CHAPTER 438 THE TAX ADMINISTRATION ACT [PRINCIPAL LEGISLATION] . Arrangement of Sections AG of O n Section Title iss io m part i r pe PRELIMINARY PROVISIONS t tho u i 1. Short title. d w 2. Application. uteib 3. Interpretation. dis tr 4. Currency point system. or ed uc part ii rod TAX LAWS AND THEIR INTERP RreEp TATION y b e (a) Tax Law ms a k 5. Powers of Commissioner General and tbaox o officers. 6. Relationship with customs law. s f th i 7. International agreements. art o p (b). NIn oterpretation of Tax Laws 8. Schemes for obtainingr vuen ddue tax benefits. 9. Issuance of practic e ree snotes. 10. Revocation of phrtasctice notes. g 11. Private and lcl lra i ss rulings. 12. Refusal ioaf. Aapplication for private or class ruling. 13. Issunazn acne of private and class rulings. 14. Rf eTvaocation of private and class rulings. o en t nm part iii ve r o THE AUTHORITY, TAX PAYERS AND TAX CONSULTANTS 5 G 20 2 (a) The Authority © 15. Administration of tax laws. 16. Authorisation of tax officers. 17. Identification of tax or authorised officers. 18. Experts. 19. Assistance by officer from public institutions. 283 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] 20. Remuneration for complying with tax laws. 21. Confidentiality. (b) Taxpayer Identification Number 22. Application for Taxpayer Identification Number. . 23. Registration of small vendors and service providers. G O A 24. Issue of Taxpayer Identification Number. n o f 25. Use of Taxpayer Identification Number. siois 26. Cancellation, replacement and amendment of Taxpayer Identification Number. erm 27. Right to information. ut p 28. Right to representation. o with d (c) Tax Consultants uteib 29. Licensing of tax consultants. r di st or part iv edc ESTABLISHMENT OF TAX OMBUDrodS uMAN p 30. Establishment of office of Tax Ombudsman. re be 31. Appointment of Tax Ombudsman. y a 32. Duties of Tax Ombudsman. m ok 33. Limitation of powers of tax Ombudsm abnos . i 34. Confidentiality. f th 35. Protection of Tax Ombudsman artn oa d his officers. 36. Procedure for conducting aNnod p handling complaints. ed . erv part v OFFICIAL C rOe s s MMUNICATIONS AND DOCUMENTATION t 37. Official langlu h l r aigges. 38. Forms ana.d A notices. 39. Authzornisia ed and defective documents. 40. PaTpaenr documents filed with Commissioner General. 41. t oP faper documents served by Commissioner General. 4m2e. n Electronic document system. rn ov e G part vi 250 MAINTENANCE OF DOCUMENTS AND PROVISION OF INFORMATION ©2 (a) Maintenance of Documents 43. Maintenance of documents. 44. Issuance of fiscal receipt. 284 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) Regular Provision of Information 45. Tax return. 46. Electronic filing of tax returns. 47. Assistance in preparing tax return. 48. Extension of time to file tax return. G. 49. Failure to file tax return on time. OA f 50. Correction of tax returns and other information. o sio n is (c) Access to Information and Assets erm 51. Access to information and assests. t p ou 52. Possessor’s rights and obligations. with 53. Notice to obtain information. d te 54. Disclosure of information on contracted services. trib u 55. Tax audit or investigation. disr 56. Registration and monitoring of storage facility. ed o du c part vii proe PRIMARY TAX LIABL b IeT rY y 57. Assessment and self-assessment. m a 58. Jeorpady assessment. k bo o 59. Adjusted assessment. his 60. Notice of assessment. f t art o No p . part viii veD d ISPUTE RESOLUTION r 61. Tax decisions. e re s 62. Objection to taxht sg decisions. 63. Decisions onl roiAl bjection. 64. Appealn aiag .a inst objection decisions. nz a f T a part ix nt o PAYMENT AND RECOVERY OF TAX me ernv (a) Regular Payment of Tax Go 5 65. Time for paying tax. 20 2 66. Extension of time for paying tax. © 67. Manner and place of paying tax. 68. Order of paying tax. 69. Taxpayer’s accounts. 285 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) Recovery of Tax from Taxpayer 70. Suit for unpaid tax. 71. Security for withholding tax. 72. Charge over assets. 73. Sale of charged assets. G. 74. Restraint of person. A f O 75. Restraint of assets. o sio n mis (c) Recovery from Third Parties er 76. Liability of managers of entities. ut p o 77. Receivers. ithw 78. Third party debtors and guarantors. ted 79. Compliance with notice or security. u trib 80. Agents of non-residents. di s or ed part x ucd REMISSION AND REFUND OeFp rToAX r 81. Remission of interest and penalty. bey 82. Application for tax refund. a m 83. Decision on application. k oo 84. Payment of tax refund. b his 85. Short levy or erroneous refund. t of pa rt o . N part xi INTEREveS dT, PENALTIES AND OFFENCES ers ts re (a) Interest h 86. Interest for ul nri g l der estimating tax payable. 87. Interest ifao. rA failing to pay tax. za n an (b) Penalties T 88. t oP f enalty for failing to maintain documents. 8 n m9e. Penalty for failing to file tax return. ernv 90. Penalty for making false or misleading statements. G o 91. Penalty for aiding and abetting. 25 ©20 (c) Assessment of Interest and Penalties 92. Assessment of interest and penalties. 286 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (d) Offences 93. Offence for failing to comply with tax law. 94. Offence for failing to pay tax. 95. Offence for making or using false or misleading statements or documents. 96. Offence for impeding tax administration. . 97. Offence for failing to use fiscal device. OAG f 98. Offences by authorised and unauthorised persons. n oio 99. Offences by entities. issm 100. Obligation to pay tax not affected by conviction or compoundment. pe r 101. General penalty. ou t h 102. Offence for aiding or abetting. it w 103. VAT offence. tedu 104. Stamp duty offences. ist rib 105. Excise duty offences. or d 106. Compounding of offences. d ce 107. Repealed. u rod re p part xii be TAX PROCEED ay k m INGS 108. Multiple proceedings. oo b 109. Power of search, seizure and arrest. s th i 110. Search without warrant. ofrt 111. Provision of security. o p a 112. Publication of offenders. . Nd 113. Regulations. erv e 114. Amendments by Mreis nister. ts l ri gh Al part xiii ia. TRANSITION AND SAVINGS PROVISIONS n 115. Traanns ziation and savings provisions. of T t en SCHEDULES rnm ve 5 G o 20 2 © 287 CHAPTER 438 THE TAX ADMINISTRATION ACT . An Act to consolidate provisions relating to tax administration with a view AG to easing the administration of tax and enforcement of tax laws by the O n o f Tanzania Revenue Authority; to introduce currency point system in tiasxios administration; and to provide matters incidental thereto. rm t p e [1st Augouust, 2015] [GN. No .w 3 it0h4 of 2015] Acts Nos. 8 of 2019 ed 10 of 2015 8 of 2020 bu t 2 of 2016 3 of 2021 str i 4 of 2017 10 of 2021 dir 7 of 2017 5 of 2022 d o 4 of 2018 7 of 2023 uc e d rep ro e b P AmaRy T I k PRELIMI o NboARY PROVISIONS thi s Short title 1. This Act may be rct io f a ted as the Tax Administration Act. o p Application 2. This Act s N dh. all apply to Mainland Tanzania as well as to Tanzania sZera vne zibar in respect of tax laws which apply to both parts otfs tr ehe United Republic. rig h Interpretation 3.–A(ll. 1) The provisions of this Act shall, for better carrying out Acts Nos. ia 7 of 2017 s. 44 anand giving effect to the purposes of this Act, apply to all other nz8 of 2019 s. 42 5 of 2022 s Ta tax laws. nt .o 1f 05 me (2) Any term which is not defined in this Act shall, to the rn ve extent necessary to give effect to the purposes of this Act, have Go 5 a meaning ascribed to it in the relevant tax law. 2 20 (3) In this Act, unless the context otherwise requires- © “adjusted assessment” means an assessment made pursuant to section 59; 288 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] “arrangement” means an action, agreement, arrangement, course of conduct, dealing, promise, transaction, understanding or undertaking involving more than one person and it includes a part of an arrangement; . “assessment” means a determination of the amount of a G OA tax liability made under a tax law by the Commissioner f n o General or by way of self-assessment and it includessiois matters prescribed in the First Schedule; ermp “Authority” means the Tanzania Revenue Auutt o hority Cap. 399 established under the Tanzania Revenue Auth ith owrity Act; d “authorised officer” means an officer of the Autuhteb ority dealing with tax matters in relation to tax laws a tri dins d who has been authorised in writing to perform s por d ecial functions in relation to any tax law; ce du “Board” means the Tax Revenue eAp rpopeals Board established Cap. 408 under the Tax Revenue App r beeals Act; “Commissioner General” meaay m ns the Commissioner General Cap. 399 appointed under the Tok boanzania Revenue Authority Act; “charged assets owne tdh i sb y a taxpayer” means assets held by a withholding artg oe fnt on trust under section 71 or assets charged undeo rp asection 72; “class rulinged” . Nmeans a decision by the Commissioner Generael rvs on tax issues raised by a group of persons with comsm r e ht on interest; “co ig lsl trs of charge and sale” with respect to assets, means a. A i any expenditure incurred or to be incurred by the an nz Commissioner General or an authorised agent with Ta of respect to- en t (a) creating or releasing a charge over the assets; or rnme (b) taking possession, holding and selling the charged Gov assets; 25 20 “currency point” means a value prescribed by a tax law for © the purpose of protecting value of currency against the effects of inflation; 289 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Act No. “customs law” means the East African Community Customs 1 of 2005 [E.A.C.M.A] Management Act and any regulations made under that Act; “document” means a statement in writing or in electronic . forms which includes an account, assessment, book, G OA certificate, claim, note, notice, order, record, return or of n ruling; io iss “file” in relation to a document, includes lodginger mp or furnishing a document in writing or in electronico uf to rm; “fiscal device” means an electronic receipwtit h issuing d machine or any other electronic systebmu te authorised by the Commissioner General to be u tri dised for business transactions; or d “fiscal receipt” means a receipt or idnu cveoice issued by using a fiscal device, Government el ro eepctronic payment gateway system or any other electro bne ric system approved by the Commissioner General; ay m “generally accepted acbco ookunting principles” means the accounting princip is thles adopted by the National Board of Accountants an f rdt o Auditors; “guarantor” meao np as a person who grants the Commissioner General th N ede . security for tax payable or to become payable by anotehrvs er taxpayer; e “manahgtse rr” in relation to an entity, includes- (lla ri) g a councillor, director, manager, member, officer or ia. A other person who participates alone or jointly with an nz other persons in making senior management decisions a of T on behalf of the entity; nt e (b) a partner and a trustee; m ern (c) a person treated as a manager of an entity by any other Gov tax law; and 25 20 (d) a person whose directions and instructions affect the © entity; “Minister” means the Minister responsible for finance; “objection decision” means a decision in respect of a tax decision made under section 63; 290 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] “other tax laws” means any tax laws other than this Act, administered by the Tanzania Revenue Authority; “owner of assets” means a person who has been issued with Cap. 147 a licence under the Excise (Management and Tariff) Act . with respect to ownership of any plant, vehicle, animal G OA or other article used for manufacturing, selling or n o f distributing excisable goods or any article found on ansyiois premises used by that person for that purpose; pe rm “possessor of an asset” includes- ut o (a) in relation to premises or a place, the owne wr,i t hmanager d or any other person on the premises or bpul taece; and (b) in relation to any other asset, a perso t dnis rfirom whom the asset is seized or taken; r d o “private ruling” means a decision e dub cy the Commissioner General on tax issues raised bye pa ro person; “restrain” includes detaining, r lboecking up, marking, sealing, seizing, stopping, taking ay maway or otherwise securing; “self-assessment” meansb o oakn assessment made under a tax law by a person whthois is obliged to file a tax return; “statutory rate” m ofrt eans the prevailing discount rate determined boy p athe Bank of Tanzania; “tax” for pur N epdo . ses of administration under this Act, includes tax, chsaerr vges, fees, tolls, rates, levies, duties, penalty and e intehtrse rst imposed under any tax law and any additional p g ll r iofits tax payable under any arrangement or agreement; “t.a Aia x benefit” in relation to a person means a benefit earned by- an nz (a) avoiding, reducing or postponing a tax liability of that Ta of person; t en (b) increasing a claim of the person for a refund of tax; ern m (c) preventing or obstructing collection of tax from the ov G person; or 02 5 2 (d) any other act for which the Commissioner General is © of the opinion that it might result into the reduction of a person’s tax liability; “tax debtor” means a person who owes tax to the Government; “tax law” includes- 291 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Cap. 399 (a) a law listed in the First Schedule to the Tanzania Act. No. 1 of 2005 Revenue Authority Act but does not include the East [E.A.C.M.A] African Community Customs Management Act; (b) any other law providing for administration of tax by . the Authority; G OA (c) any international agreement concluded under section f n o 7; and siois (d) any regulations made under this Act or made uenrmp der any Act mentioned in paragraph (a) or (b); ut o “tax officer” means any officer of the Authority de wai thling with d tax matters in relation to any tax law; te bu “taxpayer” means any person who is liabled itso tri pay tax; “tax return” means a return prescribed din or the First Schedule to this Act; e du c “tax shortfall” means underpaymep reont of tax which in the Commissioner General’s opien r b ion may have resulted into inaccuracy statement ha y dm ait gone undetected; “vehicle” includes everyb od okescription of conveyance for the transport of person s ths i or goods by land; “vessel” includes ertv oe f ry description of conveyance for the transport of po ep arsons or goods by water; “withholding N ed .a gent” means a person obliged to withhold tax from a rv s pe ayment; and e “withhtos h lrding tax” means the income tax which is required tllo ri gbe withheld by a withholding agent from a payment A ia. under Subdivision A of Division II of Part VII of the n Cap. 332 zan Income Tax Act. of Ta Currenecyn tp oint 4.–(1) An amount of money referred to in a specific tax law syste ern m shall, for purposes of the promotion of fairness in the tax system ov G and protection against the effects of inflation, be expressed in 250 terms of currency points. ©2 (2) The currency point system shall apply in respect of penalties and fines prescribed under this Act and any other tax law. (3) The initial value of a currency point shall be set out in the Second Schedule to this Act. 292 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (4) The Minister may, by order published in the Gazette, adjust the value of the currency point to reflect changes in the index of the consumer prices. . PART II AG of O TAX LAWS AND THEIR INTERPRETATION n sio (a) Tax Laws is pe rm t Powers of 5.–(1) The powers of the Commissioner General souhall, in Commissioner th General and tax addition to the powers granted under this Act, be de wx iercised in officers respect of any tax laws. uteib (2) A tax officer may, in performing thei str d functions under this Act- r ed o (a) act for the purposes of more dtuh c an one tax law at the same time; and prore (b) gather information for yt bh ee purposes of any tax law in the proper executio a kn m of duties under a particular tax law. o s b o i th Relationship with 6.–(1) Where the curt so ftoms law applies to the Value Added Tax customs law or the Excise Dou pt ay on imported or exported goods and for matters relatedd. N e thereto, Parts I, II, III, IV and V of this Act shall apply.erv (2) Thres hts e Commissioner General may, subject to subsection (3) lal rni gd where a tax law has provided for certain administrative pr. oAia visions of the customs law, apply relevant provisions of this n za Act instead of the provisions of the customs law. Tan of (3) The Commissioner General shall exercise the powers in en t subsection (2) in a manner consistent with the customs law. ern m (4) The provisions of Parts II (b), III and VIII of this Act ov G shall, to the extent that they are inconsistent with the provisions 25 ©20 of the customs law, apply to the customs law. International 7.–(1) The provisions of an international agreement which the agreements Act No. United Republic is a party shall, to the extent that the provisions 10 of 2021 s. 6 of the agreement are inconsistent with the provisions of any tax law, prevail over the provisions of the tax laws. 293 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (2) For purposes of this section “international agreement” means a treaty or other agreement which the United Republic signed with a foreign Government for the purpose of providing reciprocal assistance for the administration or . enforcement of tax laws. G OA (3) For purposes of this section, the Host Government n o f Agreement concerning the East Africa Crude Oil Pipeliinsse io (EACOP) Project shall be regarded as an internapteio rmnal agreement and the provisions of subsection (1) shall aopup t ly. ith (b) Interpretation of Tax Laws d w ibu te r ist Schemes for 8.–(1) Notwithstanding any provision of trh dis Act, where the obtaining undue o tax benefits Commissioner General is satisfied thuacte dany scheme that has Acts Nos. the effect of conferring tax benefit oprno d any person was entered 2 of 2016 s. 53 re 4 of 2017 s. 48 into or carried out- e (a) solely or mainly for atyh be purpose of obtaining that benefit; and k m oo (b) by means or in b h ias manner that would not normally be employed for bf tt o ona fide business purposes, or by means or in a manar p ner of the creation of rights or obligations o that wo. Nd uld not normally be created between persons dea e elrivng at arm’s length, the Cotsm s remissioner General may determine the liability for any triag hx imposed by a tax law and its amount, as if the scheme l haa. Adl not been entered into or carried out, or in such manner za nai s, in the circumstances of the case, he considers appropriate an f T for the prevention or diminution of the tax benefits sought to t o en be obtained by the scheme. rnm (2) A determination under subsection (1) shall be deemed ov e G to be an assessment of tax and the provisions of this Act and 5 02 any other provisions of tax law in relation to assessments, shall ©2 apply accordingly. (3) Where the Commissioner General, after making findings that in a particular area or locality within a local government authority area, lease agreement between landlords and tenants do not reflect authentic or actual 294 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] transactional values, the Commissioner General shall publish in the Gazette predetermined minimum rental values for such locality or area based on actual average rental values obtained in the locality or area: . Provided that, OAG (a) such predetermined rental values shall only apply of n to properties considered to be of the same quality osriois standard; and ermp (b) independent valuers were involved in advisoiun t g the Commissioner General. ith d w (4) In this section “bona fide business purpbou tsees” does not include obtaining tax benefit. i dis tr or Issuance of 9.–(1) The Commissioner General muacye, d issue practice notes practice notes with a view to ensuring consistency ipnro dthe administration of tax laws and to provide guidance to p e be er rsons affected by such laws. (2) A practice note shall- y ma (a) be made by way ofo ao k circular; (b) categorically stahtise b that it is a practice note; t (c) have a numbrt eo fr and subject heading by which it can be identifiedo; p a and (d) apply fdr. o Nm the date specified in such note, or from the dasteer voef the issuance. re Revocation of 10.–(ig1h ts r ) The Commissioner General may revoke a practice practice notes no. At lel in whole or part. nia za (2) The enactment of an Act of Parliament or issuance of Tan a practice note that is inconsistent with an existing practice f nt o note, revokes the existing practice note to the extent of the e rnm inconsistency. veo 5 G2 Private and class 11.–(1) The Commissioner General may, on application in 20 rulings © writing by a person, issue a private ruling or a class ruling setting out position on the application of a tax law to an arrangement proposed or entered into- (a) in the case of a private ruling, by that person; or 295 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) in the case of a class ruling, by persons in a specified class. (2) A private or class ruling may apply to multiple arrangements or multiple tax laws. . (3) Where the Commissioner General issues a private AG O or class ruling in respect of the application of a tax law to a of n proposed arrangement in favour of the applicant or a persosniois in a specified class, such ruling shall bind the Commissieormp ner General. ut o (4) The ruling issued under this section shall be th wbiinding- d (a) if prior to its issue, the applicant makes-bu te (i) full and true disclosure of adlils triaspects of the arrangement to which the r dr uo l ing applies to the Commissioner General; adnu cde (ii) the arrangement proce ro epeds in all material respects as described in the r abepplication for the ruling; (b) if it clearly states in it sm ahyeading to be a private ruling or class ruling; and ok s b o (c) from date of iss thu ie for the period specified in the ruling. (5) A private or rc f t loass ruling shall not have binding effect to the Commissionoe pr a General with respect to any person other than the applidc. e aNnt or persons in the specified class. (6) A pserr vson shall not challenge a private or class ruling, e unlessh ttsh re challenge is in respect of a tax decision made with respll eri gct to an arrangement which is the subject of a ruling. A ia. (7) For purposes of this section, a class of persons includes- an nz (a) members of an entity; and Ta of (b) such persons who, in the opinion of the Commissioner nt e General, may be identified with respect to the rnme application of particular provisions of tax laws. Gov 02 5 Refusal of 12.–(1) The Commissioner General may refuse an application ©2 application for private or class for a private or class ruling if- ruling (a) in the case of a private ruling- (i) the arrangement has already been the subject of a tax decision; or 296 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (ii) the Commissioner General has commenced an investigation of the applicant’s tax affairs that covers the arrangement or, before the application, has notified the applicant in writing of an intention . to do so; AG O (b) the Commissioner General is of the opinion that n o f an existing practice note adequately covers tihseios arrangement; ermp (c) the application is frivolous or vexatious; ut o (d) the arrangement has not been carried out an wdi th there are d reasonable grounds to believe that it wil te bl unot be carried out; ri dis t (e) the applicant has not providedd ot r he Commissioner General with sufficient informuaced tion to make a ruling; or ep ro (f) in the opinion of the Co bme rmissioner General, it would be unreasonable to co mm ayply with the application having regard to the resou k bor oces needed to comply and any other matters the Co is tmh missioner General considers relevant. (2) Where the rtC o fommissioner General refuses to grant private or class o rpu a ling, he shall serve the applicant with a written noticed .s N e tating the reasons for the refusal. se rv Issuance of 13.–(1)ts Thr e e Commissioner General may issue- private and class gh rulings (la ri) a private ruling by serving a written notice of the ruling l a. A i to the applicant; or za n (b) a class ruling by serving a written notice of the ruling to an f T the applicant and making the ruling publicly available. t o en (2) The Commissioner General may, in issuing a private or m ern class ruling, base on the assumptions of a future event or other v G o matters he considered appropriate. 5 02 (3) A private or class ruling shall- ©2 (a) set out the matters ruled on, identify the tax laws, periods and arrangements to which the ruling applies and any assumptions that affect the ruling; 297 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) in the case of a private ruling, identify the applicant and his Taxpayer Identification Number; and (c) in the case of a class ruling, refrain from revealing the identity of- . (i) the applicant, unless the applicant has consented G OA in writing; or of n (ii) the applicant’s Taxpayer Identification Numbiessr i,o the class members or any other person idenptei rfimed or referred to in the ruling but an applicaunt o t may instruct in writing that his identity be reitvh w ealed. d ute Revocation of 14.–(1) The Commissioner General may, by ai sntro ibtice in writing, private and class rulings revoke a private or class ruling in whole o ro ri dn part. (2) Where the ruling is revoked unud d ceer subsection (1), the Commissioner General shall- pro d (a) in the case of a private ru re beling, serve the applicant with a revocation notice; anady m (b) in the case of a clasks oo ruling, serve the applicants and make the revochaist ibon notice publicly available. f t art o o p PART III N TdH. e E AUTHORITY, TAX PAYERS rv es e AND TAX CONSULTANTS ts r rig h (a) The Authority All Administration of 1a5. i . The Authority shall be responsible for administering and tax laws n nz a giving effect to the tax laws in accordance with the provisions Cap. 399 f T a o of the Tanzania Revenue Authority Act. nte Autrhnomrisation of 16.–(1) The Commissioner General may, pursuant to section otavxe officers GCap. 399 17 of the Tanzania Revenue Authority Act, delegate his 5 02 functions to tax officers in relation to tax laws. ©2 (2) The Commissioner General shall not delegate the functions referred to under subsection (1) to any person referred to under sections 18 and 19. 298 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (3) The tax officer may, in some circumstances or where the officer is authorised to exercise such powers, exercise particular power under a tax law. (4) The Revenue Commissioner appointed under the Tanzania . Cap. 399 Revenue Authority Act and vested with the responsibility of OAG administering any tax law may exercise the powers to- of n (a) compound offences under section 106; and siois (b) remit penalties and interest under section 81; or ermp (c) refund tax under section 84. ut tho w i Identification of 17.–(1) The Authority shall issue an identity cartded to each tax tax or authorised u officers officer or authorised officer. tribis (2) An identity card shall bear the logo oorf d the Authority and a passport size photograph of the tax orc eu aduthorised officer. (3) When a tax or authorised opffiro dcer exercises powers or performs functions for purposese or e b f the administration of tax law, that officer shall at all tim meays wear and produce the identity card upon request by a memk oo ber of the public. (4) Where the tax ohri sa buthorised officer fails to produce the t identity card as req f rut oested, that tax or authorised officer is not authorised to peor fpo arm any of the function under a tax law, and such member .o Nd f the public may refuse to deal with the officer. rvee Experts 18.–(1)s Thr es e Authority may engage an expert on such terms and t ricgo h nditions as the Commissioner General thinks fit, to as. sAi llst the Authority in the proper performance of its functions. an ia z (2) The Commissioner General shall supervise such an expert. n Ta (3) A taxpayer may with reasonable cause refuse to nt of deal directly with an expert and write a complaint to the me rn Commissioner General. veo (4) Where an expert is engaged and it is discovered that his 25 G 0 engagement may result into a conflict of interest, the Authority ©2 may terminate the engagement of such expert upon discovery of such conflict of interest. (5) A person who has reasonable grounds to believe that the expert engaged under subsection (1) has a conflict of interest shall, in writing, complain to the Commissioner General. 299 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (6) Where a complaint is made under subsections (3) and (5) the Commissioner General shall, within seven days from the date of the receipt of the complaint, make a decision on the complaint. Assistance by 19.–(1) The Commissioner General may request for an officer G. officer from OA f public institutions from a public institution to assist or protect the Authority in o the proper performance of its functions under this Act. sio n s (2) The Commissioner General shall supervise the peurmb ilic officer referred to under subsection (1) to assist himou t ipn the performance of such functions. ith ted w Remuneration for 20.–(1) A person shall not, unless expressly p iboustr vided for in a complying with tax laws tax law, be entitled to any remuneration oorr drieimbursement of expenses from the Authority for complyiend c g with the provisions of a tax law. u rod (2) Subsection (1) shall not apep rl eyp to the remuneration of- (a) an officer; or y ba (b) an expert or a puokb mlic officer who is assisting the Authority in thei o sp berformance of its functions. (3) The remunera th otfi on of persons referred to in subsection t (2) shall be dete pram r ined in accordance with the Tanzania Cap. 399 Revenue Authd.o Nro ity Act. rve Confidentiality 21.–(1) A e res person who is or was employed or engaged by the Auth ts ioghrity to provide assistance to the Authority shall treat all infAoll r . rmation and documents that, by reason of his employment ia za nor engagement, came into his possession or knowledge in Tan connection with any tax law, as secret and confidential. of t (2) Notwithstanding the provisions of subsection (1), a en nm person may disclose information or documents referred to in r ov e subsection (1) if such disclosure is- 25 G (a) made to a person who is currently employed or engaged 0 ©2 by the Authority and the information is required in the performance of his employment or engagement; (b) for the purposes of a tax law; (c) authorised by the Commissioner General; or (d) made before a court or tribunal. 300 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (3) A person may disclose information and documents referred to in subsection (1) to- (a) the Minister; (b) any person in the service of the Government of the . United Republic or the Revolutionary Government of G OA Zanzibar, in a revenue or statistical department where of n such disclosure is necessary for the performance of t io ihsse person’s official duties; pe rm (c) the Controller and Auditor-General or anyo up t erson authorised by the Controller and Auditwoi rth-General d where such disclosure is necessary for th te beu performance of official duties; or ist ri d (d) the competent authority of the Go r dv oernment of another country with which the Unitedud c eRepublic has entered into an international agreem ro epent, to the extent permitted under that agreement. r be (4) This section does not y mapa ply to information that may be published under section 1 o bo12k . (5) This section doehsis t n ot prevent disclosure of information relating to a specific o frt taxpayer to the taxpayer concerned or, with the taxpayeor ’ps a written consent, to another person. d. N erv e s (b) Taxpayer Identification Number ts re h Application 22.–ll rA (ig1) A person who becomes potentially liable to tax by for Taxpayer Identification nriae . ason of carrying a business or investment shall apply for a a Number nza Taxpayer Identification Number within fifteen days from the Acts Nos. f T 8 of 2019 ts .o 43 date of commencing the business. 3 of 2m02e1n s. 51 (2) Notwithstanding the provision of subsection (1), the 5 ofr n2022 s. 106 ov e Commissioner General shall- 5 G (a) register and issue Taxpayer Identification Number to 022 every Tanzanian citizen who has been registered and © issued with a National Identification Number under Cap. 36 the Registration and Identification of Persons Act; and (b) ensure each Taxpayer Identification Number issued is connected with a National Identification Number. 301 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (3) A person who owns a Taxpayer Identification Number shall not apply for another Taxpayer Identification Number: Provided that, for purposes of this Act, a registered person with a branch in Tanzania Zanzibar shall use Zanzibar . Registration Number issued by Zanzibar Revenue Board. AG O (4) An application for a Taxpayer Identification Number f ion o shall be- iss (a) in the prescribed form; pe rm (b) supported by documentary evidence of the appult o icant’s identity; and ith d w (c) filed in the prescribed manner. uteb (5) The provisions of subsection (2) ri dis thall come into operation on 1st January, 2023. or d (6) Where a person is registered anddu ciessued with a Taxpayer Identification Number for the firsetp rtoime, for the purposes of carrying on a business or inves t r bme ent, the requirement to pay Cap. 332 instalment tax under the Inco ay mme Tax Act shall be deferred for a period of six months fromo to k b he date when the Tax Identification Number was issued. th is (7) A person rret of ferred in subsection (6) shall pay the whole of the defoe rp ared tax in the respective year in three equal instalments, . N eidn the remaining period. (8) Wheervs re the deferment granted under subsection (6) e has thhets erffect of deferring the tax payable beyond the year of incoll rmi g e to which the tax relates, the whole of the tax payable siah. Aall be paid in the last instalment period of the year of income. an nz (9) Nothing in this section shall be taken to preclude of Ta the person granted deferment under this section to pay the en t assessed tax during the deferment period. rnm ve G oRegistration of 23.–(1) The Commissioner General shall recognise and register 25 small vendors 0 and service small vendors and service providers conducting business in an ©2 providers informal sector. Acts Nos. 4 of 2017 s. 49 (2) A person registered under subsection (1), shall be issued 8 of 2019 s. 44 with an identification card by the Commissioner General. 302 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (3) The Minister may make regulations prescribing for the fees, manner of recognising and registration and any other matter relating to small vendors or service providers. (4) For purposes of this section, “small vendors and service . providers” include hawkers (machinga), caterers, event OAG managers, masters of ceremony and such other small vendors n o f or service providers as the Minister may prescribe. iss io [s. rm p e22A] t ou Issue of Taxpayer 24.–(1) The Commissioner General may, for puirthposes of Identification w Number identification and cross-checking and in thuet e dcase of an application made under section 22, issue a tpribis erson with the Taxpayer Identification Number, within r d o seven days upon receipt of the application. ed uc (2) A Taxpayer Identification d p ro Number shall not be transferred or used by another pbe e e rrson. (3) A person shall own one m aTyaxpayer Identification Number and use such Taxpayer Idenoko t ification Number for the purposes of all tax laws. b thi s (4) The Commis f rts oioner General shall not issue a Taxpayer Identification Nu a o mp ber to a person unless he is satisfied- (a) as to thd. e N person’s true identity; and (b) thaet rvs tehe person does not have an existing Taxpayer I drets entification Number. (l5 ri)g hWhere the Commissioner General refuses an application l fiao. r A a Taxpayer Identification Number, he shall serve the n za applicant with written notice of refusal within fourteen days an f T from the date of receipt of the application giving reasons for o en t such refusal. m ern [s. 23] ov 25 G 0 Use of Taxpayer 25.–(1) A person who has been issued with the Taxpayer ©2 Identification Number Identification Number by the Authority shall include the number Act No. in any claim, notice, return, statement or other document 4 of 2018 s. 63 submitted to the Authority or used for the purposes of tax law. (2) Unless directed otherwise by the Commissioner General, an institution mentioned in the Third Schedule shall, 303 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] when transacting with any person in respect of any matters prescribed in the Third Schedule, require from such person a Taxpayer Identification Number. (3) A person who intends to conduct any transaction under . subsection (2) shall produce to the institution, the person’s AG O Taxpayer Identification Number Certificate or a certified copy f n o of that certificate. siois (4) The Commissioner General may, in writing, requpire rem an institution mentioned in the Third Schedule to furn t oiush him with information relating to- ith d w (a) the value of the transaction prescribed uitneb the Second Column of the Third Schedule i disc tronducted with that institution during the perido od r specified in the Commissioner General’s noticeu;cd eand (b) the names, addresses anedp ro Taxpayer Identification Numbers of the persons bwe irth which those transactions were conducted. may (5) An institution whoio k b ch has been required to furnish information under sub ths ies ction (4) shall, within seven days from the date of receipt rto of f the notice, furnish the Commissioner General with theo pin a formation required. (6) The pa. Ned rticulars to be furnished in respect of an applicatio rv sne for a Taxpayer Identification Number shall not be e a basis fso rht r assessiment of tax. (ll7 ri) g A person or institution that contravenes this section ciao. Ammits an offence. an nz [s. 24] Ta t o f Cancelleantion, 26.–(1) The Commissioner General shall cancel a Taxpayer replacement anedr n m amendment Identification Number where he is satisfied that- ov G f Taxpayer (a) the bearer of the number is dead or, in the case of a 25 Identification 0 Number body corporate, is wound up; ©2 (b) a person described in Taxpayer Identification Number Certificate is fictitious; 304 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (c) the identity of a person holding the certificate is different from the identity of a person to whom the certificate was issued; (d) the person to whom the Taxpayer Identification . Number Certificate was issued is a holder of another OAG number; or of n (e) there is reasonable grounds to warrant cancellation isosf io Taxpayer Identification Number. rm pe (2) A person who owns a Taxpayer Identification Nt ouumber shall, in writing and within thirty days from the dwaithte of any d change of details referred to in the Taxpayerb u tIedentification Number Certificate, notify the Commissiondies trri General of the changes in the Certificate. or d (3) The Commissioner General mce duay, without cancelling a Taxpayer Identification Numberp,re oissue a person with an amended Taxpayer Identificatioen r Number Certificate when appropriate. ay b m ok bo [s. 25] thi s Right to 27. The Authority s hofa ll provide to the taxpayer information information regarding the ta pxa rt o payer’s position in accordance with the provisions of dt.h Ne respective tax law. rve se [s. 26] e s r Right to 28.– r(ig1 h)t A taxpayer- representation ll Act No. . A(a) has the right to be represented in tax matters; and a 8 of 2020 s. 68 an i z (b) shall notify the Commissioner General in writing upon n Ta appointing a representative. of nt (2) The Authority is not obliged to communicate with a e rnm taxpayer through the taxpayer’s representative. veo (3) A taxpayer’s representative referred to under this section 5 G 02 shall be a practising advocate, a tax consultant or such other ©2 person authorised by power of attorney by the taxpayer. [s. 27] 305 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (c) Tax Consultants Licensing of tax 29.–(1) Subject to subsection (2), the Commissioner General consultants Act No. may licence an individual to act as a tax consultant on behalf . 5 of 2022 s. 107 of any person under a tax law for purposes of discharging the AG O person’s obligation in a tax law. of on (2) The Commissioner General shall not licence an individuisas il to act as a tax consultant under a tax law unless he is sa rm tpiesfied that the individual has fulfilled the conditions prestchor uitbed in the regulations or licence issued by the Commissiod nw ier. (3) A duly licensed tax consultant may act a te ibsu an agent of a r taxpayer under any tax law subject to condi t t diios ns prescribed in the regulations or licence. or ed (4) Except as otherwise providedd uf cor under this Act, an individual other than an employeep r o re or manager of a person, who is not licensed under this sye bc etion, shall not act on behalf of such person or communicakt em w a ith the Commissioner General on pretext of representin bgo oa person on any matter under any tax law. thi s rt o f a [s. 28] o pN ed . v PART IV r ES e rTesABLISHMENT OF TAX OMBUDSMAN1 htsig Establishment 30. ll r. A There is hereby established an office to be known as Tax of office of Tax ia Ombudsman anOmbudsman Service which shall be responsible for reviewing z Acts Nos. anT and addressing any complaint by a person regarding service, 8 of 2019 s. 4f 5 3 of 2021n t o e s. 52 procedural or administrative matter arising in the course of nm administering tax laws by the Authority, the Commissioner er ov General or a staff of the Authority. 5 G2 [s. 28A] 0 ©2 1 Amended by Act No. 8 of 2019, s. 45. 306 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Appointment of 31.–(1) The Minister shall appoint a person with competent Tax Ombudsman Acts Nos. knowledge and experience in tax administration matters to be 8 of 2019 s. 45 a Tax Ombudsman. 3 of 2021 s. 53 (2) The Tax Ombudsman shall be in charge of and carry out . the functions of the Tax Ombudsman Service independently AG O and impartially without interference from any institution, of n agency or department of the Government or any other perso io isns. (3) Notwithstanding subsection (2), the Tax Ombuds rm pme an’s findings shall directly be submitted to the Min t oiust er as recommendations for the Minister’s directives. ith d w (4) The Tax Ombudsman shall hold office fbour te a renewable period of three years under such terms strdi ai nd conditions regarding remuneration as the Minister m oar d y determine. (5) The Minister shall prescribe regcuedu lations governing the conduct of Tax Ombudsman and mporoe dalities of recruiting staff and employees to perform Tax O bem r budsman Service. may [s. 28B] k oo Duties of Tax 32. In discharging his dhius bties the Tax Ombudsman shall- Ombudsman t Acts Nos. (a) review a co f rtm o plaint, and where necessary, resolve it 8 of 2019 s. 45 amicablyo t ph arough mediation or conciliation; 3 of 2021 s. 54 (b) act in N d.d ependently and impartially in handling comerpv e s laints; (c) tsf or ellow informal, fair and cost effective procedures in h l ri g handling complaints; Al a. i (d) provide information, training and awareness to n za taxpayers on tax ombudsman service, functions and Tan f procedures of making complaints; o en t (e) facilitate access by taxpayer to dispute resolution rnme processes within the Authority; and v G o (f) identify and review tax administrative issues related to 250 customer service, or procedures and behaviours which ©2 impact negatively on taxpayers. [s. 28C] 307 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Limitation of 33. The Tax Ombudsman shall not review- powers of tax Ombudsman (a) legislation or tax policy; Acts Nos. (b) Authority’s policy or practice save that which relates 8 of 2019 s. 45 3 of 2021 s. 55 to service, administrative or procedural matter with . respect to administration of tax laws; and AG O (c) tax decision or objection decision. of n [s. 28D io ss] rm i Confidentiality 34.–(1) The Tax Ombudsman and person acting on his beha e t lpf shall Act No. u 8 of 2019 s. 45 not disclose information of any kind that is obtained by o tho wir on behalf of the Tax Ombudsman’s or prepared from informa tetdion obtained u by or on behalf of the Tax Ombudsman, to the A ib sutrthority. (2) The provisions of section 21 of th e r Ad i o ct shall apply on the Tax Ombudsman including his offi d cecers, any person who u acts on his behalf and a person whrodp se complaints are being considered by the Tax Ombudsma rnee . (3) Notwithstanding subsectyi a obn (2), the Authority shall allow the Tax Ombudsman acceosks mto information in the possession o of the Authority which r b ise lates to the Tax Ombudsman’s powers h and duties under thtiso f At ct. r pa [s. 28E] . N o Protection of Tax 35. The prro d vevision of section 24 of the Tanzania Revenue Ombudsman se and his officers Authorit rye Act shall apply under this Part. Cap. 399 hts [s. 28F] Act No. ll r ig 8 of 2019 s. 45 . A Procedure for an ia z 36. The Minister may make Regulations to prescribe for the conducting an and handlinfg T procedure of conducting and handling complaints by the Tax complainntt oe s Ombudsman. Act No. 8 oefrn m v 2019 s. 45 [s. 28G] Go 5 02 PART V ©2 OFFICIAL COMMUNICATIONS AND DOCUMENTATION Official languages 37.–(1) The official languages for purposes of tax Act No. 3 of 2021 s. 56 administration shall be both Kiswahili and English. 308 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (2) Where any communication or document which is relevant in applying a tax law to a taxpayer is not in an official language, the Commissioner General may, in writing require the taxpayer to provide an official translation of the . communication or document. AG O (3) Where a taxpayer is required to submit an official of n translation of communication or document under subsectioissn io (1), the taxpayer shall submit the official translation withpien rm the time prescribed under section 53. ut thoi w [s. 29] ute d Forms and 38. The Commissioner General may pressctrr ibibe the forms notices i required under a tax law and he shall cau d osre such forms to be available to the public at offices of the ed u cAuthority and at such other locations and places or by sucphro o d ther medium as he may determine. e r e b may [s. 30] ok Authorised 39.–(1) A document iisss bu oed by the Commissioner General and defective documents under a tax law is suffif tch o iently authenticated if the name or title t of the Commissioanr p er General or of the authorised officer of the Authorityd i. s N-o (a) in tehrve e case of a paper document, printed, signed and es ss tramped; or (b ht ri)g in the case of an electronic document, imbedded in the All . document by way of electronic signature. nia za (2) A declaration made by a person under a tax law is n Ta sufficiently authenticated if it is duly signed by that person. f nt o (3) A document issued under a tax law is not invalid or me rn defective if- e ov (a) it is in substance and effect in conformity with the tax 5 G 02 law; and ©2 (b) the person to whom the document is addressed or applies is designated in the document according to common understanding. 309 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (4) Where a document issued by the Commissioner General under a tax law contains a defect that does not involve a dispute as to the interpretation of the tax law or facts involving a particular person, the Commissioner General may, for the . purposes of rectifying the defect, amend the document. G f O A [s. 31] n o ss io Paper documents 40.–(1) A paper document shall be considered to have b i rmeen filed with e Commissioner filed with the Commissioner General under a tax lawou tw phen- General (a) physically delivered to the office of the Authoitrh w ity; (b) sent by way of a registered post to anu teo dffice of the Authority; or ist rib (c) sent at any other place as the Com d ormissioner General may specify. d uc e (2) A document referred to in subrsoedp ction (1) shall be treated to have been received by the Co re bme missioner General- (a) in the case of service baym y fax or electronic mail, at the time the transmissi kn oo is sent; (b) in the case of sheisr bvice by handing to an officer of the t Authority orrt ol fe aving at a place, at the time of handing or leaving a o ;p (c) in the c. aNd se of service by registered post, at the time the dosceur vme ent is delivered or the Authority is informed tst hr eat the document awaits the Authority; ( h ld rig) in the case of other service by post ten days after Al ia. posting; and za n (e) in the case of other services by the post from an address an f T outside the United Republic, the time at which the o en t document would normally be delivered in the ordinary ern m course of post. Gov [s. 32] 02 5 ©2 Paper documents 41.–(1) A paper document is sufficiently served on a person by served by Commissioner the Commissioner General under a tax law if it is- General (a) handed to the person or, in the case of an entity, a manager of the entity; or 310 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) left at, or sent by post to the usual or last known place of abode, business, office, post office box or other address of the person including- (i) where the document is sent by registered post and . the person has been informed that the document OAG awaits the person, the post office; or n o f (ii) the address referred to in the person’s Taxpayesriois Identification Number. pe rm (2) A document shall be considered to have been orue tc eived in the following circumstances: ith d w (a) in the case of service by handing to a pe te bruson or leaving at a place, at the time of handing or ldeisa trvi ing; (b) in the case of service by registered r d opost, at the time the document is delivered or the c dpueerson is informed that the document awaits the peerps roon; (c) in the case of other servi r cbe by post to an address within the United Republic, mte any days after posting; and (d) in the case of othero so k b ervice by post to an address outside the United Repuisb th lic, the time at which the document would norma olfly be delivered in the ordinary course of post. pa rt o d. N e [s. 33] Electronic 42.–(1) Th r se vCommissioner General may establish and operate document system e an elehctts rronic system for filing and furnishing of documents and ig ll rservicing documents. ia. A(2) An electronic document is considered to be filed by a an nz person and received by the Commissioner General under a tax Ta of law when a document registration number is created by using en t the person’s authentication code. rnme (3) Subsection (2) shall not apply to a person who has ov G proved to the satisfaction of the Commissioner General that he 5 20 2 did not send the document or the document was sent without © his authority. (4) An electronic document is considered to be served on a person by the Commissioner General under a tax law when a document registration number is created and the document can be accessed by using the person’s authentication code. 311 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (5) The Commissioner General may authorise a printed document to be treated as a copy of an electronic document filed under subsection (2) or served under this subsection. (6) A court or tribunal shall accept a copy authorised under . subsection (5) as conclusive evidence of the nature and contents AG O of an electronic document, unless the contrary is proved. of [s. 34s]io n is ermp PART VI ut tho MAINTENANCE OF DOCUMENTS A i d wND e PROVISION OF INFORMATIOuNtib ist r (a) Maintenance of Docum oer ndts ed Maintenance of 43.–(1) Every taxable or liable persond uo schall, within the United documents Acts Nos. Republic, maintain documents i nre prpaper or electronic form 3 of 2021 s. 57 which- be 5 of 2022 s. 108 y 7 of 2023 s. 53 (a) contain informationk mto a be provided or filed with the Commissioner G ebon oeral under any tax law; (b) enable an accuf trha iste determination of tax payable under any tax lawa;r ta ond (c) can be p Nroe pscribed by the Commissioner General or by reguvla . edtions. r (2) Evreesr ey taxable person or a person liable to tax shall keep recorgd hsts and accounts in accordance with generally accepted accAlol rui nting principles and the requirements of a respective ntia . x law. za an (3) The documents referred to in subsections (1) and (2) f T t o shall be retained for a period of five years from the relevant men date or for a further period as prescribed in the tax law. ernv (4) Where a person- Go 5 (a) files an objection or appeal, all documents relevant to 02 ©2 the matter in dispute shall be retained until the matter is finally determined and the decision is executed; (b) makes an application to the Commissioner General, all documents relevant to the application shall be retained until the application is finally decided; 312 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (c) applies for a refund of tax, all documents relevant to calculation of the refund shall be retained until the refund is made; and (d) has received notice of an investigation or audit by the . Commissioner General, all documents relevant to OAG the investigation or audit shall be retained until the of n Commissioner General notifies the person in writinissg io that the investigation or audit is finalised. pe rm (5) The Commissioner General may, by notice in wruit o ting- (a) relieve a person from the obligation to ith w maintain d documents or the time for which the do te bcuuments are to be retained; or ist ri d (b) require a person to retain documde on r ts as prescribed in the notice. e du c (6) In this section, “relevant dat ro eep” means- (a) in the case of income tax b, et hr e end of the year of income for which the docum emnayt is relevant; (b) in the case of valueo oa kdded tax, the end of the prescribed accounting perihois b t d for which the document is relevant; and rt o f (c) in the caos pe a of other taxes, the last date on which the taxpaey N de. r is obliged to lodge a document with the Cosmer vmissioner General for which the document is re htsrelevant. (ll7 ri) g Every taxable or liable person who maintains dao. A i cuments in electronic form, shall maintain in the United an nz Republic a primary data server for storage of documents in of Ta electronic form. t en (8) The server referred to under subsection (7) shall be rnme accessible by the Commissioner General for purposes of tax ov G administration in the manner and time prescribed under 25 20 section 51. © (9) For the purposes of this section, “primary data server” means a physical, virtual or any other server which stores data that is created or collected by a taxable or liable person in the ordinary course of business. 313 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (10) The requirements of subsections (7), (8) and (9) shall come into effect on 1st January, 2024. [s. 35] Issuance of fiscal 44.–(1) A person who supplies goods, renders services or G. receipt A Act No. receives payment in respect of goods supplied or services O of 7 of 2023 s. 54 rendered shall issue fiscal receipt. ion iss(2) Notwithstanding subsection (1), the Commissieormner General may publish in the newspaper with wide ciroc p uut lation or any other public media issue a list of persons woi trh class of persons who are excluded from the requiremenutt eo df the use of fiscal device or issuance of fiscal receipt. tribis (3) A person who is excluded from i s d ors uing fiscal receipt shall issue manual receipt. d uc e (4) A person issuing the manual d prreoceipt shall enter or cause to be entered in the receipt and re b eduplicate copy the following particulars-: y ma (a) the date on which ot ohke payment is made; (b) full name and a b hdisdress of the person who sold the goods t or renderedr toh f t e services; (c) full desc a or piption of the goods sold or the services renderde. d N and a statement of the quality and value of the gosoedr vse or, the amount charged in respect of the services re tsr endered; (ld h rig) full name and address of the person to whom the goods Al ia. were sold or to whom the services were rendered; anz (e) Taxpayer Identification Number; and n f T a (f) such other particulars as the Commissioner General o en t may, by a notice, specify. ern m [s. 36] ov G 02 5 (b) Regular Provision of Information ©2 Tax return 45.–(1) A tax return to be filed by an individual shall declare that the return is complete and accurate and be signed by a person who made it. 314 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (2) A tax return to be filed by an entity shall be signed by- (a) in the case of the income tax, manager of the entity and a certified public accountant who is in public practice declaring that the return is complete and accurate; and . (b) in any other tax, a manager and declare that the return AG O is complete and accurate. f n o (3) Where- siois (a) a person becomes bankrupt or the company is wopeu rmnd- up or goes into liquidation; t ou (b) the Commissioner General has reasonable th d w girounds to believe that a person- bu te (i) is about to leave the United Repubtris lic indefinitely; (ii) intends to cease carrying on aocrt di d ivity in the United Republic; or uc e d (iii) has committed an offeenpc roe under a tax law; or (c) a person fails to mainta ibne radequate documentation as required by this Act, ay m the Commissioner Generoao k b l may require that person to file a tax return at earlier da tht ies than the date for filing a tax return. (4) The Commis f rt soioner General’s requirement shall be in writing and servoe pd a on the person specifying the period, part of a period ord o. N e ther events to be covered by the tax return and the date bye rs wv hich the return shall be filed. re hts [s. 37] l ri g l Electronic filing 46. Aia .–(1) Every taxpayer required to file return shall file the of tax returns Act No. za nreturn electronically on or before the due date as prescribed in n 5 of 2022 s. 1f 0T9a the specific tax law. nt o e (2) The Minister may prescribe the form and manner in rnme which the tax return shall be filed electronically. ov G (3) Notwithstanding subsection (1), the Commissioner 02 5 General may, by notice in writing and under special ©2 circumstances, permit a person to file a tax return manually or by any other means. [s. 37A] 315 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Assistance in 47.–(1) A person who prepares a tax return or an attachment preparing tax return to a tax return on behalf of another person shall sign the return or an attachment certifying that- (a) the person has examined the relevant documents of . that other person maintained under this Act; and G OA (b) to his knowledge, the return or attachment presents of n a true and fair view of the circumstances to which istiois relates. pe rm (2) Subsection (1) shall not apply to an employe t tho eu of the person obliged to file the tax return. i d w (3) Where a person who prepared a taxb u treeturn or an attachment under subsection (1) is not t dsiastrii sfied with the information contained in the documenotrs d relevant for the preparation of the return or an attacdh e ucment, the person shall furnish that other person with a stparoe tement in writing stating the reasons for his dissatisfactieo r b n and proceed to sign the return noting that the signat umraey is subject to such a statement. oo k b [s. 38] is th Extension of time 48.–(1) A person wrht o f is required to file a tax return under a tax to file tax return Act No. law may apply too pt ahe Commissioner General for an extension 3 of 2021 s. 58 of the time by .w Nd hich the return shall be filed. (2) The earvp e s plication under subsection (1) shall be in writing and be tsm r eade not less than fifteen days before the due date for filinl grig t hhe return. l ia. A(3) Upon the receipt of an application made under za nsubsection (1), the Commissioner General- n Ta (a) may extend the time upon which the return has to be t o f en filed; ern m (b) shall serve the person with written notice of his decision ov G on the application. 250 (4) The extension of time to file a return shall not exceed ©2 thirty days from the due date of filing the return. (5) The granting of an extension of time under this section shall not alter the date for payment of tax as specified in the tax law under which the return is filed. [s. 39] 316 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Failure to file tax 49.–(1) Where a person fails to file a tax return by the due date return on time stated by a tax law or as may be extended under section 48, the Commissioner General may use the power under this Act to appoint another person to prepare and file information. . (2) Any purported filing of a tax return after the due date OAG or in a manner other than that specified in the relevant tax law of n shall be ineffective. io iss (3) The Commissioner General shall make an assessm rm peent of the tax liability of the person as required by the tax law, inucto l uding by way of adjusted assessment, and for this purpo seithw may use d any information in the Commissioner Generbau tle’s possession including any information obtained under subisstrd ei ction (1) or (2). or d [s. 40] ceu Correction of tax 50.–(1) Where the Commissioner Gperno deral is not satisfied with a returns and other information tax return filed under a tax law, h bee s rehall use appropriate powers, Act No. including those in Subpart (c y m) aof this Part for acquiring further 2 of 2016 s. 54 information as is necessar k ooy in the issuance of an assessment, or for confirmation on itsh bh e tax payable, paid or to be paid in a t specified accountinrgt o p f eriod. (2) A tax retuor pn a which has been filed shall not be amended or corrected u N dn. less as specified under the relevant tax law. (3) Thse e er v Commissioner General may, in making an assessm e tse rnt or adjusted assessment, take into account any info rrimg h l ation received under subsection (1). l A ia. [s. 41] za n n f T a (c) Access to Information and Assets t o men Acecrenss to 51.–(1) The Commissioner General shall, without a prior oinvformation and Gassests notice, be granted free access to any premises, documents, 25 20 goods, vessels, vehicles, aircrafts or any other assets- © (a) in the case of a dwelling house or where a document or asset is located in a dwelling house- (i) between 9:00am and 6:00pm; and (ii) at other times as permitted by an order of a court; (b) in any other case, at any time. 317 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (2) The powers of the Commissioner General stipulated under subsection (1) may be delegated to a tax officer. (3) When exercising the power under subsection (1), the Commissioner General or tax officer may- . (a) make an extract or copy of any document to which AG O access is obtained; f n o (b) seize any document which affords evidence that- siois (i) may be material in determining the tax liabipliet rmy of any person; or t ou (ii) an offence has been committed under a itth w ax law; d (c) seize an asset to which access is obtainedu teb that contains or stores the document in any form; tri dis (d) where a document is not availadb ole r or a copy is not provided on request by a persdou cne having access to the document, seize an asset t ro eop which access is obtained under subsection (1) th a bet rthe Commissioner General or tax officer reasona ay bmly suspects contains or stores the document in any bfo orkm; (e) take samples o fth g iso ods; and (f) park, moorr t oo fr store, at any premises or place, any vehicle, aoi rpc araft, vessel or other equipment in use by the Comm. N edissioner General or a tax officer. (4) Any rv se document, asset or sample seized under subsection e (3), shhatlsl r be issued with an inventory of seized properties signed by tllh rie g Commissioner General or the tax officer and may be- ia. A(a) in the case of seized document retained for a period an nz required for the determination of the person’s tax f T a o liability or for any proceedings under a tax law; t en (b) in the case of seized asset retained for as long as is ern m necessary to obtain access to the document; or Gov (c) in the case of samples, retained and disposed of in the 5 20 2 manner directed by the Commissioner General. © (5) An authorised officer exercising power under this section may be assisted and accompanied by any employee of the Authority, expert appointed under section 18 or public officer required to assist under section 19. [s. 42] 318 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Possessor’s rights 52.–(1) A person who possesses any premise, place, document, and obligations goods, equipment, vessel, vehicle, aircraft or asset to which a tax officer seeks or has obtained access under this Part may require the tax officer to produce the authorisation. . (2) Where the tax officer fails to comply with a request under AG O subsection (1), the person may refuse the officer an access or of n require the tax officer to leave the premises or place to whic io issh the tax officer has obtained access on that occasion. pe rm (3) A person who possesses any premise, documenotu, t good, vessel, vehicle, aircraft or asset to which an exercisew i othf powers d under this Part refers, shall provide all reasonabblue te facilities and assistance for the effective exercise of the pdio trwis ers under this section. d o r (4) Where a person fails to comply wcedu ith subsection (3), the tax officer shall exercise the powerse sp rtoipulated under section 74 and apply for search warrant un r bdeer section 109. (5) A person who own sm aydocuments or assets retained pursuant to this Part mabyo, o kat his own expenses, examine the documents and make cios th pies or extracts of documents during regular office hours rut on f der the supervision as the Commissioner General may dete prao mine. (6) Where a. Ned document, asset or sample is lost or damaged as the resuervs lt of exercising the powers under this Act, the e Commhtiss rsioner General shall pay the owner of the document, assell tr i gor sample a reasonable compensation. . Aia [s. 43] za n n Notice to obft aTian 53.–(1) The Commissioner General may, by a notice in writing, informatito on Acts Noesn. require a person whether or not liable for tax- 8 o m efr n2020 s. 69 (a) to produce any information prescribed in the notice; o3v of 2021 s. 59 G (b) to attend at the time and place stated in the 02 5 notice for the purposes of being examined by the ©2 Commissioner General or by an officer authorised by the Commissioner General; or (c) to produce any document in his control during the examination. 319 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (2) A person to be examined under subsection (1)(b) is entitled to representation. (3) A notice under subsection (1) shall be served by hand to the person to whom it is directed or leaving it at the person’s . usual place of business or abode, or by any other means as the OAG Commissioner General may determine. of n (4) Information or document requested by tihseios Commissioner General under subsection (1) shaplel rmbe submitted within a period of fourteen days from theo ud t ate of service of the notice. ith d w (5) The Commissioner General may, uponu treb eceipt of an application, extend the time referred to in su t dbis eriction (4) where the applicant has shown sufficient caused, oa r nd such extention shall not be unreasonably withheld. ce du (6) A person who fails to submite pi rnoformation or documents within the time prescribed und ber r subsection (4) or (5) shall be precluded from using su mc ahy document or information as evidence at the stage of o ok bbojection or appeal. is [s. 44] of th rt Disclosure of 54.–(1) An entitoy p aengaged in the construction and extractive information on contracted industry shaldl. w N ithin thirty days from the date of executing services a contracts efro ver contracted or sub-contracted services disclose Acts Nos. re 2 of 2016 s. 55 to the ts Commissioner General the names  of all persons h 7 of 2023 s. 55 con g lt rri acted and sub-contracted in the course of performance l o A iaf. their duties or business or carrying out of any project. anz (2) For purposes of this section, the entity referred to under n f T a subsection (1) shall disclose names of the persons and nature nt o e of the sub contracted works together with the duration of ern m carrying out the works. ov G (3) An entity which fails to comply with the provisions of 250 this section shall be liable to a fine not exceeding 25% of the ©2 quantum payable under the project or a fine of not exceeding 4000 currency points whichever is greater. [s. 44A] 320 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Tax audit or 55.–(1) The Commissioner General may use powers conferred investigation on him under this Act, to audit or investigate a person’s tax affairs. (2) The Commissioner General may select a person to be . audited having regard to- AG O (a) that person’s history of compliance or non-compliance n o f with any tax law; io iss (b) the amount of tax payable by that person; rm pe (c) the class of business or other activity conductedou b t y that person; or with (d) any other matter that the Commissiuote d b ner General considers relevant for ensuring the codlilse trci tion of tax due. (3) Where a person has been auditedd o ro r investigated for any particular period, such audit or c d uin e vestigation shall not preclude that person from being auepd roited or investigated in the following period if there are re r abesonable grounds for auditing or investigating that person. ay m (4) The audit or invebsot oikgation may be conducted for the purpose of more than toh ins e tax law. rt o f [s. 45] o p a Registration and 56.–(1) A per N d.s on who establishes a storage facility with the monitoring of storage facility aim of keeprviese ng goods for business purposes shall register the Acts Nos. facility w reith the Commissioner General. 5 of 2022 s. 110 gh ts 7 of 2023 s. 56 (l2 ri) The owner of the storage facility registered under s A l iau. bsection (1) shall keep records of all stored goods and report anz to the Commissioner General on monthly basis in the manner n f T a prescribed by the Commissioner General. o en t (3) Where the Commissioner General satisfies himself that rnme a storage facility has not been registered as required or goods ov G have been kept without being reported as required under 02 5 subsection (2), the facility owner shall be liable to a penalty ©2 of 300 currency points and be responsible to pay any detected loss of revenue with respect to undisclosed goods, whether the goods are owned by the storage facility owner or not. 321 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (4) For purposes of this section- “storage facility” means warehouse, godown or any other storage facility, which is used to keep own or other persons’ goods for business purposes, provided that such . warehouse, godown or other facility is not part of a shop, AG O factory, industry or farm; and of n “owner” means a person who establishes or operates an io issd is in control of the facility and possession of the stpoe rmage facility or a person to whom the storage facility hauts o been leased or sub-let to. with ted bu [s. 45A] i dis tr PART VII or ed PRIMARY TAX LIA c rod uBLITY rep Assessment and 57.–(1) An assessment of tayx b e shall be made by way of self-assessment self-assessment where a perk smo an liable to pay tax is obliged to file a tax return. o bo (2) A person othe is fr t hthan the Commissioner General shall not adjust any asseasrts oment. o p [s. 46] d. N ve Jeorpady 58.–(1) Theers Commissioner General may make a jeopardy assessment e Act No. assessmhtse rnt of tax payable or has become payable by a person 4 of 2017 s. 50 undll erir g the respective tax law- A ia. (a) whether or not the person is required to file a tax return, n nz a in the circumstances specified in section 45(3); and f T a o (b) in any other case, where a person fails to file a tax return nt e on time. rnme (2) The Commissioner General shall use best judgment and v G o available information in making a jeopardy assessment. 02 5 2 (3) A jeopardy assessment may be valid for such period © or periods or with respect to such events or subject matter as the Commissioner General may specify in the notice of assessment. 322 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (4) A jeopardy assessment shall not, unless the Commissioner General specifies otherwise in the notice of assessment, relieve a person of the obligation to file a tax return or report a taxable event as required by a tax law. . (5) The filing of tax return shall not affect a jeopardy G OA assessment. f n o (6) Where a jeopardy assessment covers the period io iossr events covered by a self-assessment of a person with repsep rmect to the same tax, any tax paid with respect to the joeuo t pardy assessment shall be credited against tax payable witithh w respect d to the self-assessment. bu te (7) A jeopardy assessment shall be deemi dis tred to be made under the tax law which charges the pers ord n or subject matter assessed. e du c ro re p [s. 47] be Adjusted 59.–(1) The Commissioner Gen ayeral may adjust an assessment to assessment ensure the taxpayer is liable m o kfor the correct amount of tax in the o circumstances to which t b thi sh e assessment refers. (2) Where, in th eo f t opinion of the Commissioner General, a taxpayer has fa iplae rd to pay any of the tax payable by him by reason of- No d. (a) his e efrvailure to keep proper books of accounts, records so s re documents as required under a tax law, or the ht rig incorrectness of the books, records or documents; or A(lla. b) his failure to make, or delay in making any return ni za required under a tax law or the incorrectness or n f T a inadequacy of any return, nt o the Commissioner General may assess the tax due and any e rnm interest payable on that tax both of which shall be due for e Gov payment within one month of the date of the assessment, 02 5 unless a longer period is allowed by the Commissioner ©2 General. (3) The Commissioner General shall use best judgment and available information in making an adjusted assessment. 323 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (4) The powers of the Commissioner General to adjust an assessment expires five years from- (a) in the case of a self-assessment, the due date for filing the tax return that gives rise to the assessment; . (b) in the case of any other original assessment, the date AG O on which the Commissioner General serves notice of of n assessment on the taxpayer; and siois (c) in the case of an adjusted assessment, the date refpee rmred to in paragraph (a) or (b) of the original asseust o sment that is adjusted. th d w i (5) Notwithstanding subsection (4), there shuateb ll be no time limit on the Commissioner General to adjusdtis a trin assessment in the case of fraud, wilful neglect or seriousor d omission by or on behalf of the taxpayer. ce du (6) The Commissioner Geneprre aol shall not adjust an assessment that has been adju bset er d or reduced pursuant to a decision of the Board or ay Tmribunal under the Tax Revenue Cap. 408 Appeals Act or an order obfo othk e court of competent jurisdiction. (7) An adjusted ass teh isss ment shall cease to have effect to the extent to which it isrt ao fdjusted. (8) An adjuste a od p assessment shall be deemed to be made under the tax law wh . edic Nh charges the person or subject matter assessed. (9) In rv s e this section, “original assessment” means an e assessmhtse rnt that is not an adjusted assessment. ll r ig [s. 48] . A Notice of an6 ia0.–(1) Where the Commissioner General makes an assessment z Tan assessment under a tax law, he shall serve a written notice of nt of the assessment on the taxpayer in a manner provided for e nm under sections 41 and 42. r ov e (2) In addition to anything prescribed by the respective tax 5 G2 law, a notice of assessment shall state- 20© (a) the name of the taxpayer and the Taxpayer Identification Number; (b) the Commissioner General’s assessment of the tax payable by the taxpayer for the period, event or matter to which the assessment relates and the amount remaining to be paid; 324 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (c) the reasons why the Commissioner General has made the assessment; (d) the date by which the tax shall be paid; and (e) the time, place and manner of objecting the assessment. G. [s. 49] A f O ion o PART VIII iss DISPUTE RESOLUTION pe rm ut tho Tax decisions 61.–(1) The Commissioner General may, subject tod ws iubsection Act No. ute 8 of 2020 s. 70 (2), make any tax decision including assessibment or other r decision or omission on a matter left tdois t the discretion, judgement, direction, opinion, approval,d oe cor nsent, satisfaction or determination of the Commission c duer General under a tax o law that directly affects a person. r re p (2) An assessment or decisio bney made under subsection (1) shall not include- k m a (a) a practice note or bao d o ecision or omission to issue, refuse or revoke a prfa s tch itice note; (b) a decision aortr o omission that affects a person as a tax officer oNro epmployee or agent of the Authority; (c) the c d. voempoundment of an offence under any tax law; or (d) arnesy e rmatter decided under any tax law on account of htsa greement, consent or admission. g A(ll3 ri) A tax decision under this section is considered to have nbiae . en made- nz a a (a) in the case of self-assessment, on the due date of filing T t o f the tax return; men (b) in the case of other assessments, when the notice of ve rn assessment is served on the taxpayer; and o 5 G (c) in the case of any other tax decision- 02 ©2 (i) where the tax law specifies a time by which the Commissioner General is to make the decision; or (ii) when the Commissioner General serves the affected person with written notice of the decision. 325 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (4) For purposes of this Act, the following information or documents shall be considered as conclusive evidence that a tax decision has been made and the decision is correct: (a) in the case of self-assessment, the tax return that causes the assessment or a document under the hand of the AG. O Commissioner General purporting to be a copy of the of tax return; sio n is (b) in the case of other assessments, the notipcee rm of assessment or a document under the hand t o uo f the Commissioner General purporting to be a c th woi py of the d notice; and te bu (c) in the case of any other tax decsitsr i di ion, a written notice of the decision under ort d he hand of the Commissioner General or a ce d u document under the hand of the Commissioner Gproe eneral purporting to be a memorandum of the dec r y b iesion. ma [s. 50] ok bo Objection to tax 62.–(1) A person who is aggrieved by a tax decision made by decisions th Acts Nos. the Commissioner G ofrt e neral may object the decision by filing 2 of 2016 s. 56 an objection to toh pe a Commissioner General within thirty days 8 of 2020 s. 71 3 of 2021 s. 60 from the dated o. Nf service of the tax decision. (2) A rve seperson who has reasonable ground to warrant extensio nrets of time to file an objection against a tax decision may gh l riapply for an extension of time. A l ia. (3) Where the Commissioner General is satisfied by the n za reason stated in the application made under subsection (2), n f T a he shall grant the extension of time and serve the notice of his nt o e decision to the applicant. ern m (4) An objection to a tax decision shall be in writing stating ov G the grounds upon which it is made. 250 (5) An objection to a tax decision shall be accompanied by ©2 relevant document or information which the tax payer intends to rely upon to support his objection. (6) The information or document which the tax payer intends to rely upon shall be submitted at the time of lodging the notice of objection. 326 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (7) Notwithstanding subsection (1), an objection to a tax decision on assessment or notice of liability to pay tax shall not be admitted unless the taxpayer has, within a period of thirty days from the date of service of tax decision, paid the amount . of tax which is not in dispute or one third of the assessed tax OAG decision whichever amount is greater. of n (8) Where the Commissioner General is satisfied that theisrse io exist good reasons warranting reduction or waiver, hep em rmay waive the amount to be paid under subsection (5) or oauc t cept a lesser amount. with d (9) Where a taxpayer files an objection and mte buakes payment under subsection (5), the liability to pay the rde ri ismt aining assessed tax shall be suspended until the objectiond i so r fi nally determined. (10) In this section, “tax not in dis ce dpuute” with respect to an assessment or any tax decision mea ro epns- (a) the amount that ough bte rto be charged where the assessment or a tax de y mcaision is amended in accordance with the objectionb;o oaknd (b) the whole of du tht iys or any tax assessed on imports. (11) Where ther t toa f xpayer fails to pay the amount stated under subsectioon p a(7) within the time provided therein, the assessed tax d N ede . cision shall be confirmed as final tax assessment v Cap. 408 in terms ofe rs section 17(2)(a) of the Tax Revenue Appeals Act. e (12) s rht Where the Commissioner General has reasonable caulsl rei g to believe that the objector intends to permanently leave tiah. e A United Republic, the tax payable under subsection (7) shall an nz be the whole of the assessed tax. Ta of [s. 51] en t Deecrins mions on 63.–(1) The Commissioner General may, upon admission ovbjection G o Acts Nos. of an objection pursuant to section 62, make a decision by 02 5 4 of 2017 s. 51 determining the objection or call for any evidence or any other ©2 8 of 2020 s. 72 information as may appear necessary for the determination of the objection and may, in that respect- (a) amend the assessment or other tax decisions in accordance with the objection and any further evidence that has been received; or 327 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) refuse to amend the assessment or other tax decisions. (2) Where the Commissioner General agrees to amend the assessment or other tax decisions in accordance with the objection, he shall serve a notice of the final assessment or . other tax decisions to the objector. OAG (3) Where the Commissioner General- of n (a) intends to amend the assessment or other tax decisioinssios in accordance with the objection and any fupre rtmher evidence; or ou t (b) decides to refuse to amend the assessment orit h w other tax d decisions, te bu he shall serve the objector with a notice settidn i isgtr out the reasons for the intention or decision. d o r (4) The objector shall, within thirdtuy c edays from the receipt of the notice pursuant to subsectioepn ro (3), make submission in writing to the Commissioner r Gbeeneral on his agreement or disagreement with the amend y m aed assessment or the refusal. (5) The Commissionerb oG okeneral may, after the receipt of the submissions by the obj s the ictor made pursuant to subsection (4)- (a) determine trht oe f objection in the light of the amended assessmeon pt a or refusal and any submission made by the objectdo. e rN; or (b) deterrvs mine the objection partially in accordance with st hr e ht e submission by the objector, and rigll proceed to issue a notice of final determination of oab. Ajection. an i nz (6) The provisions of section 53(1) relating to production a of T of documents shall apply to submission of evidence or nt e information referred to in subsection (1). ern m (7) The evidence or information referred to in subsection v G o (1) shall be submitted within the time prescribed by the 25 20 Commissioner General in the notice: © Provided that, the time prescribed by the Commissioner General shall not exceed thirty days from the date of service of the notice. 328 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (8) The Commissioner General may, upon receipt of sufficient reasons adduced by the objector, extend the time for submission of evidence or information for a period not exceeding seven days from the date of service of the notice of . extention. G OA (9) Where the objector fails to submit the document or of n information required by the Commissioner General in termisss io of subsection (1) within the time prescribed or extendedp, es rmuch objector shall not be permitted to rely on such docuomu t ent or information at the time of hearing of an appeal. th d w i (10) The Commissioner General shall te bdu etermine an objection to a tax decision within six monthdsis tfrirom the date of admission of the notice of objection. or d (11) Where the Commissioner Gednu ceeral fails to determine the objection within the time prepsroe cribed under subsection (10), the tax assessment or tax b e dr ecision shall be treated as confirmed and the objector ms ahyall have the right to appeal to Cap. 408 the Board in accordance bwo oikth the Tax Revenue Appeals Act. th is [s. 52] f rt o Appeal against 64.–(1) A persoon p awho is aggrieved by an objection decision objection N decisions or other decisd.ion or omission of the Commissioner General under this rPvese art may appeal to the Board in accordance with Cap. 408 the protv ir e s sions of the Tax Revenue Appeals Act. (l2 ri)g hSubsection (1) shall also apply to a decision or omission l ma. A i ade under the customs law. Act No. n za (3) For purposes of this section, the Board shall be 1 of 2005 an [E.A.C.M.A o]f T deemed to be the Tax Appeals Tribunal established under nte section 231 of the East African Community Customs ern m Management Act. Gov [s. 53] 02 5 ©2 329 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] PART IX PAYMENT AND RECOVERY OF TAX (a) Regular Payment of Tax . Time for paying 65. A taxpayer shall pay any tax- OAG tax of Acts Nos. (a) at the time specified in the tax law under which the tax on 4 of 2017 s. 52 is charged; i iss 7 of 2017 s. 45 (b) in the case of tax payable- erm p (i) on a jeopardy assessment under section 5th8o u, ton the date specified in the notice of assessmweid nt served under section 60; or te rib u (ii) on an adjusted assessment unde rd iss tection 59, within thirty days from the date on ored which the person assessed is served with c dau notice of assessment o under section 60; pr re (c) in the case of interest ayn bd e penalties under Part XI, on the date specified ink mt ahe notice of assessment served under section 92; o bo (d) with respect fttoh i samount required to be paid to the Commissioanrt eor General under section 73(9), 78(2), 80(2) or N (o5 p), on the date set out in the notice; (e) with rde.ve spect to a liability under section 76, at the time r threes e tax is payable by the entity; (f)g h tsw ith respect to amounts required to be paid to the All r i Commissioner General under section 77(3) or (4), . nia seven days after the sale from which the amount is set nz a a aside or the failure to set aside, respectively; of T t (g) with respect to amount required to be paid to the men Commissioner General under section 79(7), on the rn ve date provided for in the security; or o 5 G (h) with respect to additional profits tax payable under 02 ©2 any arrangement or agreement, shall be paid to the Commissioner General on the due date specified by the arrangement or agreement, or in the absence of such specified due date, as the Commissioner General shall by notice in writing direct. [s. 54] 330 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Extension of time 66.–(1) A taxpayer may, in writing, apply to the Commissioner for paying tax General for an extension of time to pay tax under a tax law. (2) The Commissioner General may, upon the receipt of the application and where good cause is shown, extend the date on . which tax or part of tax shall be paid. G OA (3) The Commissioner General shall serve the applicant of n with written notice of the decision on the application. io iss (4) Where an extension is granted by permittinpge rmthe taxpayer to pay tax by instalments and the taxpaoyu te r has defaulted in paying any of the instalments, the wh it owleh balance d of the tax outstanding plus the interest shall bbeuc teome payable immediately. ri ist or d d [s. 55] uc e Manner and place 67.–(1) A taxpayer shall pay tax- rod of paying tax p Act No. (a) at any tax office; re be 3 of 2021 s. 61 (b) at any bank approveyd ma for that purpose by the Commissioner Ge onoe kral; (c) through a mobihlies bphone payment system; or t (d) in the case ortf o fp roperty rate, at the time of payment for electricityo :p a Provided tdh. Nat, the property rate in respect of rateable properties rve s enot connected with electricity, shall be paid in accordatsn r ece with subsection (1)(a), (b) or (c) of this section. (le ri)g h in any other manner prescribed by the Commissioner A l ia. General. za n (2) Where a taxpayer pays tax in accordance with subsection n f T a (1), he shall notify the tax office where the taxpayer is registered t o en of the payment: m ern Provided that, the requirements of this subsection shall not Gov apply to a taxpayer who pays property rate under subsection 02 5 (1)(d). ©2 (3) A taxpayer shall pay tax in one of the following forms: (a) where the payment is made at a tax office in cash; or 331 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) where the payment is made at a bank- (i) in cash; (ii) by cheque; or (iii) by direct account transfer. . (4) The payment of tax shall be considered to be ineffective AG O where the cheque tendered to the bank is dishonoured. of n [s. 5 io mis6s] r Order of paying 68. Where a taxpayer has tax payable under one or e t pmore tax u tax laws and makes payment less than the total ouithw sotanding amount, the Commissioner General may, notwithtesd tanding the u system established under section 69, determisntre ib the amount of tax to be considered as the paid amount. di d o r ce [s. 57] duo Taxpayer’s 69.–(1) The Commissioner Gener r raelp may establish and operate accounts an electronic system of taxpayer b’sey account. (2) The system may be e a ks tmablished and operated separately or as part of the electronsi cb o do ocument system established under section 42. i of th (3) For the bett rt pear carrying out of the purpose of this section, the Commissio. Nn oe r General may make rules prescribing- (a) whe d rnve the tax becomes payable; (b) t e hree s tax paid; and (ci)g h tsother matters similar to matters described under ll r A section 42. nia . a [s. 58] an z f T (b) Recovery of Tax from Taxpayer t o Suit fomre unnpaid 70. Where- taxernv (a) payment of any tax has not been made on or before the Go 5 due date; or 02 ©2 (b) a notice which has been served to any person under section 92 has not been complied with, the tax due and payable by such person may be recovered as a debt due to the Government in any proceeding before a court of competent jurisdiction. [s. 59] 332 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Security for 71.–(1) Withholding tax, including any assets acquired by the withholding tax withholding agent, may be traced from assets or amounts- (a) held in trust for the Government of the United Republic; (b) not the subject of attachment in respect of a debt or . liability of the agent; and G OA (c) not forming part of the estate in liquidation or of n bankruptcy proceedings of the agent. io iss (2) The Commissioner General shall have a first r pcela mim over the tax or assets before any distribution in liquid t oaution or bankruptcy of a withholding agent is made. ith d w ute [s. 60] trib Charge over 72.–(1) Where a taxpayer fails to pay r dt iasx on time, the assets Commissioner General may create a chda roce ge in favour of the Government over assets owned by thadturo taxpayer. (2) The Commissioner Gene rea pl shall be considered to e have created the charge if he saeyr bves the taxpayer with a notice in writing specifying theok mtaxpayer’s name and Taxpayer Identification Number,i st bh oe assets charged, the extent of the charge, the tax to whicf htho the charge relates and details regarding the Commissionera rGt p eneral’s power of sale under section 73. (3) The assetNso. of a taxpayer shall be charged to the extent of the unpaid trvaex d, interest accruing with respect to that tax under section 8 re7 s eand any costs of charge and sale. (4 ts i)g hA charge created under subsection (2) shall not have r effAel. cl t until- niaa (a) where an interest in land or buildings is charged, the an z T Commissioner General files an application to register of nt the charge under subsection (6); and me n (b) in any other case, the notice creating the charge is er ov served on the taxpayer. 5 G2 (5) A charge shall be released when the taxpayer pays 0 ©2 in full the amounts referred under subsection (3) to the Commissioner General. (6) Where the Commissioner General creates a charge over an interest in land or buildings, the Registrar of Titles shall, without fee, register the charge on the title of the interest in land or buildings. 333 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (7) Where a charge over an interest in land or buildings is released, the Registrar of Titles shall, within thirty days and without fee, remove the entry of the charge from the title of the interest in land or buildings. . (8) Any transaction by the Commissioner General under AG O this section shall be exempted from stamp duty and any other f n o transaction taxes. io iss (9) The Commissioner General may serve on a taxpaeyrp emr a notice in writing- t ou (a) specifying any costs of charge and sale with th w irespect to d assets of the taxpayer incurred by the bCu toe mmissioner General prior to the date of service; a ri dins td (b) requiring the taxpayer to payd os r uch costs to the Commissioner General by th e deu c date specified in the notice. rep ro e [s. 61] ay b m Sale of charged 73.–(1) The Commissione k oro General shall serve a taxpayer with assets written notice of intenhist ibon to sell charged assets owned by t such taxpayer. f rt o (2) The noticeo ps aerved under subsection (1) may accompany a notice referre. Nd d to under section 78 and it shall specify- (a) the e se r vtaxpayer’s name and Taxpayer Identification tsN r eumber; (b ri)g h l the charged assets, the Commissioner General’s Al ia. intention to sell those assets and the proposed method n za and timing of sale; and n f T a (c) in the case of tangible assets that the Commissioner nt o e General intends to take possession of, the manner in ern m which and place at which the possession will take place. ov G (3) In exercising his powers under subsection (1), the 02 5 Commissioner General- ©2 (a) may exercise such powers directly or through an authorised agent; 334 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) shall serve the person with a notice prior to taking possession; (c) may, for the purpose of taking possession with the assistance of the police enter any premises or place . described in the notice; G OA (d) shall, at the time of taking possession, provide the of n taxpayer with an inventory of assets seized; and siois (e) in the case of movable assets, may store the assets,p aet rm the cost of the taxpayer, at any place that the Commoius t sioner General considers appropriate. ith d w (4) The Commissioner General shall, abftue ter serving a taxpayer with a notice under subsection (1),s tr i di sell the charged assets by public auction. r d o (5) The sale under subsection (4) shdau clle not take place before- (a) in the case of an interest i r enp oland or buildings, thirty days after taking possess bioe nr ; (b) in the case of perish ma abyle goods, one day after taking possession; k bo o (c) in the case wheisr th e charged assets are tangible assets other than arts os fets referred to under paragraph (a) and (b), fourtoe pe an days after taking possession; and (d) in anyed o . Nther case, ten days after the service of the notice un rv sdeer subsection (1). (6) Ths r e ht e proceeds of sale shall be used to pay- (a ri)gll the costs of charge and sale of the assets sold; A ia. (b) the outstanding tax and interest accrued with respect n nz a to that tax under section 87; and f T a o (c) any other unpaid tax. nt e (7) The Commissioner General shall, after disbursing ern m proceeds for sale pursuant to subsection (6), serve the taxpayer ov G with a written notice stating the manner in which the sale 25 20 proceeds were applied. © (8) Where there is any balance of money after making payment under subsection (6), such balance shall be paid to the taxpayer. 335 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (9) Where the sale proceeds are insufficient to pay in full the costs of charge and sale, the tax due and interest accrued with respect to that tax, the Commissioner General may proceed to collect the insufficiency with fresh actions under this Part or G. Subpart (c). OA (10) This section shall not be construed to restrict the of n exercise of any rights that the Commissioner General has ov io isesr a security created under section 71 or 72. ermp (11) The activities of the Commissioner Generaolu t under this section shall be exempted from stamp duty an d itahw ny other d transaction taxes. ute trib dis [s. 62] or Restraint of 74.–(1) Where a person fails to pay tax ocnedu time and such person person is likely to flee from the United Repprou dblic, the Commissioner General may, by notice in writingbe o rer any other means of official communication to the Directory ma of Immigration Services, order the Director of Immigratoio kn Services to prevent that person from leaving the United b his Republic. t (2) The Directorr to of f Immigration Services shall, on receiving the notice, preveon pt a the person from leaving the United Republic for a period ofd .f Nourteen days from the date the notice is served. (3) Thsee r vCeommissioner General shall, where the person pays the rets tax or arranges for payment in a manner satisfactory to hl imig h r , withdraw a notice issued under subsection (1). l a. A i (4) The High Court may, on application by the Commissioner anz General, extend the period referred under subsection (2). n f T a [s. 63] nt o e Resrtnrmaint of assets 75.–(1) The Commissioner General may, subject to Acet No. ov subsection (2)- 5 G 4 of 2017 s. 53 02 (a) restrain the goods, vehicle, vessel or any other asset; ©2 (b) restrain and search any premises, place, vehicle, vessel or any other asset which he believes the goods, vessel or vehicle are located; (c) mark, lock up or seal any building, room, place, receptacles or item of plant in any factory, exercisable goods, or materials in a factory; and 336 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (d) use reasonable force for the purposes of paragraphs (a) and (b). (2) The powers of the Commissioner General under subsection (1) shall be exercised if the Commissioner General . is satisfied that- OAG (a) the value added tax has not been paid in respect of the n o f supply or import of goods; siois (b) a vehicle contains any fuel on which road and fueple rtmolls has not been paid; ou t (c) transit charges have not been paid with re th wsi pect to a d foreign vehicle; bu te (d) motor vehicle registration or transfedri st trai x has not been paid with respect to a vehicle; or d (e) section 44(1) or a provision ofc edu any tax law has been breached; or proe Cap. 147 (f) any provision of the Ex c r biese (Management and Tariff) Act has been breache md a wy ith respect to excisable goods. (3) The Commissione ok bro General may exercise the powers referred to under subs is tehction (1) in conjunction with any other powers of the Comrmt oi fssioner General granted under this Act. (4) Where thoe p aCommissioner General has restrained an asset under s . N eudbsection (1), he shall- (a) ser rv svee a written notice to the possessor of the asset; or (b) tsi e h nr the absence of the possessor, leave the notice at the ig ll r premises or place where the restraining takes place. A ia. (5) The notice shall- n nz a (a) identify and list the assets restrained; of Ta (b) state that the assets have been restrained under this en t section and the reason for the restraint; and ern m (c) set out the conditions for release and terms for disposal ov G of any assets seized. 25 20 (6) The Commissioner General may restrain an asset for a © period sufficient to raise a jeopardy or adjusted assessment and exercise the powers under sections 77 and 78. (7) Where there is no person who, within the period referred to under subsection (6), has proved to the satisfaction of the Commissioner General that he owns assets referred 337 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] under subsection (1)(a), the Commissioner General may treat the assets as charged assets and sell them in accordance with section 73. [s. 64] . (c) Recovery from Third Parties OAG of Liability of 76.–(1) Subject to subsection (2), where an entity fails to pay ta n sxio managers of is entities on time, a manager or a person who was the manager ofe rtmhat Acts Nos. entity during the time of accurence of the default shall be p u t jointly 4 of 2018 s. 64 o 5 of 2022 s. 111 and severally liable with the entity for payment of the it w thax. (2) The provisions of subsection (1) shall apuptel dy where the default which occurred was due to fraud as isttri isbhall be proved in a court of law. d d o r (3) Where a person pays tax under uscuebsection (1)- (a) that person may recover the pproa dyment from such entity; e (b) for the purposes of pa r rbeagraph (a), the person may retain out of any assemtsa yof the entity in or coming into the possession of tohoe k person an amount not exceeding the payment; atnds bhi (c) no claim martyo fb e made against that person by the entity or any otoh pe ar person with respect to the retention. N ed . [s. 65] erv Receivers 77.–(1)s rA es person who has been appointed to be a receiver shall nhot tify the Commissioner General of his appointment in wriltl rig . A ing within fourteen days from being appointed or taking anz piaossession of an asset situated in the United Republic. n Ta (2) The Commissioner General may serve a receiver with ofnt a notice in writing specifying an amount that appears to be me rn sufficient to provide for any tax due or that will become due by veo the taxpayer whose assets come into the receiver’s possession. 25 G (3) After receiving a notice under subsection (2), a receiver- 0 ©2 (a) shall sell sufficient of the assets that come into the receiver’s possession under the receivership to set aside, after payment of any debts having priority over the tax referred to in the notice, the amount notified by the Commissioner General under that subsection; and 338 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) is liable to pay to the Commissioner General on account of the taxpayer’s tax liability the amount set aside. (4) The receiver shall, to the extent that he fails to set aside an amount as required by subsection (3), be personally liable to . pay to the Commissioner General on account of the taxpayer’s AG O tax liability the amount that should have been set aside but n o f may recover any amount paid from the taxpayer. io iss (5) For purposes of this section- ermp “receiver” means any person who, with respect to aunt o asset situated in the United Republic, is- with d (a) a liquidator of an entity; te bu (b) a receiver appointed out of court or byi satr i d court in respect of an asset or entity; d o r (c) a trustee for a bankrupt person;cedu (d) a mortgagee in possession; proe (e) an executor or administr baet ror of a deceased individual’s estate; or may (f) conducting the affbao oirks of an incapacitated individual. thi s [s. 66] ofrt Third party 78.–(1) Where o ap a taxpayer fails to pay tax on time, the debtors and guarantors Commissionedr. NGeneral may serve on the third party debtor who owes mervs oeney to that taxpayer a notice in writing requiring that petrss ro e n to pay the money to the Commissioner General. (l2 ri)g hThe third party debtor shall, upon the receipt of the Al n iao. tice under subsection (1), pay the money equivalent to anz the amount of tax due to the Commissioner General on the Tan f account of the taxpayer’s tax liability and on the date specified o en t in the notice. rnme (3) The date specified in the notice shall not be before- v G o (a) the date the money becomes payable to the taxpayer or 250 is held on behalf of the taxpayer; or ©2 (b) the date the third party debtor is served with the notice. (4) The Commissioner General shall serve the taxpayer with a copy of the notice after service of the notice on the third party debtor. 339 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (5) Amounts payable to the Commissioner General by a third party debtor under subsection (2) or by a guarantor under a security shall be treated as tax and, once due, may be recovered as tax. . (6) The following shall be treated as money owed to a AG taxpayer: of O n (a) money currently owing or that may subsequent io mislsy become owing to the taxpayer; r pe (b) money held or that may subsequently be held fourt o or on account of the taxpayer; ith d w (c) money held or that may subsequentblyu t e be held on account of a third person for paymentt rtidis o the taxpayer; and r d o (d) money held by a person who hdaus c eauthority from a third person to pay the money to r e pth oe taxpayer. e r b [s. 67] may Compliance with 79.–(1) A third party doeob k tor or guarantor who pays the notice or security Commissioner General sp bhi ursuant to section 78 shall be treated t as having acted withrt ot f he authority of the taxpayer. (2) A notice s peao rved under section 78 shall cease to have effect once the. tNd ax referred to is paid or otherwise satisfied. (3) Whse e errve a third party debtor who is served with a notice under s re tse ction 78 is unable to comply with the notice by reason of la rcigl kh of money owing to, or held for the taxpayer, such third Al paa. i rty debtor shall notify the Commissioner General on his n za inability to pay. n f T a (4) The notice under subsection (3) shall be- o en t (a) in writing setting out the reasons for the inability; and m ern (b) filed with the Commissioner General within seven Gov days from the notice issued under section 78 after the 250 third party debtor becomes aware of the inability. ©2 (5) The Commissioner General may, upon the receipt of a notice by a third party debtor, accept the notification and cancel or amend the notice under section 78 or reject the notice of the third party debtor. 340 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (6) The notice filed by a third party debtor under this section shall have no effect unless the Commissioner General cancels or amends the third party debtor notice issued under section 78. . (7) Where a third party debtor fails to pay an amount of tax OAG specified in a notice within thirty days of the date- n o f (a) of service of such notice in him; or iss io (b) on which any money comes into his hands or bec rm poemes due by him to his tax debtor whichever even t out is the latter and the payer has- ith d w (i) not given a notification under su te bbusection (3) of this section; or ri dis t (ii) given such notification whichd oh r as been rejected by the Commissioner Generdaul c,e the provisions of this Act relatin r egp oto recovery of tax shall apply to the collection and rec boev rery of such amount as if it were tax due and payable b ym atyhe third party debtor, the due date for the payment of w ok bohich was the date upon which such amount should have b the isen paid to the Commissioner General under this section.rt o f o p a [s. 68] d. N Agents of 80.–(1) Wshere vere- non-residents (a) tsa r enon-resident taxpayer fails to pay tax on time; or (bi)g hl r the Commissioner General has good reasons to believe l a. A i that a non-resident taxpayer shall not pay tax on time, za n the Commissioner General may, by notice in writing, an f T require the agent who is in possession of an asset owned nt o e by the non-resident taxpayer to pay tax on behalf of that m ern taxpayer. ov G (2) An agent shall, without prejudice to subsection (1), be 02 5 required to pay tax up to the market value of the asset but not ©2 exceeding the amount of the taxpayer’s unpaid tax. (3) For purposes of this section- (a) a taxpayer who charters an aircraft or ship under a charter for period exceeding three years shall be treated as the owner of the aircraft or ship during that period; and 341 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) the captain of any aircraft or ship shall be treated as being in possession of the aircraft or ship. (4) The Commissioner General may, by notice in writing, require a resident partnership or a resident partner to pay tax . due or that may become due by a non-resident partner. G OA (5) The resident partnership and any resident partner shall f n o be jointly and severally liable to pay the tax up to the amou io isnst of the non-resident partner’s share in the net assets opef r mthe partnership. ou t (6) Where a person makes payment to the Comimth w issioner d General pursuant to a notice issued under subbus teection (1) or (4) that- i dis tr (a) person may recover the payment forro d m the taxpayer or non-resident partner; ce du (b) person may for the purposesep o rof paragraph (a), retain out of any assets of the taxpa byee rr or non-resident partner in or coming into the po ay mssession of the person an amount not exceeding the poakbo yment; and (c) taxpayer, non- tr heissident partner or any other person, may not ma f rkt oe a claim against the person with respect to the retoe pn ation. N ed . [s. 69] erv s r es t PART X l ri gh l A REMISSION AND REFUND OF TAX nia . Remission of nz a a 81. Where the Commissioner General is satisfied that there is interest and f T penalty t o good cause to remit interest or penalty imposed under any tax Acts Noesnm . law, he may remit the whole or part of the interest or penalty 2 ofr n2016 s. 57 o4v o ef 2017 s. 54 payable by that person. 25 G4 of 2018 s. 65 [s. 70] 20 3 of 2021 s. 62 © Application for 82.–(1) A person may apply to the Commissioner General for tax refund Acts Nos. refund of tax paid in excess. 4 of 2017 s. 55 (2) The application for refund shall be in writing, 7 of 2023 s. 57 indicating the correct tax calculation and be supported by the documentary evidence to support the claim. 342 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (3) An application under this section shall, except where a tax law provides otherwise, be made within a period not exceeding three years from the date of payment of tax in excess or the date a tax decision or other decision giving rise to a tax . overpayment is made. G f O A [s. 71] n o ss io Decision on 83.–(1) The Commissioner General shall consider and mea i rkme a application refund decision on an application made under section 8 t o2u w p ithin ninety days from the date of the receipt of the appliciath w tion. (2) The Commissioner General may make th d ute appropriate decision without limiting his discretion- str ib i (a) where he is of the opinion that th oer dapplicant has not paid excess tax, reject the applic d ucaetion; (b) where he is not satisfied thpraot d the applicant has paid excess tax- e r e b (i) request for fumrtahy er information as may be reasonable in ooor k der to make a final decision on the application;s obr f th i (ii) refundr tt ohe money paid in the excess subject to the apploi cp aation; or (c) whered h. Ne is satisfied that the applicant has paid excess taxs,e rt voe refund to the extent to which the Commissioner re tsG eneral is satisfied. (3 h l ri)g The Commissioner General shall serve the applicant w.i A l ia th a written notice of the refund decision within the time anz prescribed in subsection (1). an f T (4) Where the Commissioner General makes a decision nt o e under subsection (2)(b), the Commissioner General shall rnme reconsider the application after the applicant provides the ov G information or where the applicant rejects the offer. 250 (5) The Commissioner General shall serve the applicant ©2 with notice of that decision within thirty days of receiving the information requested under subsection (2). [s. 72] 343 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Payment of tax 84.–(1) Where the Commissioner General is satisfied that the refund taxpayer has paid excess tax, he shall- (a) apply the excess to offset any tax due from the taxpayer under any tax law; and . (b) refund the balance, within fourteen days of making the AG decision. of O n (2) Where the Commissioner General accepts a taxpayeisrs’s io refund application in part, he shall refund the amount accepteerdm. (3) Where the Commissioner General refunds an amuot p o unt of tax to a person, he shall be liable to pay that person w ai tnh interest d in accordance with the provisions of the relevanbut t etax law. (4) The interest under this section shall bdeis tcrialculated at the statutory rate and shall be for the periodd corommencing on the date the refund decision is issued anddu ceending on the day the refund is made. ro ep (5) The interest paid by a pers oen rb under a tax law with respect to tax which has not been pa imd a yon time shall, to the extent that the tax is found to have bbeo oekn paid, be refunded to that person with any interest at th eth irsa te stipulated under subsection (4). (6) The Commirst soi foner General shall maintain a separate bank account and p ao ensure that there are sufficient funds in that account for tehde . N purposes of this section. rv se [s. 73] ts re Short levy or 85.–l r(ig1 h) Where any duty or tax has been short-levied or erroneous refund Al Act No. eiar.roneously refunded, a person who ought to have paid the 3 of 2021 s. 63 n za amount short-levied or to whom the refund has erroneously Tan f been made, shall, on demand by the Commissioner General, o en t pay the amount short-levied or repay the amount erroneously m ern refunded. Gov (2) The amount referred under subsection (1) may be 02 5 recovered as if it were a tax in relation to which the amount ©2 was short-levied or erroneously refunded: Provided that, the Commissioner General shall not make any such demand after five years from the date of such short levy or erroneous refund, unless such short levy or erroneous 344 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] refund had been caused by fraud on the part of the person who has to pay the amount short-levied or to whom the refund was erroneously made. [s. 74] . AG PART XI f O on o INTEREST, PENALTIES AND OFFENCES i miss er (a) Interest t p tho u Interest for under 86.–(1) The amount of interest that an installment i d wpayer shall estimating tax payable pay for each period under subsection (4), shailblu tbe e calculated Act No. at the statutory rate compounded month dlyis, t r applied to the 4 of 2017 s. 56 excess of- d o r e (a) the total amount of income thdaut c would have been paid by way of installments durinpgrore the year of income to the start of the period had e yt hbe person’s estimate or revised estimate equaled thek cmoa rrect amount; over (b) the amount of incoo b me tax paid by installments during the year of incfo thm is e to the start of the period. (2) For purpo o asret s of calculating interest payable under subsection (1), oa pN ny extension granted under section 48 or 66 or suspe d. vnesion under section 62(7) shall not be taken in consideraetieo r s n. r (3) hThts is section applies where an instalment payer’s estimate or rlle ri g A vised estimate of income tax payable for a year of income Cap. 332 nuian . der section 113 of the Income Tax Act is less than eighty a an z percent of the correct amount. of T t (4) Where this section applies, the instalment payer shall be n me liable for interest for each month or part of a month from the ve rn date the first instalment for the year of income is payable until o 5 G the due date by which the person shall file a return of income for 022 Cap. 332 the year of income under section 117(1) of the Income Tax Act. © (5) For purposes of this section, “correct amount” means the income tax payable by the payer for the year of income Cap. 332 under section 4(1)(a) and (b) of the Income Tax Act. [s. 75] 345 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Interest for failing 87.–(1) Where any amount of tax imposed under a tax law to pay tax Act No. remains unpaid after the due date prescribed in a tax law, the 4 of 2017 s. 57 interest at the statutory rate compounded monthly shall be payable to the Commissioner General. . (2) For purposes of calculating interest payable under OAG subsection (1), any extension granted under section 48 or 66 of n or suspension under section 62(7) shall not be applied. io iss (3) A withholding agent may not recover from a withhoerp lmdee an interest payable by the agent in respect of a failure too uc to mply Cap. 332 with section 104, 105 or 106 of the Income Tax Act. ith d w (4) Interest payable under this section or ubnud teer any other tax law shall not be affected or waived for tdhise tr ireason of delay due to court proceedings or any othero r d dispute resolution process. e du c ep ro [s. 76] r be (b) Peaym nalties ok bo Penalty for failing 88.–(1) A person whoh fisf t ails to maintain proper documents as to maintain t o documents required by a tax laarw is liable for a penalty for each month or part of a monthN od puring which the failure continues. (2) The pevneda . lty shall, in the case of an individual, be 1 currency point or, i er ens the case of a body corporate be 10 currency points. r (3) tsTh h e Commissioner General shall determine tax attAr ig lil br utable to a period on a just and reasonable basis including na iap. portioning tax assessed with respect to a larger period or by za an reference to taxable events happening within the period. T nt of [s. 77] me Peenranlty for failing 89.–(1) A person who fails to file a tax return or pay tax on otov file tax return G due date as required by a tax law is liable for a penalty for each 5 20 2 month or part of a month during which the failure continues. © (2) The penalty is- (a) two point five percent of the amount of tax assessable with respect to the tax return less tax paid by the start of the period towards that amount; and 346 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) in the case of an individual, 5 currency points or in the case of a body corporate, 15 currency points, whichever is higher. (3) The penalty applies separately for a failure to file a tax . return that is an estimate or provisional amount and a failure OAG to file a tax return incorporating the final amount. n o f [s. 78s]ios rm i Penalty for 90.–(1) A person is liable for a penalty if he- t p e making false u or misleading (a) makes a statement to a tax officer which wiist h ofalse or statements misleading in a material particular; ted Act No. ibu 3 of 2021 s. 64 (b) omits to include in the statement mades ttro the tax officer, any matter or thing without whi di ocrh the statement is misleading in a material particucleadr; or u (c) entered into controlled transacrtoidp ons or series of controlled transactions and fails to rdee etermine the income and expenditure resulting froym ba the transaction in a manner that is inconsistent woikth m arms length principle. o (2) The penalty shall his b be- (a) where the s f t t toatement or omission is made without reasonable aer p xcuse, fifty percent of the tax shortfall; (b) whered t. h Neo statement or omission is made knowingly or reckrlveee ssly, seventy five percent of the tax shortfall; or (c) sfor ers a person who has contravened subsection (1)(c), igh t r one hundred percent of the tax shortfall. All a. (3) Notwithstanding subsection (2), the penalty shall be- i za n (a) increased by ten percent for the second or subsequent an f T application of this section to the person; and t on (b) reduced by ten percent if the person voluntarily e rnm discloses the statement prior to its discovery by the tax ve Go officer or the next tax audit of the person. 5 02 (4) A statement shall be considered to have been made to ©2 the tax officer in the performance of duties under a tax law when it is made orally, in writing or in any other form and it includes a statement made- (a) in any document or information required to be filed under a tax law; 347 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) in a document furnished to the tax officer otherwise than under a tax law; (c) in an answer to a question put to a person by the tax officer; or . (d) to another person with the knowledge or reasonable OAG expectation that the statement shall be passed to the of n tax officer. iss io (5) A person who contravenes section 24(3) or 25(5) esrhmp all be considered to have made a false or misleading stateomu t ent to a tax officer. th w i ute d trib [s. 79] is Penalty for aiding 91. A person who aids, abets, counsels oor rd induces another and abetting person to commit an offence on convictieoduc n shall be liable for a penalty equal to one hundred percepnrot d of the tax shortfall. e r e b [s. 80] y ma (c) Assessment k o o f Interest and Penalties s b th i Assessment of 92.–(1) The Commrt ios fsioner General shall assess the interest interest and penalties and penalties for a o wp hich a person is liable under this Part. Acts No. (2) Liabil . N eidty for interest and penalties under this Part 4 of 2017 s. 58 with respesecrt v to a particular failure or statement is calculated separahtte e s lry for each section of this Part. (ll3 ri) g The imposition of interest and penalties under this Part is. Aia in addition to any other tax imposed by a tax law and does an nz not relieve any person from liability to criminal proceedings. a of T (4) Where a particular failure or statement incurs interest nte or a penalty both under this Act and any other tax law, the ern m Commissioner General shall assess the person under a tax law ov G with the higher rate of interest or penalty. 5 20 2 (5) Where an assessment is made under this section, the © Commissioner General shall serve a written notice of the assessment, which may be incorporated with another notice of assessment under a tax law on the person, stating- (a) the name of the person and the person’s Taxpayer Identification Number; 348 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) the amount of the interest or penalty assessed by the Commissioner General; (c) the manner in which the assessment is calculated; (d) the reasons for making the assessment; . (e) the date on which the interest or penalties shall be paid; and AG O (f) the time, place and manner of objecting to the f n o assessment. io iss (6) An assessment made under this section is an orpieg rimnal assessment for the purposes of section 59. ut tho w i [s. 81] ted bu (d) Offences ist ri d d o r e Offence for failing 93. Notwithstanding the provisions c douf a tax law relating to to comply with p tax law offence, a person who fails to comrpe lryo with a provision of a tax Act No. law commits an offence and on ceo y b nviction shall be liable- 5 of 2022 s. 112 (a) where the failure re a k smults or, if undetected may have resulted in an u o bnoderpayment of tax in an amount exceeding 50 c is f uthrrency points, to a fine of not less than 20 currencayrt opoints and not more than 50 currency points, oro pN to imprisonment for a term of not more than d. six mveonths, or to both; and (b) in saere ny other case, to a fine of not less than 10 currency r htspoints and not more than 20 currency points. ll r ig A [s. 82] . nia Offence for failinnzg a 94. A person who fails to pay any tax on, or before the date on to pay tax a of T which the tax is payable commits an offence and on conviction nt e shall be liable- rnme (a) where the failure is to pay tax in excess of 50 currency v G o points, to a fine of not less than 25 currency points and 02 5 2 not more than 100 currency points or imprisonment © for a term of not less than three months and not more than one year, or to both; and 349 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) in any other case, to a fine of not less than 10 currency points and not more than 25 currency points or imprisonment for a term of not less than one month and not more than three months, or to both. G. [s. 83] OA of Offence for 95.–(1) A person who, in any matter relating to any tax laws sse n stio making or using false or out under Part A of the First Schedule to the Tanzania Reveermn iue misleading Authority Act- p ut statements or o documents (a) makes any entry of any building, room, pla wcie th, or item Cap. 399 of a plant, which is false or incorrect int eadu ny material Act No. particular; trib2 of 2016 s. 58 is (b) makes or causes to be made any decorl d aration, certificate, application, return, account, or d u ocether document, which is false or incorrect in any mparot derial particular; (c) when required to answbeer r e any question put to that person by an officer, rmeafyu ses to answer such question or makes any false or oi onkcorrect statement in reply thereto; (d) is in any way inhviso blved in any fraudulent evasion of the t payment of f rat no y tax; (e) obtains aon py a remission, rebate or refund of tax which he is not de.n Ntitled to obtain; (f) maekrs eves any false statement or false representation in r tso r eder to obtain any remission, rebate, refund of tax or h l ri g any tax benefit; Al ia. (g) acquires possession of, keeps, conceals, removes or in anz any way deals with, any excisable goods or any taxable an f T goods which have been manufactured or supplied nt o e without payment of the full tax; ern m (h) counterfeits or in any way falsifies or uses when Gov counterfeited or in any way falsified, any document 5 02 required or issued by or used for the purpose of the tax; ©2 (i) omits or fails to make or cause to be made any declaration, certificate, application, return, account, or other documents, which is true or correct in any material particular; or 350 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (j) acquires, possesses, keeps or conceals, or in any way deals with, any fiscal receipt or fiscal document which is false or incorrect in any material particular, commits an offence and on conviction shall be liable for . payment of twice of the amount of the tax evaded. OAG (2) A person who in any matter relating to any tax law- n o f (a) makes a statement to a tax officer which is false osriois misleading in material particular; or ermp (b) omits to include in the statement made to a taxou o t fficer, any matter or thing without which the st ith watement is d misleading in material particular, bu te commits an offence. tri dis (3) The person who commits an offen r dc oe under this section on conviction shall be liable,- e du c (a) where the statement or oepm roission is made without reasonable excuse- e r b (i) and, if the inaccu mraacyy of the statement is undetected, and may have ok b oresulted in an underpayment of tax in an amoun t th eisxceeding 50 currency points, to a fine of not lessr t toh f an 25 currency points and not more than 100 c puao rrency points or imprisonment for a term of ndo. e tN less than three months and not more than one ervs year, or to both; and ts( r e h ii) in any other case, to a fine of not less than 10 ll r ig currency point and not more than 25 currency ia. A points or imprisonment for a term of not less than an nz one month and not more than three months, or to f T a o both; or en t (b) where the statement or omission is made knowingly or rnme recklessly- v G o (i) and, if the inaccuracy of the statement is undetected, 02 5 2 and may have resulted in an underpayment of tax in © an amount exceeding 50 currency points, to a fine of not less than 50 currency points and not more than 200 currency points or imprisonment for a term of not less than one year and not more than two years, or to both; and 351 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (ii) in any other case, to a fine of not less than 20 currency point and not more than 50 currency points or imprisonment for a term of not less than six months and not more than one year, or to both. . (4) For purposes of determining whether or not a statement AG O is made to a tax officer, or when such statement is considered f n o to be false or misleading in material particular, the provisio io insss of section 90(4) and (5) shall apply. rm ut pe o [s. 84] ith w Offence for 96.–(1) A person who impedes or attempts tote dimpede the impeding tax u administration administration of a tax law commits an offenctreibis . Act No. (2) The person who commits an offencoer dunder this section 3 of 2021 s. 65 on conviction shall be liable- d uc e (a) where the offence involves prfor daud or undue force, to a fine of twice the amobeu rnet sought to be evaded or recovered or 200 currmean y cy points, whichever is greater or imprisonment fooor k a term of not less than two years and not more thhias nb four years, or to both; and t (b) in any otherr f t coase, to a fine of not less than 10 currency points ano dp a not more than 200 currency points or imprisdo. Nnment for a term of not more than two years, or steor v eboth. (3) I e tsn r this section, “impeding administration of a tax law” incllu ridg hes- l a. A i (a) where a tax officer is acting in the performance of duties za n under a tax law, assaulting, obstructing or attempting Tan f to assault or obstruct the officer or interfering with any o en t asset used by the officer; rnme (b) failing to comply with a notice under section 53 or v G o answer truthfully when being interrogated under 25 20 section 109; © (c) evading or recovering tax; (d) fraudulently dealing with an asset charged under section 72 so as to prevent seizure; (e) recovering an asset seized under section 51, 73, 75 or 109; 352 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (f) interfering with any lock, seal, mark, fastening or other security used to restrain an asset under section 75 or 109; (g) with the intent of evading any obligation under a tax law, knowingly dealing in any way with a document . or asset that is or contains or produces information, AG O including by way of measurement, that is false or of n misleading in a material particular; io iss (h) disguising, warning or hiding a person with the ipne rtment that a liability, obligation or arrest of any perso t onu under a tax law is evaded; th d w i (i) committing any offence under a tax te bluaw where the person has already been convicte tri dids of an offence under a tax law or had an offence r d coompounded under section 106; ce du (j) refusal to produce documenept rso; (k) destroying, damaging, bceu rtting away, casting adrift, defacy or interfering waiy m th any instrument or a property used for the purpo ok bose of tax authority; (l) failure to p is trhoduce official translation of the communicartt ioo f n or document which is in a language other than p ao official language; (m) failureed .t No maintain a primary data server in the United Repeurvs blic as required by section 43; (n) tsu r e h ses, keeps, or provides, any false or unjust scales, ig ll r weighing or measuring instruments, weights or ia. A measures; or an nz (o) by any means prevents or contrives to prevent, the of Ta proper officer from taking a just and true account or nt e making proper examination of any excisable goods or ern m materials. ov G [s. 85] 25 ©20 Offence for failing 97.–(1) A person who- to use fiscal device (a) fails to acquire and use fiscal device upon Acts Nos. commencement of business operations or expiry of the 2 of 2016 s. 59 5 of 2022 s. 113 period specified by the Commissioner; 7 of 2023 s. 58 353 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) fails to issue fiscal receipt at the time of supply of goods, rendering service or receiving payment for goods or service; (c) issues a fiscal receipt that is false or incorrect in any . material particular; G OA (d) uses fiscal device in any manner that misleads the of n system or the Commissioner; or io ss (e) tempers with or causes fiscal device to work improperem i p rly or in a manner that does not give a correct uot o r true document, ith d w commits an offence and on conviction shall be libaub tele to a fine of twenty percent of the value of goods sold or sdeisr trvi ice rendered or 100 currency points, whichever is greatedr o r r to imprisonment for a term not exceeding three years odru cteo both. (2) The provisions of subsectiopnroe (1) shall not apply to a person who is exempted by any btea rx law to acquire or use fiscal device. ay m (3) Where any amounbot o kof tax has been evaded in any of the offence referred to t hi ins subsection (1), a person involved on conviction shall be rlti oa fble in addition to a fine under subsection (1), a fine twice toh pe a amount of tax evaded or imprisonment for a term not exc.e Ned eding three years. (4) A pseer vrson who fails to demand or report a denial of e issuanhctse r of a fiscal receipt upon payment or receipt of goods or serv ig ll irce, commits an offence and on conviction shall be liable to a A ia .fine of twenty percent of the tax evaded or 2 currency points, n nz a whichever is greater. a of T [s. 86] t en Off m eernces by 98.–(1) A person authorised by the Authority to perform any oavuthorised and Gunauthorised function or carry on any duty under a tax law commits an 02 5 persons offence where that person- ©2 Act No. 5 of 2022 s. 114 (a) directly or indirectly asks for or takes in connection with the person’s duties, any payment or reward or promise or security for any such payment or reward, not being a payment or reward that the person is lawfully entitled to receive; or 354 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) agrees to, permits, conceals, connives at or acquiesces in any act or thing whereby the Government is or may be defrauded with respect to any matter under a tax law, including the payment of tax. . (2) A person who is not authorised by the Authority OAG commits an offence if that person- n o f (a) collects or attempts to collect an amount of tax payabislse io under a tax law or an amount which that ppee rmson describes as tax; or ut o (b) makes representations with the intent to makith w e another d person to believe that, that person is a ta te bux officer. (3) A person who commits an offence undsetr i di r subsection (1) or (2) on conviction shall be liable to a fineo ro d f not less than 200 currency points or to imprisonment fodur c ea term of not less than twelve months and not more than fipvroe e years, or to both. (4) A person who contravenes b es erction 25 commits an offence and on conviction shall be l mia aby le to a fine not exceeding 100 currency points or to imp k bor oisonment for a term not exceeding one year, or to both. th is (5) A person wh oofrt is required to be registered or licensed under a tax law oto p aperform any function and fails to apply for such registratdi. N e on or licensing within the period prescribed by law or earvs s may be notified by the Commissioner General e commhittss r an offence and on conviction shall be liable to a fine notl l eri gxceeding 500 currency points or to imprisonment for a t A iae.rm not exceeding one year or to both. za n [s. 87] Tan of Offenceesn b t y 99.–(1) Where an entity has committed an offence under a tax entitimes ern law, every person who is a manager of the entity at the time of ov G commission of that offence shall be treated to have committed 5 02 that offence. ©2 (2) Subsection (1) shall not apply where the manager has exercised the degree of care, diligence, and skill that would have been exercised by a reasonable person in preventing the commission of that offence. [s. 88] 355 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Obligation to pay 100. Payment of fine on conviction by the court or tax not affected by conviction or compoundment of an offence under this Act, shall not affect compoundment an obligation of a person to pay such tax. Act No. 2 of 2016 s. 60 [s. 88A] . AG General penalty 101.–(1) A person who commits an offence under this Act for of O Act No. 2 of 2016 s. 60 which no specific penalty is provided, on conviction shall bssei o n liable to a fine of not less than 200 currency points ande rmn iot more than 300 currency points or to imprisonment fooru ta p term not exceeding three years or to both. ith w (2) Where any amount of tax evaded in any otefdu the offence referred to in subsection (1), a person intvriobis lved shall on conviction be liable, in addition to a fine u onr dder subsection (1), a fine twice the amount of tax evadedu coer d imprisonment for a term not exceeding three years. pro d re be [s. 88B] y a Offence for aiding 102. A person who aids, akb mo ets, counsels or induces another or abetting person to commit an io ffb o s ence under a tax law commits an offence and on conv iocf t thion shall be liable- t (a) where the r poa riginal offence involves a statement of the kind pdr. e Nsocribed in section 95(1) and, if the inaccuracy of tehrve e statement were undetected, may have resulted inre ss an underpayment of tax to a fine of not less than t rig h 100 currency points and not more than 200 currency All . points, or to imprisonment for a term of not less than ia za n one year and not more than two years, or to both; n of Ta (b) where the original offence involves inducing an nt authorised person to commit an offence under section e rnm 98, to a fine of not less than 200 currency points, or to ov e imprisonment for a term of not less than twelve months G 02 5 and not more than five years, or to both; or ©2 (c) in any other case, to a fine of not less than 50 currency points and not more than 100 currency points, or to imprisonment for a term of not less than six months and not more than one year, or to both. [s. 89] 356 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] VAT offence 103.–(1) A person commits an offence if that person- (a) fails to apply for registration as required under the Cap. 148 Value Added Tax Act; (b) fails to notify the Commissioner General of ceasing . to be liable for value added tax as required under the G OA Cap. 148 Value Added Tax Act; n o f (c) fails to notify the Commissioner General of a change io isisn circumstances as required under the Value Adde rm pde Tax Act; ut Cap. 148 o (d) fails to notify the Commissioner General of th wtihe change d in interest or ownership of property te buor control of business by reason of death, bank i dirs tur ptcy, winding- up or other legal process that vesdt os r in another person interest or ownership of propedrut cye as required under the Cap. 148 Value Added Tax Act; proe (e) fails to notify the Comm bies rsioner General of a transfer Cap. 148 as required under the y m V a alue Added Tax Act; or (f) holds himself outb oa osk a taxable person under the Value Cap. 148 Added Tax Act s t,h iwhere that person is not. (2) The person w f rt hoo commits an offence under this section on conviction sha plao l be liable- (a) where .t Ned he failure or holding out is made knowingly or errs evcklessly, to a fine of not less than 100 currency tsp r e h oints and not more than 200 currency points or to g ll r i imprisonment for a term of not less than one year and . Aia not more than two years, or to both; or n nz a (b) in any other case, to a fine of not less than 50 currency a of T points and not more than 100 currency points or to t en imprisonment for a term of not less than one month ern m and not more than three months, or to both. ov G [s. 90] 25 ©20 Stamp duty 104.–(1) A person commits an offence if that person- offences (a) draws, signs or deals in any manner with any instrument, bill of exchange, cheque or promissory note that has not been duly stamped; 357 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) votes or attempts to vote under any proxy not duly stamped; (c) issues any share warrant not duly stamped; (d) fails to cancel a stamp as required under the Stamp . Cap. 189 Duty Act; G OA (e) executes or assists in the preparation of an instrument n o f Cap. 189 that breaches the requirements of the Stamp Duty Acists; io (f) fails to give a receipt that is properly stamp rm peed as Cap. 189 required under the Stamp Duty Act; ut o (g) is a person appointed to sell stamps who ditih w sobeys a d lawful direction given by the Commissiboun teer General; (h) is not a person appointed to sell stam t dips sri but the person sells or offers for sale, other thand bo ry way of surrender to a stamp duty officer, any stamuced p other than adhesive stamps each of the value of fiproe fty cents or less; or (i) fails to comply with th be rterms of any composition Cap. 189 agreement made und meray the Stamp Duty Act. (2) The person who coomo k b mits an offence under this section on conviction shall be thli isa ble- (a) where the rat co ftion or failure is made knowingly or recklessly a o, p to a fine of not less than 100 currency pointesd . aNnd not more than 200 currency points or impervs risonment for a term of not less than one year and re htsnot more than two years, or to both; or (llb ri) g in any other case, to a fine of not less than 20 currency A ia. points and not more than 50 currency points or an nz imprisonment for a term of not less than one month f T a o and not more than three months, or to both. nt [s. 91] rnm e e G oEvxcise duty 105.–(1) A person who, contrary to the provisions of the Excise 5 offences 20 2 Act No. (Management and Tariff) Act- © 5 of 2022 s. 115 (a) manufactures any excisable goods without being Cap. 147 licensed by the licensing authority; 358 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) does not abide with any of the condition in a licence imposed on him or breaches any of the licence conditions given to him; (c) does not obey a suspension or revocation of his licence . by the Commissioner together with any condition OAG thereof; of n (d) fails to keep records with respect to manufacturises i,o storage and delivery of excisable goods at his factoper rym or place of work in the prescribed manner; t ou (e) denatures spirits for sale without being licith w ensed by d the licensing authority and adopting te btuhe prescribed formula; ri dis t (f) fails to make entry or declarationd, obrefore commencing manufacture of excisable godou cdes, of each building, room, place, machinery ore p reoquipment, item of plant for the manufacture, pre bpea rration for sale or storage of excisable goods; ay m (g) makes use of any boukbo ilding, room, place, machinery or equipment or it teh ims of plant for manufacture, preparation for sale or srt oo frage of excisable goods without a valid entry; a o p (h) makes N ed . use of a building, room, place, machinery or equseirp v ment or item of manufacture, preparation for sale e htso rr storage of excisable goods for purpose other than ll r ig that declared in the approved entry; or A ia. (i) effects alteration in shape, position, or capacity of a an nz building, room, place of manufacture or preparation a of T for sale or storage of excisable goods without prior en t permission of the Commissioner, ern m commits an offence and on conviction, shall be liable to a fine ov G not exceeding 330 currency points or to imprisonment for a 02 5 2 term not exceeding three years or to both. © (2) Where a person who commits an offence under subsection (1) is a subsequent offender, such person on conviction shall be liable to a fine of not less than 330 currency 359 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] points but not exceeding 3500 currency points or to imprisonment for a term of not less than five years but not exceeding twenty years or to both. (3) In addition to the penalty provided for under subsection . (1) or (2), the court may issue an order for forfeiture of AG O any plant, excisable goods or materials connected to the of n commission of the offence. siois [s.p e9 r1mA] ut o Compounding of 106.–(1) Where a person commits an offence unidther a tax offences w Act No. law, the Commissioner General may compounudte d the offence 2 of 2016 s. 61 and may order a person to pay the fine that iswtr iobuld have been paid had such person been prosecuted an odr d convicted for the offence or order forfeiture of any gooducse drelated to the offence or to both. pro d (2) The Commissioner Genbeer rael shall not compound an offence- ay m (a) unless the person a k odo mits in writing that the person has committed the hoisff bence and accepts the proposed terms t of compoun f rdt oment; (b) in respecot p aof conduct of a transaction referred to in sectiond. N98; or (c) aftseerr v ceourt proceedings commence with respect to the tso rff eence unless the consent of the Director of Public ighl r Prosecutions is obtained. l a. A i (3) The Commissioner General’s order- an (a) shall be in writing and specify- an z f T (i) the offence committed; o en t (ii) the sum of money to be paid; m ern (iii) any asset forfeited; and v G o (iv) the date for payment of the money and surrender 02 5 of the asset; ©2 (b) shall be attached with the written submission referred to in paragraph (a) of subsection (2); (c) shall be served on the person who committed the offence; (d) shall be final and not be subject to appeal; and 360 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (e) may be enforced in the same manner as an order of the High Court for the payment of the amount and delivery of any asset stated in the order. (4) Where the Commissioner General compounds an . offence under this section, a person whose offence is OAG compounded shall not be liable for prosecution for that offence. of [s. 92s]io n mis er Repealed 107. [Repealed by Act No. 3 of 2021 s. 66.] p ou t ith w [s. 92A] ute d PART XII rib dis t TAX PROCEEDINGd oS r uc e d Multiple 108.–(1) The proceedings to recopvreoe r tax or prosecution of proceedings e r Act No. a person under one provision bof a tax law does not restrict 2 of 2016 s. 62 simultaneous or separate pro a mceyedings to recover the same tax or to prosecute a person ubon odk er a different provision of that law or a provision of a diff tehr ise nt tax law. (2) Notwithstandrt ion f g the provisions of tax law, a person may be convicted or fio np aed for more than one offence with respect to same course . eodf Nconduct or omission. (3) Wh rv sere two or more provisions which create an offence e apply htos rt the same part of a course of conduct or omission of a perlsl ori gn, the adjudicator may choose under which provision the p A iae. rson is to be convicted or fined. an nz (4) In any criminal proceeding under this Act or any other f T a o tax law any document, statement or a copy of or extract from nt e any document or statement, relating to the affairs of any person ern m that has been seized or obtained by the Commissioner General ov G shall be admissible in evidence. 25 20 (5) A document, statement or copy of or extract referred to © in subsection (4) shall be admissible irrespective of whether any person was- (a) induced to provide or make it; or (b) led to believe that criminal proceedings would not be instituted. 361 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (6) A witness on behalf of the prosecution shall not be compelled to disclose the fact that he received any information or document relating to any tax matter or the nature of the information or document or the name of the person who gave . that information or document. OAG (7) Where a person is charged for an offence under this of n Act which is similar to an offence in any other tax law, tih io sse provisions of the tax law related to criminal proceedingsp es rhmall apply mutatis mutandis with the provisions of this Act.ut ith o w [s. 93] d ute Power of search, 109.–(1) A tax officer authorised to search, sesitrz ibe or arrest may seizure and arrest i apply to a magistrate for an order to arrest o ra d person. (2) The application under subsectioenduc (1), shall state the reasons which make an authorisedp rtoa dx officer to believe that a person- re be (a) has committed an offemnyc a e under a tax law; (b) will abscond beforoeo t k he person is charged or stand trial for an offence u b hnisder a tax law; t (c) will destroy, f rt otamper or otherwise dispose of evidence of an offen pcao e under a tax law; or (d) has in dp. Nossession any good to which any offence under a tsa e exrv law has been committed or full duty has not been p raets id as required by a tax law. (3 h l ri)g The magistrate may, after being satisfied that the l siai.t Auation represents a serious risk to the collection of tax or the anz administration of justice, make an order authorising the tax an f T officer, to be accompanied by the police officer, to- t o en (a) enter any premises or place and restrain assets that may ern m reasonably provide evidence that an offence has been ov G committed under a tax law; 5 02 (b) restrain and search any premises, place, vehicle or ©2 other asset on or in which the tax officer believes on reasonable grounds there is such evidence; 362 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (c) interrogate and search or cause to be interrogated and searched a person who the tax officer believes on reasonable grounds has committed an offence under a tax law or to be in possession of assets mentioned in . paragraph (a); OAG (d) arrest a person who the tax officer believes on reasonable of n grounds has committed an offence under a tax law; anissd io (e) use reasonable force for the purposes of the precpeed rming paragraphs including by way of breaking ionut t o any premises, place or asset that may reasonablityh w contain d evidence referred to in paragraph (a). te bu (4) Upon restraining an asset under subsde ri isct tion (3), the tax officer shall- or d (a) serve a written notice on the pdoscseu essor of the asset and, where there is more than opnroe e possessor, service on a single possessor is suffic ibeen rt; or (b) where no possessor i sm aayvailable, leave the notice at the premises or place wooh k ere the restraining takes place. (5) The notice shall-his b t (a) identify andr f t loist the assets restrained; (b) state the oa ps asets which have been restrained under this sectiond.e Nand the reason for the restraint; and (c) sets eoru v t the terms for release, including any as to security re htsrequired, and terms for disposal of any assets seized. (ll6 ri) g A tax officer arresting a person shall immediately take tah. i aAt person to the nearest police station. an nz (7) A person shall be searched by another person of the Ta of same sex. t en (8) A tax officer may exercise any of the powers granted by ern m a magistrate under this section in conjunction with any other v G o of his powers granted under this Act. 25 20 [s. 94] © Search without 110.–(1) An authorised officer may, without a warrant, exercise warrant Act No. the powers referred under section 109 where- 4 of 2017 s. 60 (a) the owner or person in control of the premises consented in writing; or 363 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (b) he is on reasonable grounds satisfied that- (i) there may be an imminent removal or destruction of relevant material likely to be found on the premises; or . (ii) the delay in obtaining a warrant would defeat the OAG object of the search and seizure. n o f (2) The authorised officer shall, before carrying out tihsse io search, inform the owner or person in control of the prem rm peises- (a) that the search is being conducted under this suet o ction; and ith d w (b) the law or tax offence that is the basis fobru ttehe search. (3) The provisions of section 109(4) to (d7is) t rishall apply to a search to be conducted under this section .or d (4) The powers provided for underd us cue bsection (3)(a) to (e) of section 109 shall apply to a se ro eaprch conducted under this section as if an order of the cou rbte hr as been obtained. ay m [s. 95] oo k Provision of 111. A security provides db thi by any person for the purposes of security complying with any opf rt rovision of a tax law shall not act as a defence in any por po aceeding for recovery of tax or with respect to an offence du. n Nder that tax law or any other tax law. erv e s [s. 96] s r e Publication of 112. r–ig( h1t ) The Commissioner General may publish in a offenders neAwll. spaper or any media of wide circulation within the United ia za nRepublic, a list of persons who- Tan (a) have repeatedly failed to pay tax on time after being t o f n notified of his obligation to pay tax by the Commissioner rnm e General; veo (b) have been convicted of an offence under a tax law, G 02 5 where the time for appeal has expired; or ©2 (c) had repeatedly commited such an offence compounded under section 106. (2) The list of persons under subsection (1) may specify- (a) the name and address of the person; (b) the offence committed; 364 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (c) the period during which the offence occurred; (d) the amount of tax involved; and (e) particulars of any fine or sentence imposed. [s. 97] . Regulations 113.–(1) The Minister may make regulations under any tax law OAG for the better carrying into effect of the principles, purposes of n and provisions of that tax law. siois (2) Regulations made under subsection (1) may relatpee rtmo a tax law or tax laws. ut ith o w [s. 98] ute d Amendments by 114. The Minister may, in consultation with thster i i bCommissioner Minister General, by order published in the Gazet toer ,d amend, vary, add or replace any Schedule to this Act. ed du c rep ro [s. 99] be PAR maTy XIII TRANSITION ANoDokb SAVINGS PROVISIONS th is Transition and 115.–(1) Subject tort oth f is section, the respective tax laws shall savings provisions continue to apploy p f aor periods and events occurring before the date on whicehd . tNhis Act comes into effect. (2) All earpvs pointments made under the respective tax laws e and su r htbs sisting at the date this Act comes into effect shall be deelml ri ged to be appointments made under this Act. . Aia (3) Any international agreement made by the Government n nz a of the United Republic that is effective under the respective a of T tax laws at the time this Act comes into effect shall continue to nt have effect under this Act. rnm e e (4) Regulations, rules, practice notes, rulings, orders and Gov notices made under the respective tax laws and in force at the 5 20 2 commencement of this Act shall continue to be in force as © if they were made under this Act until such time as they are amended or revoked. 365 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] (5) All blank forms and documents used in relation to the respective tax laws may continue to be used under this Act and all references in those forms and documents to provisions of and expressions appropriate to the prior law shall be deemed . to refer to the corresponding provisions and expressions of G OA this Act. n o f (6) Any appeal, prosecution or other proceedingssiois commenced before this Act comes into operation pes rhmall continue and be disposed of as if this Act had not comut e into force. ith o d w (7) Any tax liability that arose before this A te buct comes into operation may be recovered by fresh proce ri deisd t ings under this Act, but without prejudice to any action da ol rr eady taken for the recovery of the tax. uc e d (8) A reference in this Act to “th ro epis Act” or to a provision of “this Act” includes, where the c boen rtext requires, a reference to the prior law or to a corresponay m ding provision of the prior law, respectively. ok s b o th i [s. 100] rt o f pa . N o SCHEDULES d erv e res hts FIRST SCHEDULE rig . A ll ia (Made under section 3) n nz a a TAX RETURNS AND ASSESSMENTS f T Tax Retunrtn os 1. The following are tax returns for the purposes of this Act: Acts Nmoes. (a) in relation to income tax- 4 oefr n2017 s. 61 v (i) a statement of tax withheld or treated as withheld filed o8 of 2019 s. 46 G7 of 2023 s. 59 under section 109 of the Income Tax Act; 250 (ii) a statement of estimated tax payable filed under section ©2 114 of the Income Tax Act; and (iii) a return of income filed under section 117 of the Income Cap. 332 Tax Act; (b) in relation to Value Added Tax, a return filed under section Cap. 148 69 of the Value Added Tax Act; 366 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] Cap. 82 (c) [Spent.] (d) in relation to Gaming tax, a return filed under section 33 of Cap. 41 the Gaming Act; (e) in relation to Excise Duty, a return filed under section 140 of Cap. 147 the Excise (Management and Tariff) Act; . (f) in relation to Airport Service Charge, a return filed under AG Cap. 365 section 7 of the Airport Service Charge Act; and f Oo (g) in relation to Port Service Charge, a return filed under io n Cap. 264 section 7 of the Port Service Charge Act. iss (h) in relation to bed night levy, a return filed under the Topue rrmism (Tourism Development Levy) Regulations. ut tho Assessements 2.–(1) For purposes of this Act, “assessment” includes- wi (a) in relation to income tax, an assessment madutee dunder section Cap. 332 120 of the Income Tax Act; tribs (b) in relation to the taxes referred to in pr adr iagraphs 1(b) to (e), an assessment made under paragrapd hoe 3 of this Schedule in respect of the obligation to file a dtua cx return; (c) in relation to gaming tax, a de ro emp and notice of the Board made Cap. 41 under section 33 of the Game ring Act; (d) in relation to stamp dauyt by, a note, certificate, decision or requirement of a Stakm mp Duty Officer under section 24, 25, Cap. 189 45 or 51 of the Stabmo op Duty Act; (e) in relation to tphir so perty rate, a demand or a demand note issued by tt ho fe Commissioner General under the Local Cap. 289 Governmeanr p t Authorities (Rating) Act; and (f) in relatNio. on to this act, an assessment made under sections 58 (ejdv eopardy assessment), 59 (adjusted assessment) or 92 (sien rterest and penalty assessement) of this Act. (2) The ts re Commissioner General may exercise all powers under this Arigc ht with respect to any assessment (including a self-assessment), incAll ul ding powers under Part VII of this Act. n3ia . Self-assessments a .–(1) Where a person files a tax return in accordance with an obligation an z to which this paragraph applies, an assessment is treated as made on the of T due date for filing the tax return. nte (2) The assessment is in an amount equal to the net amount of tax rnm due, if any, as shown in the tax return. veo (3) An “obligation to which this paragraph applies” means an 5 G2 obligation to file a tax return in accordance with the provisions referred 20 to in paragraphs 1(b) to (e). © 367 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] SECOND SCHEDULE (Made under section 4(3)) CURRENCY POINT . 1 currency point equals to 15,000/= Tanzania Shillings. G f O A o ion THIRD SCHEDULE miss er (Made under section 25(2) and (4)) p ou t th TRANSACTIONS FOR WHICH TAXPAYEd Rw i IDENTIFICATION NUMBER IS REQUIuRteED ib dis tr r Act No. S/N. INSTITUTION PURPOSEe dO oF TRANSACTIONS 3 of 2021 s. 67 1. Commissioner General New reogd uisctrations under the of the Tax Authority Val r rueep Added Tax Act. I mbe portation of goods; customs ayclearing and forwarding. k m oo Registration of ownership or is b transfer of vehicles under the th of Road Traffic Act. art p Licensing of motor vehicles under N o the Transport Licensing Act. . 2. Commvei dssioner for Lands Registration of title upon transfer se r e of ownership. 3. hCts r entral and Local Trade licence. ig ll r Government ia4. . A Business Registration New registrations n za and Licensing Authority Tan f 5. Registrar of Patents and New registrations nt o Trade Service Marks rnm e 6. Ministry of Industry and Trade licensing and industrial veo Trade licensing 25 G 7. Ministry of Natural Licensing 20© Resources and Tourism 8. Ministry of Energy and Licensing Minerals 368 THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] 9. All Government All contracts, including contract Ministries, Government of supply of goods and services. Agencies, Local Government Authorities, Financial Institutions, . Cooperative Societies G OA and Public Bodies. of n 10. Workers Compensation Employee’s registration sio mis Fund r pe 11. Occupational Safety and Employee’s registration ut o Health Authority with 12. Government, Company Employment ted or individual ibu dis tr or ce d u pro d e e r ay b m oo k b thi s f art o o p d. N erv e s re igh ts All r nia . a an z of T en t rnm ov e 5 G2 ©20 369 G. A of O sio n is rm t p e ou ith ted w u str ib i or d ce d u rod re p e ay b k m oo his b f t art o No p ed . rv se ts re igh All r nia . nz a a f T nt o me ve rn 5 G o 2 ©20