Law governing tax Objections and Appeals
Objections and Appeals is governed by Tax Administration Act no. 438 R.E 2019 and Tax Revenue Appeals Act, Cap.408 R.E 2019 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 who is aggrieved by a tax decision made by the Commission General may object the decision by filling notice of objection . Notice of Objection to the Commissioner General within 30 days from the date of service of the tax decision. An objection to a tax decision shall be made in writing stating the grounds upon which it is made and such objection to a tax decision shall be accompanied by relevant document or information which the tax payer intends to rely upon to support his objection. Such objection shall not be admitted unless the taxpayer has paid amount of tax which is not in dispute or one third of the assessed tax whichever the amount is greater.
The tax not in dispute and in case customs duty of the whole of duty or any tax assessed on imports shall be payable at the time of filing the notice of objection and if the due date occurred earlier than the period of thirty days the tax not in dispute shall be payable on that due date.
Upon application by taxpayer within fifteen days from the date of the issue of the tax decision, and where the Commissioner General is satisfied that there exist good reason warranting reduction or waiver, he may waive the amount to be paid or accept the lesser amount. Where a taxpayer files an objection and makes statutory payment, the liability to the remaining assessed tax shall be suspended until the objection is finally determined.
A person who has a reasonable ground to warrant extension of time to file an objection against the tax decision may apply for an extension of time within 7 days before expiration of the time limit for lodging the notice of objection. Where the Commissioner General is satisfied by the reason started in the application made, he shall grant the extension of time and save the notice of his decision to the applicant. The extension granted shall not exceed 30 days.
Where and to whom the objection should be lodged?
To the Regional Office where the taxpayer is registered
Commissioner for Customs and excise,
Commissioner for Large Taxpayers,
Commissioner for Domestic Revenue.
Appellant machinery
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.
News & Events
