under the Tax Appeals Tribunal and observed that whereas the tax appeal cases are increasing, the cases being handled have remained low. I noted that two of the four additional Tribunal members appointed in May 2023 did not meet the required qualifications under the Act, as their areas of speciality were not in line with taxation, finance, accounting or law as required.”
The Management of the Tax Appeals Tribunal attributed the poor performance to a lack of sufficient qualified members and an aggressive tax assessment regime. Currently, there are only 7 Tribunal members serving on the panel, which has significantly strained the Tribunal’s capacity to handle the growing volume of cases.
In another significant disclosure, the Auditor General revealed that Ugandan taxpayers were burdened with the payment of Shs376,778,118 to cover unpaid utilities and maintenance expenses after the Canadian Government declared Uganda’s High Commissioner persona non grata last year.
Despite the former staff being recalled back to Uganda, they refused to leave the High Commission for more than 30 days, contrary to the requirements of Paragraph H-b (8) of the Public Service Standing Orders, 2021.
The unpaid utilities and maintenance expenses, amounting to CAD149,075, were eventually settled by the High Commission. The tenancy agreement for the High Commission still had 17 months remaining when the staff was recalled. The landlord demanded full payment for the remaining lease period in line with the terms of the tenancy agreement, further compounding the financial burden.
The Auditor General’s revelations underscore critical governance and administrative challenges within key state institutions, with implications for public finances and management of taxpayer resources.
The findings call for urgent attention to the qualifications of individuals serving in key roles, as well as a thorough review of procedures and operations within the Tax Appeals Tribunal and the Uganda High Commission in Canada.
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