Wakilii

Iliso Consulting (PTY) Limited and 2 Others v Iliso Consulting (PTY) Limited t a Nako Incorporated in South Africa and 2 Others (Civil Suit No. 1031 of 2019)

High Court · [2021] UGCOMMC 12 Matter Referred to Tax Appeals Tribunal AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Ruling on preliminary objection raised by 2nd defendant challenging jurisdiction of the Commercial Court to hear tax dispute
Decision
Suit referred to Tax Appeals Tribunal for adjudication of tax dispute; residual issues in company law and contract law to be referred back to High Court where necessary after tribunal determination

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that although the High Court has unlimited original jurisdiction under Article 139(1) of the Constitution, where Parliament has established a specialized tribunal with particular jurisdiction—here the Tax Appeals Tribunal for tax disputes—the court should not usurp that tribunal's functions. Where a suit is primarily grounded on a tax dispute, it should be referred to the Tax Appeals Tribunal in the first instance, with residual issues in company or contract law referred back to the High Court if necessary after the tribunal's determination.

Outcome

Suit referred to Tax Appeals Tribunal for adjudication of tax dispute; residual issues in company law and contract law to be referred back to High Court where necessary after tribunal determination

Facts

The 1st plaintiff was assessed tax of UGX 1,469,083,334 by the 2nd defendant Uganda Revenue Authority, to which the 1st plaintiff objected. The plaintiffs instituted Civil Suit No. 1031 of 2019 in the Commercial Court against three defendants including URA. At scheduling on 15 December 2020, the 2nd defendant indicated its intention to raise a preliminary objection on jurisdiction. On 11 January 2021, counsel for the 2nd defendant argued that the suit was prematurely instituted because the dispute was a tax dispute that must be heard first by the Tax Appeals Tribunal established under Article 152(3) of the Constitution and the Tax Appeals Tribunal Act Cap 345. The plaintiffs opposed, arguing that the case involved significant questions of company law and contract law arising from alleged misrepresentation leading to erroneous tax assessment, giving the High Court exclusive original jurisdiction under Article 139.

Issues

  1. Whether the Commercial Court has original jurisdiction to hear a tax dispute or whether such dispute must first be heard by the Tax Appeals Tribunal established under Article 152(3) of the Constitution and the Tax Appeals Tribunal Act Cap 345.

Orders

  • Suit referred to the Tax Appeals Tribunal for handling and disposal.
  • Any costs so far incurred by any party in respect of this suit shall be in the cause.

Rules and key headnotes

Administrative Law — Jurisdiction of Specialized Tribunals — Tax Appeals Tribunal — Original Jurisdiction
Where Parliament has established a specialized tribunal for a particular category of disputes, courts should not allow another process to be used to bypass that tribunal even though the High Court retains unlimited original jurisdiction under Article 139(1) of the Constitution.
Tax Law — Tax Disputes — Jurisdiction — Tax Appeals Tribunal versus High Court
Although the Tax Appeals Tribunal was not given exclusive jurisdiction over tax matters, where a suit is primarily grounded on a tax dispute, it should be referred to the Tax Appeals Tribunal in the first instance pursuant to Article 152(3) of the Constitution and section 14(1) of the Tax Appeals Tribunal Act Cap 345, with the High Court exercising appellate jurisdiction under section 27 of that Act.
Civil Procedure — Jurisdiction — Preliminary Objections — Referral to Specialized Tribunal
Where a matter touches other causes of action in contract law and company law but is primarily grounded on a tax dispute, the court may refer the case to the Tax Appeals Tribunal for adjudication over the tax dispute, with residual issues to be referred back to the High Court where necessary after the tribunal's determination.

Legislation cited (6)

Cases cited (2)

  • Kawuki Mathias v Commissioner General URA (Miscellaneous Cause No. 14 of 2014)
  • Uganda Revenue Authority v Rabbo Enterprises (U) Ltd (Civil Appeal No. 12 of 2004)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Iliso Consulting (PTY) Limited and 2 Others v Iliso Consulting (PTY) Limited t a Nako Incorporated in South Africa and 2 Others (Civil Suit No. 1031 of 2019) [2021] UGCommC 12 (15
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.