Respicius Mwijage
Member
- Dec 18, 2023
- 38
- 18
“A CALL TO ACTION FOR TAX DISPUTE RESOLUTION”
President Samia Suluhu Hassan has been steadfast in her commitment to economic growth and stability for Tanzania. During a recent event in Zanzibar, where new government appointees were sworn in, she emphasized the importance of enhancing government revenue collection through taxation. Her vision is clear: reduce dependency on foreign loans and promote self-sustained economic stability. As a seasoned tax lawyer with extensive experience in tax dispute resolution, I fully support her call to action.
The President's call for increased seriousness in tax collection by the Tanzania Revenue Authority (TRA) is both timely and crucial. Tax disputes play a significant role in the tax collection process, often tying up substantial amounts of government revenue. Reports from the Controller and Auditor General (CAG) have consistently highlighted the large sums of money entangled in disputes between the TRA and taxpayers. These disputes range from objections to assessments by the Commissioner General and complaints to the Tax Ombudsman to appeals before the Tax Revenue Appeals Board (TRAB), the Tax Revenue Appeals Tribunal (TRAT), and the Court of Appeal (CoA).
Enhancing Professionalism and Timeliness in Objection Proceedings
The Commissioner General (CG) must ensure that tax objections are handled professionally and promptly, within the confines of the law. Clear mechanisms should be established within TRA to guarantee that aggrieved taxpayers are fully heard during objection proceedings. Importantly, tax administrators involved in the contested decisions should not participate in the objection review process, but instead should be summoned to explain their assessments before an independent committee.
The Tax Administration Act mandates the CG to judiciously determine objections and waiver applications for tax deposits. These decisions should be based on the merits of the arguments presented by the taxpayer, rather than on the pressure to meet tax collection targets, which can lead to bias and partiality. Furthermore, the objection stage should emphasize negotiation and amicable settlement, as both taxpayers and TRA are partners in government revenue collection.
Timely decisions by Tax Ombudsman
The Tax Ombudsman, a newly established body responsible for addressing taxpayers' complaints regarding the administrative actions of tax authorities, plays a crucial role in resolving these complaints promptly and without unnecessary delays. Additionally, the Tax Ombudsman has the duty to educate the public on its functions and the overall processes of tax administration.
Strengthening the Tax Appeals Bodies
TRAB and TRAT, under the Tax Revenue Appeals Act Cap 408, have the original and appellate jurisdiction to resolve all tax-related civil matters. These bodies must comprise impartial and experienced members in law, finance, taxation, and auditing. Their decisions should be well-articulated, grounded in law, and serve as guiding precedents for taxpayers and TRA alike. This will foster a predictable and transparent tax administration system.
Timely determination of tax appeals is essential. It enables taxpayers to resolve their tax affairs promptly, allows the tax authority to conclude matters, and ensures that the government can realize its lawful revenue in a timely manner. For the public, clear and timely interpretations of tax laws enhance understanding and compliance.
The Role of the Court of Appeal
The Court of Appeal, although burdened with numerous appeals, plays a crucial role in tax dispute resolution as the final appellate body under the Tax Revenue Appeals Act. This court is tasked with interpreting tax statutes and resolving disputes between taxpayers and the tax authority. Clear and precise interpretations of tax laws are vital for developing robust tax jurisprudence and promoting a sustainable and predictable tax administration.
Given the complexity of tax law, the Court of Appeal should not hesitate to seek opinions from tax experts when necessary. Utilizing amicus curiae, or "friends of the court," can provide valuable insights for fair and accurate interpretations of tax statutes.
Responsibilities of Taxpayers and Professionals
Taxpayers and tax professionals also have a critical role to play. They must ensure that taxes are paid lawfully and on time. Tax evasion should be strongly discouraged, and taxpayers should seek proper advice when considering objections or appeals. Promoting amicable resolutions or mediation in tax disputes, rather than adversarial approaches, can build confidence among local and foreign investors, recognizing that tax disputes are inevitable in any jurisdiction.
Conclusion
President Samia’s call to action should resonate not only with the tax authority but with all stakeholders, including taxpayers, tax practitioners, and citizens. By fostering a collaborative and transparent tax dispute resolution process, we can build a robust and self-reliant national economy. Supporting President Samia’s vision means embracing our collective responsibility to enhance our tax system for the benefit of all Tanzanians.
The President's call for increased seriousness in tax collection by the Tanzania Revenue Authority (TRA) is both timely and crucial. Tax disputes play a significant role in the tax collection process, often tying up substantial amounts of government revenue. Reports from the Controller and Auditor General (CAG) have consistently highlighted the large sums of money entangled in disputes between the TRA and taxpayers. These disputes range from objections to assessments by the Commissioner General and complaints to the Tax Ombudsman to appeals before the Tax Revenue Appeals Board (TRAB), the Tax Revenue Appeals Tribunal (TRAT), and the Court of Appeal (CoA).
Enhancing Professionalism and Timeliness in Objection Proceedings
The Commissioner General (CG) must ensure that tax objections are handled professionally and promptly, within the confines of the law. Clear mechanisms should be established within TRA to guarantee that aggrieved taxpayers are fully heard during objection proceedings. Importantly, tax administrators involved in the contested decisions should not participate in the objection review process, but instead should be summoned to explain their assessments before an independent committee.
The Tax Administration Act mandates the CG to judiciously determine objections and waiver applications for tax deposits. These decisions should be based on the merits of the arguments presented by the taxpayer, rather than on the pressure to meet tax collection targets, which can lead to bias and partiality. Furthermore, the objection stage should emphasize negotiation and amicable settlement, as both taxpayers and TRA are partners in government revenue collection.
Timely decisions by Tax Ombudsman
The Tax Ombudsman, a newly established body responsible for addressing taxpayers' complaints regarding the administrative actions of tax authorities, plays a crucial role in resolving these complaints promptly and without unnecessary delays. Additionally, the Tax Ombudsman has the duty to educate the public on its functions and the overall processes of tax administration.
Strengthening the Tax Appeals Bodies
TRAB and TRAT, under the Tax Revenue Appeals Act Cap 408, have the original and appellate jurisdiction to resolve all tax-related civil matters. These bodies must comprise impartial and experienced members in law, finance, taxation, and auditing. Their decisions should be well-articulated, grounded in law, and serve as guiding precedents for taxpayers and TRA alike. This will foster a predictable and transparent tax administration system.
Timely determination of tax appeals is essential. It enables taxpayers to resolve their tax affairs promptly, allows the tax authority to conclude matters, and ensures that the government can realize its lawful revenue in a timely manner. For the public, clear and timely interpretations of tax laws enhance understanding and compliance.
The Role of the Court of Appeal
The Court of Appeal, although burdened with numerous appeals, plays a crucial role in tax dispute resolution as the final appellate body under the Tax Revenue Appeals Act. This court is tasked with interpreting tax statutes and resolving disputes between taxpayers and the tax authority. Clear and precise interpretations of tax laws are vital for developing robust tax jurisprudence and promoting a sustainable and predictable tax administration.
Given the complexity of tax law, the Court of Appeal should not hesitate to seek opinions from tax experts when necessary. Utilizing amicus curiae, or "friends of the court," can provide valuable insights for fair and accurate interpretations of tax statutes.
Responsibilities of Taxpayers and Professionals
Taxpayers and tax professionals also have a critical role to play. They must ensure that taxes are paid lawfully and on time. Tax evasion should be strongly discouraged, and taxpayers should seek proper advice when considering objections or appeals. Promoting amicable resolutions or mediation in tax disputes, rather than adversarial approaches, can build confidence among local and foreign investors, recognizing that tax disputes are inevitable in any jurisdiction.
Conclusion
President Samia’s call to action should resonate not only with the tax authority but with all stakeholders, including taxpayers, tax practitioners, and citizens. By fostering a collaborative and transparent tax dispute resolution process, we can build a robust and self-reliant national economy. Supporting President Samia’s vision means embracing our collective responsibility to enhance our tax system for the benefit of all Tanzanians.