Mechanism of Tax Dispute Resolution in Tanzania

1. Notice of Objection.
A Taxpayer who is aggrieved by the tax decision or tax assessment of the Commissioner General of Tanzania Revenue Authority (TRA) is required by law to lodge a Notice of Objection within 30 days from the date of service of tax decision or tax assessment. Whereas, a Taxpayer who is aggrieved by the TRA’s custom decision is legally required to apply for review against the said decision. The Commissioner General of TRA will only admit the Notice of Objection once the Taxpayer has paid a tax deposit equal to the higher of either one-third of the tax assessed or tax not in dispute. The law allows a Taxpayer to request for waiver or reduction of the required tax deposit by providing reasons and evidence to support the request. Once the conditions of admission of objection have been fulfilled, the TRA will admit and review the objection and proceed to issue a proposal to settle the objection. The Taxpayer will be required to respond to TRA’s proposal (either accepting or disputing the proposal) within 30 days from the date of service of TRA’s proposal to settle the objection. On receipt of the Taxpayer’s response to the proposal to settle the objection, the TRA will review and proceed to issue a final determination which is the final decision.

The TRA is required by law to determine an objection to a tax decision or tax assessment within 6 months from the date of admission of the notice of objection. In the event the TRA has failed to determine the objection within the aforementioned period, the tax decision or tax assessment will be treated as a confirmed tax assessment or tax decision (deemed determination).

2. Appeals at the Tax Revenue Appeals Board (Board).A Taxpayer who is aggrieved by the TRA’s final determination or deemed determination is legally allowed to challenge the said decision by appealing to the Tax Revenue Appeals Board (Board). The law requires the Taxpayer to lodge the Notice of Intention to Appeal and Statement of Appeal (appeal) within 30 days and 45 days, respectively from the date of service of final determination or after a lapse of six months period from the date of admission of objection (deemed determination). The Board will hear and determine the appeal and proceed to issue a judgment and decree..

3. Appeals at the Tax Revenue Appeals Tribunal (Tribunal).In the event any party to proceedings before the Board is dissatisfied with the Board’s decision, a party may appeal further to the Tax Revenue Appeals Tribunal (Tribunal). A party (Taxpayer or TRA) is required to lodge the Notice of Intention to Appeal within 15 days from the date of the Board’s decision. Thereafter, the Taxpayer will be required to lodge a Statement of Appeal (appeal) to the Tribunal within 30 days from the date of service of the Board’s decision and proceedings. The Tribunal will hear and determine the appeal and proceed to issue a judgment and decree.

4. Appeals to the Court of Appeal of Tanzania.A party (Taxpayer or TRA) to the proceedings before the Tribunal who is aggrieved by the decision of the Tribunal is legally allowed to appeal to the Court of Appeal of Tanzania (Court). A party will be required to lodge a Notice of Appeal to the Tribunal within 14 days from the date of the Tribunal’s decision. Thereafter, the party will be required to lodge the Memorandum and Record of Appeal (appeal) to the Court within 60 days from the date of lodging the Notice of Appeal. Appeals to the Court of Appeal are only narrowed down to matters of law and the decision thereof are final. A party aggrieved by the Court’s decision has an avenue of challenging the Court’s decision through an application for review, subject to conditions thereof.

5. Amicable Settlement out of Court.The tax law in Tanzania allows a Taxpayer or TRA to engage in amicable settlement when the appeal is pending before the Board or Tribunal. The application for amicable settlement is made at any stage of the proceedings before the judgment of the Board or Tribunal is pronounced. The amicable settlement is aimed at expediting the resolution of tax disputes in Tanzania. Henceforth, Taxpayers have room to settle the tax disputes out of court while there is a pending appeal at the Board or Tribunal. Once the settlement of a tax dispute is successful, both parties report the status to the Board or Tribunal and the appeal will be marked as settled.

Taxpayers are encouraged to familiarize themselves with the tax dispute resolution mechanisms in order to resolve the tax disputes with the Tanzania Revenue Authority (TRA). Eternal Attorneys assist clients in lodging notices of objections and applications for review at TRA. Also, we represent Taxpayers at the Tax Revenue Appeals Board, Tax Revenue Appeals Tribunal, and Court of Appeal. We also assist Taxpayers in an amicable settlement with the TRA.

For more information, please contact us through our email [email protected] and mobile number 0752 741 608.
Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on whatsapp