Namibia proposes new tax court to enhance fairness and transparency in tax administration

Namibia's government has introduced amendments to the Income Tax Act to establish an independent tax court, aiming to improve fairness, transparency, and public confidence in the country's tax administration system. Finance minister Erica Shafudah presented the proposed changes in the National Assembly, stating the bill will create a dedicated court for income tax and value-added tax appeals. This initiative follows a 2021 High Court ruling that found provisions of the former special tax court unconstitutional, specifically regarding the minister's powers in administering tax legislation and appointing court members, which compromised the principle of a fair trial. The new tax court will operate within the High Court structure as an independent judicial institution, delivering objective and impartial decisions. The bill also clarifies the distinct roles of the minister and the commissioner in tax law administration and reaffirms the hierarchy where tax disputes are first heard by a tribunal, with appeals then directed to the new tax court. The administration of the tax court will fall under the High Court, with the judge president designating judges and staff. Pending appeals from the defunct special tax court will be transferred to the new court upon the bill's approval. Shafudah urged parliamentary support, emphasizing it as a crucial step towards a fair and constitutionally compliant tax dispute resolution system.