Law governing tax Objections and Appeals
Objections and Appeals is governed by Tax Administration Act no. 438 R.E 2023 and Tax Revenue Appeals Act, Cap.408 R.E 2023 as revised from time to time.
Introduction to Objection and Appeals
Tanzanian tax laws allow any person who feels aggrieved to request a formal change to an official decision regarding tax assessment made by the Commissioner General. A taxpayer who feels that the Commissioner General misapplied the law, came to an incorrect factual finding, abused his powers, was biased, considered evidence which he should not have considered or failed to consider evidence that he should have considered in making an assessment, may object against such an assessment.
Assessment of Tax
Is an assessment of tax as determined or ascertained in each respective tax law.
Disputed Assessment
Is an assessment made by the Commissioner General and the taxpayer disagrees with such tax findings.
Tax not in dispute
Means the amount that ought to be charged where the assessments or a tax decision is amended in accordance with objections and the whole of duty or any tax assessed on import.
Objection Procedure
A person aggrieved by a tax decision made by the Commissioner General may file a Notice of Objection within thirty (30) days from the date of service of the decision. The objection must be in writing, stating the grounds and supported by relevant documents or information.
The objection shall not be admitted unless the taxpayer pays the tax not in dispute or one-third of the assessed tax, whichever is greater. For customs duty, the full duty or tax assessed on imports must be paid upon filing the objection.
The taxpayer may apply for waiver or reduction within fifteen (15) days, where justified. An objection may be admitted upon compliance with payment requirements.
A taxpayer with reasonable grounds may apply for extension of time within seven (7) days before expiry, and the extension shall not exceed thirty (30) days.
Where and to Whom Should an Objection Be Lodged?
An objection should be lodged with the appropriate tax authority as follows:
Regional Office – Where the taxpayer is registered.
Commissioner for Customs and Excise – For matters relating to customs and excise assessments.
Commissioner for Large Taxpayers – For taxpayers under the Large Taxpayers Department.
- Commissioner for Domestic Revenue – For matters relating to domestic tax assessments and administration.
Appellant machinery
Where the objector fails to make submission within the time prescribed, the notice issued shall be treated as an objection decision and, the objector shall have the right to appeal to the Board in accordance with the Tax Revenue Appeals Act.
Where the Commissioner General had issued a notice, the notice shall be treated as an objection decision and the objector shall have the right to appeal against such notice to the Board in accordance with the Tax Revenue Appeals Act.
Basically there are three appellate machines where a taxpayer may appeal in case he disagrees with Commissioner General’s decision.
The law provides that, any person who is aggrieved by the final determination of the assessment of tax by Commissioner General may appeal to the Board. The Board shall accept the objection under the following conditions: -
1) A notice of appeal is served upon the Commissioner General within thirty days following the date on which a notice of final determination of assessment of tax is served on the appellant;
2) The appeal is lodged with the Board within forty-five days following the date on which the notice of final determination of assessment of tax is served on the appellant; and
3) The notice should give all details relating to the tax assessment and further correspondences made between the Commissioner General and the taxpayer.
Appeal to the Tribunal.
Any part who is aggrieved by the decision of the Board may appeal against the decision to the Tribunal. The appeals to the Tribunal shall be under the following conditions: -
The appellant shall serve the opposite party notice of intention to appeal within fifteen days following the date on which the decision of the board was made and the appeal should be made within thirty days from the date of the decision of the board.
The Board or Tribunal, may extend the limit of time set by the law if it is satisfied that the failure by a party to give notice of appeal, lodge an appeal or to effect service to the opposite party was occasioned by the following reason; absence from the United Republic, sickness or other reasonable cause, subject to such terms and conditions as to costs as it may consider just and appropriate.
Appeal to the Court of Appeal
Any person who is aggrieved by the decision of the tribunal may prefer an appeal to the Court of appeal and such appeal to the Court of Appeal shall lie on matters involving questions of law only and the provisions of the Appellate Jurisdiction Act and the court of appeal rules made thereunder shall apply mutatis mutandis to appeals from the decision of the Tribunal.
Where an objector prefers an appeal to the Board, to the Tribunal and the court of appeal, any tax deposited as required by the law, shall continue to remain deposited with Commissioner General pending the final determination of the appeal.
Amicable Settlement
During appeal proceedings, the Board or Tribunal may consider relevant information in a manner that facilitates the speedy determination of an appeal. A party may apply for amicable settlement before judgement is delivered. The appeal shall be settled amicably within ninety (90) days from the date the Board or Tribunal approves the settlement process. Upon reaching an agreement, the parties shall submit a signed written settlement agreement, and the Board or Tribunal shall issue a final order. Where settlement is not concluded within ninety (90) days, an extension may be granted for a period not exceeding thirty (30) days upon sufficient reasons. If no settlement is reached, the appeal shall proceed for determination.
News & Events
