The government has tabled legislation to establish an independent Tax Court within the High Court system, replacing the defunct Special Tax Court and restructuring the country’s tax dispute resolution framework following a 2021 High Court ruling that declared key provisions of the existing system unconstitutional.
The proposed Income Tax Amendment Bill of 2026 seeks to create a dedicated Tax Court to hear income tax and value-added tax (VAT) appeals while clarifying the respective roles of the minister of finance and the commissioner of the Namibia Revenue Agency (NamRA) in administering the Income Tax Act.
The amendments respond to a 2021 High Court judgment that found the provisions governing the constitution of the Special Tax Court unconstitutional because the minister of finance had both the authority to establish the court and appoint its members while also administering the Income Tax Act.
The court ruled that this arrangement compromised the constitutional right to a fair trial under Article 12 of the Namibian Constitution. The High Court ruling meant that the Special Tax Court ceased to exist as an institution under the law.
The court will hear appeals relating to income tax, VAT and other tax disputes referred to it, while also operating under the procedural rules of the High Court.
Observer Money asked one of the country’s leading tax experts, Gerda Brand, who is the director of Africa Tax & Legal Taxation Services at Deloitte & Touche Namibia about the implications of the proposed changes.
Observer Money (OM): What is your opinion on the proposed amendments?
Gerda Brand (GB): The proposed amendment is most welcomed because taxpayers have not had judicial avenue to resolve tax disputes with the Namibia Revenue Agency (NamRA) for more than five years. Such an avenue is very important for taxpayers to know that they have a fair and independent venue to challenge assessments and audit outcomes, and it is a critical legal check on the administrative powers of a tax authority.
OM: Do you anticipate major changes as a result of the amendments?
GB: Over time, we anticipate the establishment of the Tax Court to result in behavioural changes both from taxpayers and NamRA. Tax courts generally transform how taxpayers and revenue authorities behave as they encourage fairer compliance, enforces legal rights and increase compliance confidence.
OM: The Tax Court will officially become part of the High Court system in Namibia; do you think this will improve the previous arrangement?
GB: Yes, I believe it will because the Tax Court will now be an independence judicial court.
OM: Do you think that the establishment of the Tax Court will strengthen public trust in the tax laws?
GB: Yes, I do.
OM: In your opinion, what is the main cause of tax disputes?
GB: We have seen an increase in tax audits conducted by NamRA and resultant tax assessments being issued. The increased audit activity, in itself, results in an increased number of tax disputes. However, we are also seeing an increase in disputes against the administrative processes that are followed by NamRA.
