The study analyzed how court actions particularly with respect to the operation of the Tax Appeals Tribunal (TAT), affect domestic revenue mobilisation in Uganda. Based on time series data combined with stakeholder analysis, the study aimed to analyze the performance of TAT in settling tax disputes, examine the source of tax disputes, identify legal and non-legal factors affecting dispute resolution, and propose policy options for improving the operations of TAT. The results revealed that tax disputes are resolved slowly, resulting into a large back log of outstanding disputes, very few cases are resolved by the High Court due to the back log of cases appearing in the this Court. Moreover, tax disputes are commonly settled through mutual consent or withdrawn by taxpayers due to lengthy legal bureaucracy. Disputes generally arise out of tax exemptions and excessive or aggressive assessments by the Uganda Revenue Authority. The study recommends introduction of mediation as a dispute resolution mechanism, limiting the frequency of amendments of tax laws as this contributes to undue complexity and expanding the jurisdiction of the tribunal to allow the awarding of damages to injured parties.