The Tax Administration Act, Chapter 438 [Principal Legislation], Revised Edition 2023

115. Transition and savings provisions. an fT to SCHEDULES en n m er ov G 25 20 © 287  CHAPTER 438 THE TAX ADMINISTRATION ACT An Act to consolidate provisions relating to tax administration with a view . AG O to easing the administration of tax and enforcement of tax laws by the of n Tanzania Revenue Authority; to introduce currency point system in tax io s is administration; and to provide matters incidental thereto. m er tp [1st August, 2015] ou [GN. No. 304 of 2015] ith w Acts Nos. 8 of 2019 ed 10 of 2015 8 of 2020 ut rib 2 of 2016 3 of 2021 st 4 of 2017 10 of 2021 di or 7 of 2017 5 of 2022 ed 4 of 2018 7 of 2023 uc od pr re be PART I ay m PRELIMINARY PROVISIONS ok bo is th

1 — This Act may be cited as the Tax Administration Act

1. This Act may be cited as the Tax Administration Act. of Short title rt pa o

2 — This Act shall apply to Mainland Tanzania as well as to

2. This Act shall apply to Mainland Tanzania as well as to .N Application d Tanzania Zanzibar in respect of tax laws which apply to both ver se parts of the United Republic. re s ht rig Interpretation 3.–(1) The provisions of this Act shall, for better carrying out ll .A Acts Nos. and giving effect to the purposes of this Act, apply to all other a ni 7 of 2017 s. 44 za 8 of 2019 s. 42 tax laws. an fT 5 of 2022 s. 105 to (2) Any term which is not defined in this Act shall, to the en m extent necessary to give effect to the purposes of this Act, have n er ov a meaning ascribed to it in the relevant tax law. G 25 (3) In this Act, unless the context otherwise requires- 20 © “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 . AG O tax liability made under a tax law by the Commissioner of n General or by way of self-assessment and it includes io s is matters prescribed in the First Schedule; m er tp “Authority” means the Tanzania Revenue Authority ou established under the Tanzania Revenue Authority Act; ith Cap. 399 w “authorised officer” means an officer of the Authority dealing ed ut rib with tax matters in relation to tax laws and who has been st di authorised in writing to perform special functions in or ed relation to any tax law; uc od “Board” means the Tax Revenue Appeals Board established re pr Cap. 408 under the Tax Revenue Appeals Act; be “Commissioner General” means the Commissioner General ay m appointed under the Tanzania Revenue Authority Act; ok Cap. 399 bo “charged assets owned by a taxpayer” means assets held by is th a withholding agent on trust under section 71 or assets of rt charged under section 72; pa o .N “class ruling” means a decision by the Commissioner d ve General on tax issues raised by a group of persons with r se re common interest; s ht “costs of charge and sale” with respect to assets, means rig ll any expenditure incurred or to be incurred by the .A a ni Commissioner General or an authorised agent with za an respect to- fT to (a) creating or releasing a charge over the assets; or en m (b) taking possession, holding and selling the charged n er assets; ov G “currency point” means a value prescribed by a tax law for 25 20 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, . AG O certificate, claim, note, notice, order, record, return or of n ruling; io s is “file” in relation to a document, includes lodging or m er tp furnishing a document in writing or in electronic form; ou “fiscal device” means an electronic receipt issuing ith w machine or any other electronic system authorised ed ut rib by the Commissioner General to be used for business st di transactions; or ed “fiscal receipt” means a receipt or invoice issued by using uc od a fiscal device, Government electronic payment gateway re pr system or any other electronic system approved by the be Commissioner General; ay m “generally accepted accounting principles” means the ok bo accounting principles adopted by the National Board of is th Accountants and Auditors; of rt “guarantor” means a person who grants the Commissioner pa o .N General the security for tax payable or to become payable d ve by another taxpayer; r se re “manager” in relation to an entity, includes- s ht (a) a councillor, director, manager, member, officer or rig ll other person who participates alone or jointly with .A a ni other persons in making senior management decisions za an on behalf of the entity; fT to (b) a partner and a trustee; en m (c) a person treated as a manager of an entity by any other n er tax law; and ov G (d) a person whose directions and instructions affect the 25 20 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 . AG O or other article used for manufacturing, selling or of n distributing excisable goods or any article found on any io s is premises used by that person for that purpose; m er tp “possessor of an asset” includes- ou (a) in relation to premises or a place, the owner, manager ith w or any other person on the premises or place; and ed ut rib (b) in relation to any other asset, a person from whom the st di asset is seized or taken; or ed “private ruling” means a decision by the Commissioner uc od General on tax issues raised by a person; re pr “restrain” includes detaining, locking up, marking, sealing, be seizing, stopping, taking away or otherwise securing; ay m “self-assessment” means an assessment made under a tax ok bo law by a person who is obliged to file a tax return; is th “statutory rate” means the prevailing discount rate of rt determined by the Bank of Tanzania; pa o .N “tax” for purposes of administration under this Act, includes d ve tax, charges, fees, tolls, rates, levies, duties, penalty and r se re interest imposed under any tax law and any additional s ht profits tax payable under any arrangement or agreement; rig ll “tax benefit” in relation to a person means a benefit earned by- .A a ni (a) avoiding, reducing or postponing a tax liability of that za an person; fT to (b) increasing a claim of the person for a refund of tax; en m (c) preventing or obstructing collection of tax from the n er person; or ov G (d) any other act for which the Commissioner General is 25 20 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; . AG O (c) any international agreement concluded under section of n 7; and io s is (d) any regulations made under this Act or made under m er tp any Act mentioned in paragraph (a) or (b); ou “tax officer” means any officer of the Authority dealing with ith w tax matters in relation to any tax law; ed ut rib “taxpayer” means any person who is liable to pay tax; st di “tax return” means a return prescribed in the First Schedule or ed to this Act; uc od “tax shortfall” means underpayment of tax which in the re pr Commissioner General’s opinion may have resulted into be inaccuracy statement had it gone undetected; ay m “vehicle” includes every description of conveyance for the ok bo transport of persons or goods by land; is th “vessel” includes every description of conveyance for the of rt transport of persons or goods by water; pa o .N “withholding agent” means a person obliged to withhold tax d ve from a payment; and r se re “withholding tax” means the income tax which is required s ht to be withheld by a withholding agent from a payment rig ll under Subdivision A of Division II of Part VII of the .A a ni Cap. 332 Income Tax Act. za an fT

4 — (1) An amount of money referred to in a specific tax law

4.–(1) An amount of money referred to in a specific tax law to Currency point en system shall, for purposes of the promotion of fairness in the tax system n m er and protection against the effects of inflation, be expressed in ov G terms of currency points. 25 20 (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 O TAX LAWS AND THEIR INTERPRETATION of n io s (a) Tax Laws is m er tp Powers of 5.–(1) The powers of the Commissioner General shall, in ou ith Commissioner addition to the powers granted under this Act, be exercised in w General and tax ed officers respect of any tax laws. ut rib (2) A tax officer may, in performing the functions under st di this Act- or ed (a) act for the purposes of more than one tax law at the uc od same time; and re pr (b) gather information for the purposes of any tax law in be ay the proper execution of duties under a particular tax m ok law. bo is th Relationship with 6.–(1) Where the customs law applies to the Value Added Tax of rt customs law or the Excise Duty on imported or exported goods and for pa o .N matters related thereto, Parts I, II, III, IV and V of this Act d ve shall apply. r se (2) The Commissioner General may, subject to subsection re s ht (3) and where a tax law has provided for certain administrative rig ll provisions of the customs law, apply relevant provisions of this .A a ni Act instead of the provisions of the customs law. za an (3) The Commissioner General shall exercise the powers in fT to subsection (2) in a manner consistent with the customs law. en m (4) The provisions of Parts II (b), III and VIII of this Act n er shall, to the extent that they are inconsistent with the provisions ov G of the customs law, apply to the customs law. 25 20 © 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. . AG O (3) For purposes of this section, the Host Government of n Agreement concerning the East Africa Crude Oil Pipeline io s is (EACOP) Project shall be regarded as an international m er tp agreement and the provisions of subsection (1) shall apply. ou ith (b) Interpretation of Tax Laws w ed ut rib st

8 — (1) Notwithstanding any provision of this Act, where the

8.–(1) Notwithstanding any provision of this Act, where the di Schemes for or obtaining undue Commissioner General is satisfied that any scheme that has ed tax benefits uc Acts Nos. the effect of conferring tax benefit on any person was entered od 2 of 2016 s. 53 pr into or carried out- re 4 of 2017 s. 48 be (a) solely or mainly for the purpose of obtaining that ay m benefit; and ok bo (b) by means or in a manner that would not normally be is th employed for bona fide business purposes, or by means of or in a manner of the creation of rights or obligations rt pa o that would not normally be created between persons d .N dealing at arm’s length, ver se the Commissioner General may determine the liability for re s any tax imposed by a tax law and its amount, as if the scheme ht rig had not been entered into or carried out, or in such manner ll .A a as, in the circumstances of the case, he considers appropriate ni za for the prevention or diminution of the tax benefits sought to an fT be obtained by the scheme. to en (2) A determination under subsection (1) shall be deemed n m er to be an assessment of tax and the provisions of this Act and ov G any other provisions of tax law in relation to assessments, shall 25 20 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, . AG O (a) such predetermined rental values shall only apply of n to properties considered to be of the same quality or io s is standard; and m er tp (b) independent valuers were involved in advising the ou Commissioner General. ith w (4) In this section “bona fide business purposes” does not ed ut rib include obtaining tax benefit. st di or

9 — (1) The Commissioner General may, issue practice notes

9.–(1) The Commissioner General may, issue practice notes ed Issuance of uc practice notes with a view to ensuring consistency in the administration of tax od pr laws and to provide guidance to persons affected by such laws. re be (2) A practice note shall- ay m (a) be made by way of a circular; ok bo (b) categorically state that it is a practice note; is th (c) have a number and subject heading by which it can be of rt identified; and pa o (d) apply from the date specified in such note, or from the d .N date of the issuance. ver se re s

10 — (1) The Commissioner General may revoke a practice

10.–(1) The Commissioner General may revoke a practice ht Revocation of rig practice notes note in whole or part. ll .A (2) The enactment of an Act of Parliament or issuance of a ni za a practice note that is inconsistent with an existing practice an fT note, revokes the existing practice note to the extent of the to en inconsistency. n m er ov

11 — (1) The Commissioner General may, on application in

11.–(1) The Commissioner General may, on application in G Private and class 25 rulings writing by a person, issue a private ruling or a class ruling 20 © 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 person io s is in a specified class, such ruling shall bind the Commissioner m er tp General. ou (4) The ruling issued under this section shall be binding- ith w (a) if prior to its issue, the applicant makes- ed ut rib (i) full and true disclosure of all aspects of the st di arrangement to which the ruling applies to the or ed Commissioner General; and uc od (ii) the arrangement proceeds in all material respects re pr as described in the application for the ruling; be (b) if it clearly states in its heading to be a private ruling or ay m class ruling; and ok bo (c) from date of issue for the period specified in the ruling. is th (5) A private or class ruling shall not have binding effect to of rt the Commissioner General with respect to any person other pa o .N than the applicant or persons in the specified class. d ve (6) A person shall not challenge a private or class ruling, r se re unless the challenge is in respect of a tax decision made with s ht respect to an arrangement which is the subject of a ruling. rig ll (7) For purposes of this section, a class of persons includes- .A a ni (a) members of an entity; and za an (b) such persons who, in the opinion of the Commissioner fT to General, may be identified with respect to the en m application of particular provisions of tax laws. n er ov G Refusal of 12.–(1) The Commissioner General may refuse an application 25 20 application for for a private or class ruling if- © private or class 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 of n an existing practice note adequately covers the io s is arrangement; m er tp (c) the application is frivolous or vexatious; ou (d) the arrangement has not been carried out and there are ith w reasonable grounds to believe that it will not be carried ed ut rib out; st di (e) the applicant has not provided the Commissioner or ed General with sufficient information to make a ruling; uc od or re pr (f) in the opinion of the Commissioner General, it would be be unreasonable to comply with the application having ay m regard to the resources needed to comply and any other ok bo matters the Commissioner General considers relevant. is th (2) Where the Commissioner General refuses to grant of rt private or class ruling, he shall serve the applicant with a pa o .N written notice stating the reasons for the refusal. d ver se

13 — (1) The Commissioner General may issue

13.–(1) The Commissioner General may issue- re Issuance of s private and class ht (a) a private ruling by serving a written notice of the ruling rig rulings to the applicant; or ll a.A (b) a class ruling by serving a written notice of the ruling to ni za an the applicant and making the ruling publicly available. fT (2) The Commissioner General may, in issuing a private or to en class ruling, base on the assumptions of a future event or other n m er matters he considered appropriate. ov G (3) A private or class ruling shall- 25 20 (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 . AG O in writing; or of n (ii) the applicant’s Taxpayer Identification Number, io s is the class members or any other person identified m er tp or referred to in the ruling but an applicant may ou instruct in writing that his identity be revealed. ith w ed ut

14 — (1) The Commissioner General may, by a notice in writing,

14.–(1) The Commissioner General may, by a notice in writing, rib Revocation of st private and class revoke a private or class ruling in whole or in part. di or rulings (2) Where the ruling is revoked under subsection (1), the ed uc Commissioner General shall- od pr (a) in the case of a private ruling, serve the applicant with re be a revocation notice; and ay m (b) in the case of a class ruling, serve the applicants and ok bo make the revocation notice publicly available. is th of PART III rt pa o .N THE AUTHORITY, TAX PAYERS d ve AND TAX CONSULTANTS r se re s (a) The Authority ht rig ll

15 — The Authority shall be responsible for administering and

15. The Authority shall be responsible for administering and .A Administration of a ni tax laws giving effect to the tax laws in accordance with the provisions za an Cap. 399 of the Tanzania Revenue Authority Act. fT to en

16 — (1) The Commissioner General may, pursuant to section

16.–(1) The Commissioner General may, pursuant to section m Authorisation of n er tax officers 17 of the Tanzania Revenue Authority Act, delegate his ov Cap. 399 G functions to tax officers in relation to tax laws. 25 20 (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 Revenue Authority Act and vested with the responsibility of . AG Cap. 399 O administering any tax law may exercise the powers to- of n (a) compound offences under section 106; and io s is (b) remit penalties and interest under section 81; or m er tp (c) refund tax under section 84. ou ith w

17 — (1) The Authority shall issue an identity card to each tax

17.–(1) The Authority shall issue an identity card to each tax ed Identification of ut tax or authorised officer or authorised officer. rib officers st (2) An identity card shall bear the logo of the Authority and di or a passport size photograph of the tax or authorised officer. ed uc (3) When a tax or authorised officer exercises powers or od pr performs functions for purposes of the administration of tax re be law, that officer shall at all times wear and produce the identity ay m card upon request by a member of the public. ok bo (4) Where the tax or authorised officer fails to produce the is th identity card as requested, that tax or authorised officer is not of rt authorised to perform any of the function under a tax law, and pa o such member of the public may refuse to deal with the officer. d .N ver se Experts 18.–(1) The Authority may engage an expert on such terms re s and conditions as the Commissioner General thinks fit, to ht rig assist the Authority in the proper performance of its functions. ll .A (2) The Commissioner General shall supervise such an expert. a ni za (3) A taxpayer may with reasonable cause refuse to an fT deal directly with an expert and write a complaint to the to en Commissioner General. n m er (4) Where an expert is engaged and it is discovered that his ov G engagement may result into a conflict of interest, the Authority 25 20 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 . AG officer from from a public institution to assist or protect the Authority in O public institutions of the proper performance of its functions under this Act. n io s is (2) The Commissioner General shall supervise the public m er officer referred to under subsection (1) to assist him in the tp ou performance of such functions. ith w ed ut Remuneration for 20.–(1) A person shall not, unless expressly provided for in a rib st complying with tax law, be entitled to any remuneration or reimbursement of di tax laws or expenses from the Authority for complying with the provisions ed uc of a tax law. od pr (2) Subsection (1) shall not apply to the remuneration of- re be (a) an officer; or ay (b) an expert or a public officer who is assisting the m ok Authority in the performance of its functions. bo is (3) The remuneration of persons referred to in subsection th of (2) shall be determined in accordance with the Tanzania rt pa Revenue Authority Act. o Cap. 399 d .N ver

21 — (1) A person who is or was employed or engaged by the

21.–(1) A person who is or was employed or engaged by the se Confidentiality re Authority to provide assistance to the Authority shall treat all s ht rig information and documents that, by reason of his employment ll .A or engagement, came into his possession or knowledge in a ni za connection with any tax law, as secret and confidential. an fT (2) Notwithstanding the provisions of subsection (1), a to en person may disclose information or documents referred to in n m subsection (1) if such disclosure is- er ov (a) made to a person who is currently employed or engaged G 25 by the Authority and the information is required in the 20 © 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 . AG O Zanzibar, in a revenue or statistical department where of n such disclosure is necessary for the performance of the io s is person’s official duties; m er tp (c) the Controller and Auditor-General or any person ou authorised by the Controller and Auditor-General ith w where such disclosure is necessary for the performance ed ut rib of official duties; or st di (d) the competent authority of the Government of another or ed country with which the United Republic has entered uc od into an international agreement, to the extent permitted re pr under that agreement. be (4) This section does not apply to information that may be ay m published under section 112. ok bo (5) This section does not prevent disclosure of information is th relating to a specific taxpayer to the taxpayer concerned or, of rt with the taxpayer’s written consent, to another person. pa o d .N ve (b) Taxpayer Identification Number r se re s ht

22 — (1) A person who becomes potentially liable to tax by

22.–(1) A person who becomes potentially liable to tax by rig Application ll for Taxpayer .A reason of carrying a business or investment shall apply for a a Identification ni Taxpayer Identification Number within fifteen days from the za Number an Acts Nos. date of commencing the business. fT 8 of 2019 s. 43 to 3 of 2021 s. 51 (2) Notwithstanding the provision of subsection (1), the en m 5 of 2022 s. 106 Commissioner General shall- n er ov (a) register and issue Taxpayer Identification Number to G 25 every Tanzanian citizen who has been registered and 20 © 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 of n shall be- io s is (a) in the prescribed form; m er tp (b) supported by documentary evidence of the applicant’s ou identity; and ith w (c) filed in the prescribed manner. ed ut rib (5) The provisions of subsection (2) shall come into st di operation on 1st January, 2023. or ed (6) Where a person is registered and issued with a Taxpayer uc od Identification Number for the first time, for the purposes of re pr carrying on a business or investment, the requirement to pay be instalment tax under the Income Tax Act shall be deferred for a ay Cap. 332 m period of six months from the date when the Tax Identification ok bo Number was issued. is th (7) A person referred in subsection (6) shall pay the of rt whole of the deferred tax in the respective year in three equal pa o .N instalments, in the remaining period. d ve (8) Where the deferment granted under subsection (6) r se re has the effect of deferring the tax payable beyond the year of s ht income to which the tax relates, the whole of the tax payable rig ll shall be paid in the last instalment period of the year of income. .A a ni (9) Nothing in this section shall be taken to preclude za an the person granted deferment under this section to pay the fT to assessed tax during the deferment period. en n m er Registration of 23.–(1) The Commissioner General shall recognise and register ov G small vendors small vendors and service providers conducting business in an 25 and service 20 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 . AG O managers, masters of ceremony and such other small vendors of n or service providers as the Minister may prescribe. io s is [s. 22A] m er tp ou Issue of Taxpayer 24.–(1) The Commissioner General may, for purposes of ith w Identification identification and cross-checking and in the case of an ed Number ut application made under section 22, issue a person with the rib st Taxpayer Identification Number, within seven days upon di or receipt of the application. ed uc (2) A Taxpayer Identification Number shall not be od pr transferred or used by another person. re be (3) A person shall own one Taxpayer Identification Number ay m and use such Taxpayer Identification Number for the purposes ok bo of all tax laws. is th (4) The Commissioner General shall not issue a Taxpayer of rt Identification Number to a person unless he is satisfied- pa o (a) as to the person’s true identity; and d .N (b) that the person does not have an existing Taxpayer ver se Identification Number. re s ht (5) Where the Commissioner General refuses an application rig for a Taxpayer Identification Number, he shall serve the ll .A a applicant with written notice of refusal within fourteen days ni za an from the date of receipt of the application giving reasons for fT such refusal. to en [s. 23] n m er ov G Use of Taxpayer 25.–(1) A person who has been issued with the Taxpayer 25 Identification 20 Identification Number by the Authority shall include the number © 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 of n of that certificate. io s is (4) The Commissioner General may, in writing, require an m er tp institution mentioned in the Third Schedule to furnish him ou with information relating to- ith w (a) the value of the transaction prescribed in the Second ed ut rib Column of the Third Schedule conducted with st di that institution during the period specified in the or ed Commissioner General’s notice; and uc od (b) the names, addresses and Taxpayer Identification re pr Numbers of the persons with which those transactions be were conducted. ay m (5) An institution which has been required to furnish ok bo information under subsection (4) shall, within seven days from is th the date of receipt of the notice, furnish the Commissioner of rt General with the information required. pa o .N (6) The particulars to be furnished in respect of an d ve application for a Taxpayer Identification Number shall not be r se re a basis for assessiment of tax. s ht (7) A person or institution that contravenes this section rig ll commits an offence. .A a ni [s. 24] za an fT

26 — (1) The Commissioner General shall cancel a Taxpayer

26.–(1) The Commissioner General shall cancel a Taxpayer to Cancellation, en replacement Identification Number where he is satisfied that- n m and amendment er of Taxpayer (a) the bearer of the number is dead or, in the case of a ov G Identification body corporate, is wound up; 25 Number 20 (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 . AG O number; or of n (e) there is reasonable grounds to warrant cancellation of io s is Taxpayer Identification Number. m er tp (2) A person who owns a Taxpayer Identification Number ou shall, in writing and within thirty days from the date of any ith w change of details referred to in the Taxpayer Identification ed ut rib Number Certificate, notify the Commissioner General of the st di changes in the Certificate. or ed (3) The Commissioner General may, without cancelling uc od a Taxpayer Identification Number, issue a person with an re pr amended Taxpayer Identification Number Certificate when be appropriate. ay m [s. 25] ok bo is th Right to 27. The Authority shall provide to the taxpayer information of information rt regarding the taxpayer’s position in accordance with the pa o provisions of the respective tax law. d .N [s. 26] ver se re s

28 — (1) A taxpayer

28.–(1) A taxpayer- ht Right to rig representation (a) has the right to be represented in tax matters; and ll .A Act No. (b) shall notify the Commissioner General in writing upon a 8 of 2020 s. 68 ni za appointing a representative. an fT (2) The Authority is not obliged to communicate with a to en taxpayer through the taxpayer’s representative. n m er (3) A taxpayer’s representative referred to under this section ov G shall be a practising advocate, a tax consultant or such other 25 20 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 . AG 5 of 2022 s. 107 of any person under a tax law for purposes of discharging the O person’s obligation in a tax law. of n io (2) The Commissioner General shall not licence an individual s is m to act as a tax consultant under a tax law unless he is satisfied er tp that the individual has fulfilled the conditions prescribed in ou ith the regulations or licence issued by the Commissioner. w ed (3) A duly licensed tax consultant may act as an agent of a ut rib taxpayer under any tax law subject to conditions prescribed in st di the regulations or licence. or ed (4) Except as otherwise provided for under this Act, an uc od individual other than an employee or manager of a person, pr re who is not licensed under this section, shall not act on behalf of be ay such person or communicate with the Commissioner General m ok on pretext of representing a person on any matter under any bo tax law. is th of [s. 28] rt pa o .N PART IV d ver ESTABLISHMENT OF TAX OMBUDSMAN1 se re s ht rig Establishment 30. There is hereby established an office to be known as Tax ll .A of office of Tax Ombudsman Service which shall be responsible for reviewing a ni Ombudsman za Acts Nos. and addressing any complaint by a person regarding service, an 8 of 2019 s. 45 fT procedural or administrative matter arising in the course of to 3 of 2021 s. 52 en administering tax laws by the Authority, the Commissioner n m General or a staff of the Authority. er ov [s. 28A] G 25 20 © 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 person. io s is (3) Notwithstanding subsection (2), the Tax Ombudsman’s m er tp findings shall directly be submitted to the Minister as ou recommendations for the Minister’s directives. ith w (4) The Tax Ombudsman shall hold office for a renewable ed ut rib period of three years under such terms and conditions st di regarding remuneration as the Minister may determine. or ed (5) The Minister shall prescribe regulations governing the uc od conduct of Tax Ombudsman and modalities of recruiting staff re pr and employees to perform Tax Ombudsman Service. be [s. 28B] ay m ok bo Duties of Tax 32. In discharging his duties the Tax Ombudsman shall- is th Ombudsman (a) review a complaint, and where necessary, resolve it of Acts Nos. rt amicably through mediation or conciliation; pa 8 of 2019 s. 45 o 3 of 2021 s. 54 (b) act independently and impartially in handling d .N complaints; ver se (c) follow informal, fair and cost effective procedures in re s ht handling complaints; rig (d) provide information, training and awareness to ll .A a taxpayers on tax ombudsman service, functions and ni za an procedures of making complaints; fT (e) facilitate access by taxpayer to dispute resolution to en processes within the Authority; and n m er (f) identify and review tax administrative issues related to ov G customer service, or procedures and behaviours which 25 20 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 s is m er Confidentiality 34.–(1) The Tax Ombudsman and person acting on his behalf shall tp ou Act No. not disclose information of any kind that is obtained by or on behalf ith 8 of 2019 s. 45 w of the Tax Ombudsman’s or prepared from information obtained ed ut by or on behalf of the Tax Ombudsman, to the Authority. rib st (2) The provisions of section 21 of the Act shall apply on di or the Tax Ombudsman including his officers, any person who ed uc acts on his behalf and a person whose complaints are being od pr considered by the Tax Ombudsman. re be (3) Notwithstanding subsection (2), the Authority shall allow ay m the Tax Ombudsman access to information in the possession ok bo of the Authority which relates to the Tax Ombudsman’s powers is th and duties under this Act. of [s. 28E] rt pa o .N Protection of Tax 35. The provision of section 24 of the Tanzania Revenue d ve Ombudsman r Authority Act shall apply under this Part. se and his officers re [s. 28F] s Cap. 399 ht rig Act No. ll 8 of 2019 s. 45 .A a

36 — The Minister may make Regulations to prescribe for the

36. The Minister may make Regulations to prescribe for the ni Procedure for za conducting procedure of conducting and handling complaints by the Tax an and handling fT Ombudsman. to complaints en Act No. [s. 28G] m 8 of 2019 s. 45 n er ov G PART V 25 20 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 subsection io s is (1), the taxpayer shall submit the official translation within the m er tp time prescribed under section 53. ou [s. 29] ith w ed ut

38 — The Commissioner General may prescribe the forms

38. The Commissioner General may prescribe the forms rib Forms and st notices required under a tax law and he shall cause such forms to be di or available to the public at offices of the Authority and at such ed uc other locations and places or by such other medium as he may od pr determine. re be [s. 30] ay m ok

39 — (1) A document issued by the Commissioner General

39.–(1) A document issued by the Commissioner General bo Authorised is and defective under a tax law is sufficiently authenticated if the name or title th documents of of the Commissioner General or of the authorised officer of rt pa the Authority is- o d .N (a) in the case of a paper document, printed, signed and ver se stamped; or re s (b) in the case of an electronic document, imbedded in the ht rig document by way of electronic signature. ll .A (2) A declaration made by a person under a tax law is a ni za sufficiently authenticated if it is duly signed by that person. an fT (3) A document issued under a tax law is not invalid or to en defective if- n m er (a) it is in substance and effect in conformity with the tax ov G law; and 25 20 (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. . AG O [s. 31] of n io s

40 — (1) A paper document shall be considered to have been

40.–(1) A paper document shall be considered to have been is Paper documents m er filed with filed with the Commissioner General under a tax law when- tp Commissioner ou General (a) physically delivered to the office of the Authority; ith w (b) sent by way of a registered post to an office of the ed ut Authority; or rib st (c) sent at any other place as the Commissioner General di or may specify. ed uc (2) A document referred to in subsection (1) shall be treated od pr to have been received by the Commissioner General- re be (a) in the case of service by fax or electronic mail, at the ay m time the transmission is sent; ok bo (b) in the case of service by handing to an officer of the is th Authority or leaving at a place, at the time of handing of rt or leaving; pa o (c) in the case of service by registered post, at the time the d .N document is delivered or the Authority is informed ver se that the document awaits the Authority; re s ht (d) in the case of other service by post ten days after rig posting; and ll .A a (e) in the case of other services by the post from an address ni za an outside the United Republic, the time at which the fT document would normally be delivered in the ordinary to en course of post. n m er [s. 32] ov G 25 20 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 . AG O awaits the person, the post office; or of n (ii) the address referred to in the person’s Taxpayer io s is Identification Number. m er tp (2) A document shall be considered to have been received ou in the following circumstances: ith w (a) in the case of service by handing to a person or leaving ed ut rib at a place, at the time of handing or leaving; st di (b) in the case of service by registered post, at the time the or ed document is delivered or the person is informed that uc od the document awaits the person; re pr (c) in the case of other service by post to an address within be the United Republic, ten days after posting; and ay m (d) in the case of other service by post to an address outside ok bo the United Republic, the time at which the document is th would normally be delivered in the ordinary course of of rt post. pa o .N [s. 33] d ve Electronic 42.–(1) The Commissioner General may establish and operate r se document system re an electronic system for filing and furnishing of documents s ht and servicing documents. rig ll (2) An electronic document is considered to be filed by a .A a ni person and received by the Commissioner General under a tax za an law when a document registration number is created by using fT to the person’s authentication code. en m (3) Subsection (2) shall not apply to a person who has n er proved to the satisfaction of the Commissioner General that he ov G did not send the document or the document was sent without 25 20 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 n [s. 34] io s is m er PART VI tp ou ith MAINTENANCE OF DOCUMENTS AND w ed PROVISION OF INFORMATION ut rib st (a) Maintenance of Documents di or ed

43 — (1) Every taxable or liable person shall, within the United

43.–(1) Every taxable or liable person shall, within the United uc Maintenance of od documents Acts Nos. Republic, maintain documents in paper or electronic form pr re 3 of 2021 s. 57 which- be 5 of 2022 s. 108 ay (a) contain information to be provided or filed with the m 7 of 2023 s. 53 ok Commissioner General under any tax law; bo (b) enable an accurate determination of tax payable under is th of any tax law; and rt pa (c) can be prescribed by the Commissioner General or by o .N regulations. d ve (2) Every taxable person or a person liable to tax shall keep r se re records and accounts in accordance with generally accepted s ht rig accounting principles and the requirements of a respective ll .A tax law. a ni (3) The documents referred to in subsections (1) and (2) za an shall be retained for a period of five years from the relevant fT to date or for a further period as prescribed in the tax law. en m (4) Where a person- n er ov (a) files an objection or appeal, all documents relevant to G 25 the matter in dispute shall be retained until the matter 20 © 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 . AG O the investigation or audit shall be retained until the of n Commissioner General notifies the person in writing io s is that the investigation or audit is finalised. m er tp (5) The Commissioner General may, by notice in writing- ou (a) relieve a person from the obligation to maintain ith w documents or the time for which the documents are to ed ut rib be retained; or st di (b) require a person to retain documents as prescribed in or ed the notice. uc od (6) In this section, “relevant date” means- re pr (a) in the case of income tax, the end of the year of income be for which the document is relevant; ay m (b) in the case of value added tax, the end of the prescribed ok bo accounting period for which the document is relevant; is th and of rt (c) in the case of other taxes, the last date on which the pa o .N taxpayer is obliged to lodge a document with the d ve Commissioner General for which the document is r se re relevant. s ht (7) Every taxable or liable person who maintains rig ll documents in electronic form, shall maintain in the United .A a ni Republic a primary data server for storage of documents in za an electronic form. fT to (8) The server referred to under subsection (7) shall be en m accessible by the Commissioner General for purposes of tax n er administration in the manner and time prescribed under ov G section 51. 25 20 (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 . AG receipt receives payment in respect of goods supplied or services O Act No. of rendered shall issue fiscal receipt. n 7 of 2023 s. 54 io s is (2) Notwithstanding subsection (1), the Commissioner m er General may publish in the newspaper with wide circulation tp ou or any other public media issue a list of persons or class of ith w persons who are excluded from the requirement of the use of ed ut fiscal device or issuance of fiscal receipt. rib st (3) A person who is excluded from issuing fiscal receipt di or shall issue manual receipt. ed uc (4) A person issuing the manual receipt shall enter or cause od pr to be entered in the receipt and duplicate copy the following re be particulars-: ay m (a) the date on which the payment is made; ok bo (b) full name and address of the person who sold the goods is th or rendered the services; of rt (c) full description of the goods sold or the services pa o rendered and a statement of the quality and value of the d .N goods or, the amount charged in respect of the services ver se rendered; re s ht (d) full name and address of the person to whom the goods rig were sold or to whom the services were rendered; ll a.A (e) Taxpayer Identification Number; and ni za an (f) such other particulars as the Commissioner General fT may, by a notice, specify. to en [s. 36] n m er ov G (b) Regular Provision of Information 25 20 © 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. of n (3) Where- io s is (a) a person becomes bankrupt or the company is wound- m er tp up or goes into liquidation; ou (b) the Commissioner General has reasonable grounds to ith w believe that a person- ed ut rib (i) is about to leave the United Republic indefinitely; st di (ii) intends to cease carrying on activity in the United or ed Republic; or uc od (iii) has committed an offence under a tax law; or re pr (c) a person fails to maintain adequate documentation as be required by this Act, ay m the Commissioner General may require that person to file a ok bo tax return at earlier date than the date for filing a tax return. is th (4) The Commissioner General’s requirement shall be in of rt writing and served on the person specifying the period, part pa o .N of a period or other events to be covered by the tax return and d ve the date by which the return shall be filed. r se re [s. 37] s ht rig

46 — (1) Every taxpayer required to file return shall file the

46.–(1) Every taxpayer required to file return shall file the ll Electronic filing .A a of tax returns return electronically on or before the due date as prescribed in ni za Act No. an 5 of 2022 s. 109 the specific tax law. fT (2) The Minister may prescribe the form and manner in to en which the tax return shall be filed electronically. n m er (3) Notwithstanding subsection (1), the Commissioner ov G General may, by notice in writing and under special 25 20 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 . AG O (b) to his knowledge, the return or attachment presents of n a true and fair view of the circumstances to which it io s is relates. m er tp (2) Subsection (1) shall not apply to an employee of the ou person obliged to file the tax return. ith w (3) Where a person who prepared a tax return or an ed ut rib attachment under subsection (1) is not satisfied with the st di information contained in the documents relevant for the or ed preparation of the return or an attachment, the person shall uc od furnish that other person with a statement in writing stating re pr the reasons for his dissatisfaction and proceed to sign the be return noting that the signature is subject to such a statement. ay m [s. 38] ok bo is th Extension of time 48.–(1) A person who is required to file a tax return under a tax of to file tax return rt law may apply to the Commissioner General for an extension pa Act No. o of the time by which the return shall be filed. .N 3 of 2021 s. 58 d (2) The application under subsection (1) shall be in writing ver se and be made not less than fifteen days before the due date for re s ht filing the return. rig (3) Upon the receipt of an application made under ll a .A subsection (1), the Commissioner General- ni za an (a) may extend the time upon which the return has to be fT filed; to en (b) shall serve the person with written notice of his decision n m er on the application. ov G (4) The extension of time to file a return shall not exceed 25 20 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 . AG O or in a manner other than that specified in the relevant tax law of n shall be ineffective. io s is (3) The Commissioner General shall make an assessment of m er tp the tax liability of the person as required by the tax law, including ou by way of adjusted assessment, and for this purpose may use ith w any information in the Commissioner General’s possession ed ut rib including any information obtained under subsection (1) or (2). st di [s. 40] or ed uc

50 — (1) Where the Commissioner General is not satisfied with a

50.–(1) Where the Commissioner General is not satisfied with a od Correction of tax returns and other pr tax return filed under a tax law, he shall use appropriate powers, re information be Act No. including those in Subpart (c) of this Part for acquiring further ay m 2 of 2016 s. 54 information as is necessary in the issuance of an assessment, ok bo or for confirmation on the tax payable, paid or to be paid in a is th specified accounting period. of rt (2) A tax return which has been filed shall not be amended pa o or corrected unless as specified under the relevant tax law. d .N (3) The Commissioner General may, in making an ver se assessment or adjusted assessment, take into account any re s ht information received under subsection (1). rig [s. 41] ll a.A ni za (c) Access to Information and Assets an fT to en m Access to 51.–(1) The Commissioner General shall, without a prior n er information and notice, be granted free access to any premises, documents, ov assests G goods, vessels, vehicles, aircrafts or any other assets- 25 20 (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; of n (b) seize any document which affords evidence that- io s is (i) may be material in determining the tax liability of m er tp any person; or ou (ii) an offence has been committed under a tax law; ith w (c) seize an asset to which access is obtained that contains ed ut rib or stores the document in any form; st di (d) where a document is not available or a copy is not or ed provided on request by a person having access to the uc od document, seize an asset to which access is obtained re pr under subsection (1) that the Commissioner General be or tax officer reasonably suspects contains or stores the ay m document in any form; ok bo (e) take samples of goods; and is th (f) park, moor or store, at any premises or place, any of rt vehicle, aircraft, vessel or other equipment in use by the pa o .N Commissioner General or a tax officer. d ve (4) Any document, asset or sample seized under subsection r se re (3), shall be issued with an inventory of seized properties signed s ht by the Commissioner General or the tax officer and may be- rig ll (a) in the case of seized document retained for a period .A a ni required for the determination of the person’s tax za an liability or for any proceedings under a tax law; fT to (b) in the case of seized asset retained for as long as is en m necessary to obtain access to the document; or n er (c) in the case of samples, retained and disposed of in the ov G manner directed by the Commissioner General. 25 20 (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 which io s is the tax officer has obtained access on that occasion. m er tp (3) A person who possesses any premise, document, good, ou vessel, vehicle, aircraft or asset to which an exercise of powers ith w under this Part refers, shall provide all reasonable facilities and ed ut rib assistance for the effective exercise of the powers under this st di section. or ed (4) Where a person fails to comply with subsection (3), the uc od tax officer shall exercise the powers stipulated under section 74 re pr and apply for search warrant under section 109. be (5) A person who owns documents or assets retained ay m pursuant to this Part may, at his own expenses, examine the ok bo documents and make copies or extracts of documents during is th regular office hours under the supervision as the Commissioner of rt General may determine. pa o .N (6) Where a document, asset or sample is lost or damaged d ve as the result of exercising the powers under this Act, the r se re Commissioner General shall pay the owner of the document, s ht asset or sample a reasonable compensation. rig ll [s. 43] a .A ni za

53 — (1) The Commissioner General may, by a notice in writing,

53.–(1) The Commissioner General may, by a notice in writing, an Notice to obtain fT information require a person whether or not liable for tax- to Acts Nos. en (a) to produce any information prescribed in the notice; m 8 of 2020 s. 69 n er 3 of 2021 s. 59 (b) to attend at the time and place stated in the ov G notice for the purposes of being examined by the 25 20 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 . AG O Commissioner General may determine. of n (4) Information or document requested by the io s is Commissioner General under subsection (1) shall be m er tp submitted within a period of fourteen days from the date of ou service of the notice. ith w (5) The Commissioner General may, upon receipt of an ed ut rib application, extend the time referred to in subsection (4) where st di the applicant has shown sufficient cause, and such extention or ed shall not be unreasonably withheld. uc od (6) A person who fails to submit information or documents re pr within the time prescribed under subsection (4) or (5) shall be be precluded from using such document or information as ay m evidence at the stage of objection or appeal. ok bo [s. 44] is th of rt

54 — (1) An entity engaged in the construction and extractive

54.–(1) An entity engaged in the construction and extractive pa Disclosure of o information industry shall within thirty days from the date of executing .N on contracted d a contract for contracted or sub-contracted services disclose ve services r se Acts Nos. to the Commissioner General the names of all persons re 2 of 2016 s. 55 s ht 7 of 2023 s. 55 contracted and sub-contracted in the course of performance rig of their duties or business or carrying out of any project. ll .A a (2) For purposes of this section, the entity referred to under ni za an subsection (1) shall disclose names of the persons and nature fT of the sub contracted works together with the duration of to en carrying out the works. n m er (3) An entity which fails to comply with the provisions of ov G this section shall be liable to a fine not exceeding 25% of the 25 20 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 of n with any tax law; io s is (b) the amount of tax payable by that person; m er tp (c) the class of business or other activity conducted by that ou person; or ith w (d) any other matter that the Commissioner General ed ut rib considers relevant for ensuring the collection of tax due. st di (3) Where a person has been audited or investigated for or ed any particular period, such audit or investigation shall not uc od preclude that person from being audited or investigated in the re pr following period if there are reasonable grounds for auditing be or investigating that person. ay m (4) The audit or investigation may be conducted for the ok bo purpose of more than one tax law. is th [s. 45] of rt pa o

56 — (1) A person who establishes a storage facility with the

56.–(1) A person who establishes a storage facility with the .N Registration and d monitoring of aim of keeping goods for business purposes shall register the ver storage facility se facility with the Commissioner General. re Acts Nos. s 5 of 2022 s. 110 ht (2) The owner of the storage facility registered under rig 7 of 2023 s. 56 subsection (1) shall keep records of all stored goods and report ll .A a to the Commissioner General on monthly basis in the manner ni za an prescribed by the Commissioner General. fT (3) Where the Commissioner General satisfies himself that to en a storage facility has not been registered as required or goods n m er have been kept without being reported as required under ov G subsection (2), the facility owner shall be liable to a penalty 25 20 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 and io s is is in control of the facility and possession of the storage m er tp facility or a person to whom the storage facility has been ou leased or sub-let to. ith w [s. 45A] ed ut rib st di PART VII or ed PRIMARY TAX LIABLITY uc od pr re Assessment and 57.–(1) An assessment of tax shall be made by way of be self-assessment ay self-assessment where a person liable to pay tax is obliged to m ok file a tax return. bo (2) A person other than the Commissioner General shall is th of not adjust any assessment. rt pa [s. 46] o d .N ve Jeorpady 58.–(1) The Commissioner General may make a jeopardy r se assessment re assessment of tax payable or has become payable by a person s Act No. ht under the respective tax law- rig 4 of 2017 s. 50 ll (a) whether or not the person is required to file a tax return, .A a ni in the circumstances specified in section 45(3); and za an (b) in any other case, where a person fails to file a tax return fT to on time. en m (2) The Commissioner General shall use best judgment and n er available information in making a jeopardy assessment. ov G (3) A jeopardy assessment may be valid for such period 25 20 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 . AG O assessment. of n (6) Where a jeopardy assessment covers the period or io s is events covered by a self-assessment of a person with respect m er tp to the same tax, any tax paid with respect to the jeopardy ou assessment shall be credited against tax payable with respect ith w to the self-assessment. ed ut rib (7) A jeopardy assessment shall be deemed to be made st di under the tax law which charges the person or subject matter or ed assessed. uc od re pr [s. 47] be Adjusted 59.–(1) The Commissioner General may adjust an assessment to ay assessment m ensure the taxpayer is liable for the correct amount of tax in the ok bo circumstances to which the assessment refers. is th (2) Where, in the opinion of the Commissioner General, of a taxpayer has failed to pay any of the tax payable by him by rt pa reason of- o d .N (a) his failure to keep proper books of accounts, records ver se or documents as required under a tax law, or the re s incorrectness of the books, records or documents; or ht rig (b) his failure to make, or delay in making any return ll a .A required under a tax law or the incorrectness or ni za inadequacy of any return, an fT the Commissioner General may assess the tax due and any to en interest payable on that tax both of which shall be due for n m er payment within one month of the date of the assessment, ov G unless a longer period is allowed by the Commissioner 25 20 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 io s is (c) in the case of an adjusted assessment, the date referred m er tp to in paragraph (a) or (b) of the original assessment ou that is adjusted. ith w (5) Notwithstanding subsection (4), there shall be no time ed ut rib limit on the Commissioner General to adjust an assessment in st di the case of fraud, wilful neglect or serious omission by or on or ed behalf of the taxpayer. uc od (6) The Commissioner General shall not adjust an re pr assessment that has been adjusted or reduced pursuant to be a decision of the Board or Tribunal under the Tax Revenue ay m Appeals Act or an order of the court of competent jurisdiction. ok Cap. 408 bo (7) An adjusted assessment shall cease to have effect to the is th extent to which it is adjusted. of rt (8) An adjusted assessment shall be deemed to be made under pa o .N the tax law which charges the person or subject matter assessed. d ve (9) In this section, “original assessment” means an r se re assessment that is not an adjusted assessment. s ht [s. 48] rig ll .A

60 — (1) Where the Commissioner General makes an

60.–(1) Where the Commissioner General makes an a Notice of ni za assessment assessment under a tax law, he shall serve a written notice an fT of the assessment on the taxpayer in a manner provided for to en under sections 41 and 42. n m (2) In addition to anything prescribed by the respective tax er ov law, a notice of assessment shall state- G 25 (a) the name of the taxpayer and the Taxpayer Identification 20 © 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. [s. 49] . AG O of PART VIII n io s is m DISPUTE RESOLUTION er tp ou ith Tax decisions 61.–(1) The Commissioner General may, subject to subsection w ed Act No. (2), make any tax decision including assessment or other ut 8 of 2020 s. 70 rib decision or omission on a matter left to the discretion, st di judgement, direction, opinion, approval, consent, satisfaction or ed or determination of the Commissioner General under a tax uc od law that directly affects a person. pr re (2) An assessment or decision made under subsection (1) be ay shall not include- m ok (a) a practice note or a decision or omission to issue, refuse bo or revoke a practice note; is th of (b) a decision or omission that affects a person as a tax rt pa officer or employee or agent of the Authority; o .N (c) the compoundment of an offence under any tax law; or d ve (d) any matter decided under any tax law on account of r se re agreement, consent or admission. s ht rig (3) A tax decision under this section is considered to have ll .A been made- a ni (a) in the case of self-assessment, on the due date of filing za an the tax return; fT to (b) in the case of other assessments, when the notice of en m assessment is served on the taxpayer; and n er ov (c) in the case of any other tax decision- G 25 (i) where the tax law specifies a time by which the 20 © 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 n tax return; io s is (b) in the case of other assessments, the notice of m er tp assessment or a document under the hand of the ou Commissioner General purporting to be a copy of the ith w notice; and ed ut rib (c) in the case of any other tax decision, a written st di notice of the decision under the hand of the or ed Commissioner General or a document under the uc od hand of the Commissioner General purporting to be a re pr memorandum of the decision. be [s. 50] ay m ok bo Objection to tax 62.–(1) A person who is aggrieved by a tax decision made by is th decisions the Commissioner General may object the decision by filing of Acts Nos. rt an objection to the Commissioner General within thirty days pa 2 of 2016 s. 56 o 8 of 2020 s. 71 from the date of service of the tax decision. .N 3 of 2021 s. 60 d (2) A person who has reasonable ground to warrant ver se extension of time to file an objection against a tax decision re s ht may apply for an extension of time. rig (3) Where the Commissioner General is satisfied by the ll a.A reason stated in the application made under subsection (2), ni za an he shall grant the extension of time and serve the notice of his fT decision to the applicant. to en (4) An objection to a tax decision shall be in writing stating n m er the grounds upon which it is made. ov G (5) An objection to a tax decision shall be accompanied by 25 20 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 . AG O decision whichever amount is greater. of n (8) Where the Commissioner General is satisfied that there io s is exist good reasons warranting reduction or waiver, he may m er tp waive the amount to be paid under subsection (5) or accept a ou lesser amount. ith w (9) Where a taxpayer files an objection and makes payment ed ut rib under subsection (5), the liability to pay the remaining assessed st di tax shall be suspended until the objection is finally determined. or ed (10) In this section, “tax not in dispute” with respect to an uc od assessment or any tax decision means- re pr (a) the amount that ought to be charged where the be assessment or a tax decision is amended in accordance ay m with the objection; and ok bo (b) the whole of duty or any tax assessed on imports. is th (11) Where the taxpayer fails to pay the amount stated of rt under subsection (7) within the time provided therein, the pa o .N assessed tax decision shall be confirmed as final tax assessment d ve Cap. 408 in terms of section 17(2)(a) of the Tax Revenue Appeals Act. r se re (12) Where the Commissioner General has reasonable s ht cause to believe that the objector intends to permanently leave rig ll the United Republic, the tax payable under subsection (7) shall .A a ni be the whole of the assessed tax. za an [s. 51] fT to en

63 — (1) The Commissioner General may, upon admission

63.–(1) The Commissioner General may, upon admission m Decisions on n er objection of an objection pursuant to section 62, make a decision by ov Acts Nos. G 4 of 2017 s. 51 determining the objection or call for any evidence or any other 25 20 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. . AG O (3) Where the Commissioner General- of n (a) intends to amend the assessment or other tax decisions io s is in accordance with the objection and any further m er tp evidence; or ou (b) decides to refuse to amend the assessment or other tax ith w decisions, ed ut rib he shall serve the objector with a notice setting out the reasons st di for the intention or decision. or ed (4) The objector shall, within thirty days from the receipt uc od of the notice pursuant to subsection (3), make submission in re pr writing to the Commissioner General on his agreement or be disagreement with the amended assessment or the refusal. ay m (5) The Commissioner General may, after the receipt of the ok bo submissions by the objector made pursuant to subsection (4)- is th (a) determine the objection in the light of the amended of rt assessment or refusal and any submission made by the pa o .N objector; or d ve (b) determine the objection partially in accordance with r se re the submission by the objector, s ht and proceed to issue a notice of final determination of rig ll objection. .A a ni (6) The provisions of section 53(1) relating to production za an of documents shall apply to submission of evidence or fT to information referred to in subsection (1). en m (7) The evidence or information referred to in subsection n er (1) shall be submitted within the time prescribed by the ov G Commissioner General in the notice: 25 20 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. . AG O (9) Where the objector fails to submit the document or of n information required by the Commissioner General in terms io s is of subsection (1) within the time prescribed or extended, such m er tp objector shall not be permitted to rely on such document or ou information at the time of hearing of an appeal. ith w (10) The Commissioner General shall determine an ed ut rib objection to a tax decision within six months from the date of st di admission of the notice of objection. or ed (11) Where the Commissioner General fails to determine uc od the objection within the time prescribed under subsection re pr (10), the tax assessment or tax decision shall be treated as be confirmed and the objector shall have the right to appeal to ay m the Board in accordance with the Tax Revenue Appeals Act. ok Cap. 408 bo [s. 52] is th of rt

64 — (1) A person who is aggrieved by an objection decision

64.–(1) A person who is aggrieved by an objection decision pa Appeal against o objection or other decision or omission of the Commissioner General .N decisions d under this Part may appeal to the Board in accordance with ver se the provisions of the Tax Revenue Appeals Act. re Cap. 408 s ht (2) Subsection (1) shall also apply to a decision or omission rig made under the customs law. ll .A a (3) For purposes of this section, the Board shall be ni Act No. za 1 of 2005 an deemed to be the Tax Appeals Tribunal established under fT [E.A.C.M.A] section 231 of the East African Community Customs to en Management Act. n m er [s. 53] ov G 25 20 © 329  THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023] PART IX PAYMENT AND RECOVERY OF TAX (a) Regular Payment of Tax .

65 — A taxpayer shall pay any tax

65. A taxpayer shall pay any tax- AG Time for paying O tax (a) at the time specified in the tax law under which the tax of Acts Nos. n io 4 of 2017 s. 52 is charged; s is 7 of 2017 s. 45 m (b) in the case of tax payable- er tp (i) on a jeopardy assessment under section 58, on the ou ith date specified in the notice of assessment served w ed under section 60; or ut rib (ii) on an adjusted assessment under section 59, within st di thirty days from the date on which the person or ed assessed is served with a notice of assessment uc od under section 60; pr re (c) in the case of interest and penalties under Part XI, on be ay the date specified in the notice of assessment served m ok under section 92; bo (d) with respect to amount required to be paid to the is th of Commissioner General under section 73(9), 78(2), rt pa 80(2) or (5), on the date set out in the notice; o .N (e) with respect to a liability under section 76, at the time d ve the tax is payable by the entity; r se re (f) with respect to amounts required to be paid to the s ht rig Commissioner General under section 77(3) or (4), ll .A seven days after the sale from which the amount is set a ni aside or the failure to set aside, respectively; za an (g) with respect to amount required to be paid to the fT to Commissioner General under section 79(7), on the en m date provided for in the security; or n er ov (h) with respect to additional profits tax payable under G 25 any arrangement or agreement, shall be paid to the 20 © 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. . AG O (3) The Commissioner General shall serve the applicant of n with written notice of the decision on the application. io s is (4) Where an extension is granted by permitting the m er tp taxpayer to pay tax by instalments and the taxpayer has ou defaulted in paying any of the instalments, the whole balance ith w of the tax outstanding plus the interest shall become payable ed ut rib immediately. st di [s. 55] or ed uc

67 — (1) A taxpayer shall pay tax

67.–(1) A taxpayer shall pay tax- od Manner and place of paying tax pr (a) at any tax office; re Act No. be 3 of 2021 s. 61 (b) at any bank approved for that purpose by the ay m Commissioner General; ok bo (c) through a mobile phone payment system; or is th (d) in the case of property rate, at the time of payment for of rt electricity: pa o Provided that, the property rate in respect of rateable d .N properties not connected with electricity, shall be paid in ver se accordance with subsection (1)(a), (b) or (c) of this section. re s ht (e) in any other manner prescribed by the Commissioner rig General. ll a .A (2) Where a taxpayer pays tax in accordance with subsection ni za an (1), he shall notify the tax office where the taxpayer is registered fT of the payment: to en Provided that, the requirements of this subsection shall not n m er apply to a taxpayer who pays property rate under subsection ov G (1)(d). 25 20 (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. 56] io s is m er Order of paying 68. Where a taxpayer has tax payable under one or more tp ou tax tax laws and makes payment less than the total outstanding ith w amount, the Commissioner General may, notwithstanding the ed ut system established under section 69, determine the amount of rib st tax to be considered as the paid amount. di or [s. 57] ed uc od

69 — (1) The Commissioner General may establish and operate

69.–(1) The Commissioner General may establish and operate Taxpayer’s pr re accounts an electronic system of taxpayer’s account. be ay (2) The system may be established and operated separately m ok or as part of the electronic document system established under bo is section 42. th of (3) For the better carrying out of the purpose of this section, rt pa the Commissioner General may make rules prescribing- o .N (a) when the tax becomes payable; d ver (b) the tax paid; and se re (c) other matters similar to matters described under s ht rig section 42. ll .A [s. 58] a ni za an (b) Recovery of Tax from Taxpayer fT to

70 — Where

70. Where- en Suit for unpaid m tax (a) payment of any tax has not been made on or before the n er ov due date; or G 25 (b) a notice which has been served to any person under 20 © 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 . AG O (c) not forming part of the estate in liquidation or of n bankruptcy proceedings of the agent. io s is (2) The Commissioner General shall have a first claim m er tp over the tax or assets before any distribution in liquidation or ou bankruptcy of a withholding agent is made. ith w [s. 60] ed ut rib

72 — (1) Where a taxpayer fails to pay tax on time, the

72.–(1) Where a taxpayer fails to pay tax on time, the st Charge over di or assets Commissioner General may create a charge in favour of the ed uc Government over assets owned by that taxpayer. od pr (2) The Commissioner General shall be considered to re be have created the charge if he serves the taxpayer with a notice ay in writing specifying the taxpayer’s name and Taxpayer m ok Identification Number, the assets charged, the extent of the bo is charge, the tax to which the charge relates and details regarding th of the Commissioner General’s power of sale under section 73. rt pa (3) The assets of a taxpayer shall be charged to the extent of o .N the unpaid tax, interest accruing with respect to that tax under d ver section 87 and any costs of charge and sale. se re (4) A charge created under subsection (2) shall not have s ht rig effect until- ll .A (a) where an interest in land or buildings is charged, the a ni za Commissioner General files an application to register an fT the charge under subsection (6); and to en (b) in any other case, the notice creating the charge is n m served on the taxpayer. er ov (5) A charge shall be released when the taxpayer pays G 25 in full the amounts referred under subsection (3) to the 20 © 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 of n transaction taxes. io s is (9) The Commissioner General may serve on a taxpayer a m er tp notice in writing- ou (a) specifying any costs of charge and sale with respect to ith w assets of the taxpayer incurred by the Commissioner ed ut rib General prior to the date of service; and st di (b) requiring the taxpayer to pay such costs to the or ed Commissioner General by the date specified in the uc od notice. re pr [s. 61] be ay m Sale of charged 73.–(1) The Commissioner General shall serve a taxpayer with ok bo assets written notice of intention to sell charged assets owned by is th such taxpayer. of rt (2) The notice served under subsection (1) may accompany pa o a notice referred to under section 78 and it shall specify- d .N (a) the taxpayer’s name and Taxpayer Identification ver se Number; re s ht (b) the charged assets, the Commissioner General’s rig intention to sell those assets and the proposed method ll .A a and timing of sale; and ni za an (c) in the case of tangible assets that the Commissioner fT General intends to take possession of, the manner in to en which and place at which the possession will take place. n m er (3) In exercising his powers under subsection (1), the ov G Commissioner General- 25 20 (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; . AG O (d) shall, at the time of taking possession, provide the of n taxpayer with an inventory of assets seized; and io s is (e) in the case of movable assets, may store the assets, at the m er tp cost of the taxpayer, at any place that the Commissioner ou General considers appropriate. ith w (4) The Commissioner General shall, after serving a ed ut rib taxpayer with a notice under subsection (1), sell the charged st di assets by public auction. or ed (5) The sale under subsection (4) shall not take place before- uc od (a) in the case of an interest in land or buildings, thirty re pr days after taking possession; be (b) in the case of perishable goods, one day after taking ay m possession; ok bo (c) in the case where charged assets are tangible assets is th other than assets referred to under paragraph (a) and of rt (b), fourteen days after taking possession; and pa o .N (d) in any other case, ten days after the service of the notice d ve under subsection (1). r se re (6) The proceeds of sale shall be used to pay- s ht (a) the costs of charge and sale of the assets sold; rig ll (b) the outstanding tax and interest accrued with respect .A a ni to that tax under section 87; and za an (c) any other unpaid tax. fT to (7) The Commissioner General shall, after disbursing en m proceeds for sale pursuant to subsection (6), serve the taxpayer n er with a written notice stating the manner in which the sale ov G proceeds were applied. 25 20 (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 Subpart (c). . AG O (10) This section shall not be construed to restrict the of n exercise of any rights that the Commissioner General has over io s is a security created under section 71 or 72. m er tp (11) The activities of the Commissioner General under ou this section shall be exempted from stamp duty and any other ith w transaction taxes. ed ut rib [s. 62] st di or

74 — (1) Where a person fails to pay tax on time and such person

74.–(1) Where a person fails to pay tax on time and such person ed Restraint of uc person is likely to flee from the United Republic, the Commissioner od pr General may, by notice in writing or any other means of official re be communication to the Director of Immigration Services, order ay m the Director of Immigration Services to prevent that person ok bo from leaving the United Republic. is th (2) The Director of Immigration Services shall, on receiving of rt the notice, prevent the person from leaving the United Republic pa o for a period of fourteen days from the date the notice is served. d .N (3) The Commissioner General shall, where the person ver se pays the tax or arranges for payment in a manner satisfactory re s ht to him, withdraw a notice issued under subsection (1). rig (4) The High Court may, on application by the Commissioner ll a .A General, extend the period referred under subsection (2). ni za an [s. 63] fT to en Restraint of assets 75.–(1) The Commissioner General may, subject to n m Act No. er subsection (2)- ov 4 of 2017 s. 53 G (a) restrain the goods, vehicle, vessel or any other asset; 25 20 (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- . AG O (a) the value added tax has not been paid in respect of the of n supply or import of goods; io s is (b) a vehicle contains any fuel on which road and fuel tolls m er tp has not been paid; ou (c) transit charges have not been paid with respect to a ith w foreign vehicle; ed ut rib (d) motor vehicle registration or transfer tax has not been st di paid with respect to a vehicle; or ed (e) section 44(1) or a provision of any tax law has been uc od breached; or re pr Cap. 147 (f) any provision of the Excise (Management and Tariff) be Act has been breached with respect to excisable goods. ay m (3) The Commissioner General may exercise the powers ok bo referred to under subsection (1) in conjunction with any other is th powers of the Commissioner General granted under this Act. of rt (4) Where the Commissioner General has restrained an pa o .N asset under subsection (1), he shall- d ve (a) serve a written notice to the possessor of the asset; or r se re (b) in the absence of the possessor, leave the notice at the s ht premises or place where the restraining takes place. rig ll (5) The notice shall- .A a ni (a) identify and list the assets restrained; za an (b) state that the assets have been restrained under this fT to section and the reason for the restraint; and en m (c) set out the conditions for release and terms for disposal n er of any assets seized. ov G (6) The Commissioner General may restrain an asset for a 25 20 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] . AG (c) Recovery from Third Parties O of

76 — (1) Subject to subsection (2), where an entity fails to pay tax

76.–(1) Subject to subsection (2), where an entity fails to pay tax n Liability of io s managers of is on time, a manager or a person who was the manager of that m entities er entity during the time of accurence of the default shall be jointly tp Acts Nos. ou 4 of 2018 s. 64 and severally liable with the entity for payment of the tax. ith 5 of 2022 s. 111 w (2) The provisions of subsection (1) shall apply where the ed ut default which occurred was due to fraud as it shall be proved rib st di in a court of law. or (3) Where a person pays tax under subsection (1)- ed uc (a) that person may recover the payment from such entity; od pr re (b) for the purposes of paragraph (a), the person may be retain out of any assets of the entity in or coming into ay m the possession of the person an amount not exceeding ok bo the payment; and is th (c) no claim may be made against that person by the entity of rt or any other person with respect to the retention. pa o [s. 65] d .N ver se Receivers 77.–(1) A person who has been appointed to be a receiver re s shall notify the Commissioner General of his appointment in ht rig writing within fourteen days from being appointed or taking ll .A possession of an asset situated in the United Republic. a ni za (2) The Commissioner General may serve a receiver with an fT a notice in writing specifying an amount that appears to be to en sufficient to provide for any tax due or that will become due by n m the taxpayer whose assets come into the receiver’s possession. er ov G (3) After receiving a notice under subsection (2), a receiver- 25 20 (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 of n may recover any amount paid from the taxpayer. io s is (5) For purposes of this section- m er tp “receiver” means any person who, with respect to an asset ou situated in the United Republic, is- ith w (a) a liquidator of an entity; ed ut rib (b) a receiver appointed out of court or by a court in respect st di of an asset or entity; or ed (c) a trustee for a bankrupt person; uc od (d) a mortgagee in possession; re pr (e) an executor or administrator of a deceased individual’s be estate; or ay m (f) conducting the affairs of an incapacitated individual. ok bo [s. 66] is th of rt

78 — (1) Where a taxpayer fails to pay tax on time, the

78.–(1) Where a taxpayer fails to pay tax on time, the pa Third party o debtors and Commissioner General may serve on the third party debtor .N guarantors d who owes money to that taxpayer a notice in writing requiring ver se that person to pay the money to the Commissioner General. re s ht (2) The third party debtor shall, upon the receipt of the rig notice under subsection (1), pay the money equivalent to ll .A a the amount of tax due to the Commissioner General on the ni za an account of the taxpayer’s tax liability and on the date specified fT in the notice. to en (3) The date specified in the notice shall not be before- n m er (a) the date the money becomes payable to the taxpayer or ov G is held on behalf of the taxpayer; or 25 20 (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 O taxpayer: of n (a) money currently owing or that may subsequently io s is become owing to the taxpayer; m er tp (b) money held or that may subsequently be held for or on ou account of the taxpayer; ith w (c) money held or that may subsequently be held on ed ut rib account of a third person for payment to the taxpayer; st di and or ed (d) money held by a person who has authority from a third uc od person to pay the money to the taxpayer. re pr [s. 67] be ay m Compliance with 79.–(1) A third party debtor or guarantor who pays the ok bo notice or security Commissioner General pursuant to section 78 shall be treated is th as having acted with the authority of the taxpayer. of rt (2) A notice served under section 78 shall cease to have pa o effect once the tax referred to is paid or otherwise satisfied. d .N (3) Where a third party debtor who is served with a notice ver se under section 78 is unable to comply with the notice by reason re s ht of lack of money owing to, or held for the taxpayer, such third rig party debtor shall notify the Commissioner General on his ll a .A inability to pay. ni za an (4) The notice under subsection (3) shall be- fT (a) in writing setting out the reasons for the inability; and to en (b) filed with the Commissioner General within seven n m er days from the notice issued under section 78 after the ov G third party debtor becomes aware of the inability. 25 20 (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 . AG O specified in a notice within thirty days of the date- of n (a) of service of such notice in him; or io s is (b) on which any money comes into his hands or becomes m er tp due by him to his tax debtor whichever event is the ou latter and the payer has- ith w (i) not given a notification under subsection (3) of ed ut rib this section; or st di (ii) given such notification which has been rejected by or ed the Commissioner General, uc od the provisions of this Act relating to recovery of tax shall re pr apply to the collection and recovery of such amount as if it be were tax due and payable by the third party debtor, the due ay m date for the payment of which was the date upon which such ok bo amount should have been paid to the Commissioner General is th under this section. of rt [s. 68] pa o d .N

80 — (1) Where

80.–(1) Where- ve Agents of r se non-residents (a) a non-resident taxpayer fails to pay tax on time; or re s ht (b) the Commissioner General has good reasons to believe rig that a non-resident taxpayer shall not pay tax on time, ll .A a the Commissioner General may, by notice in writing, ni za an require the agent who is in possession of an asset owned fT by the non-resident taxpayer to pay tax on behalf of that to en taxpayer. n m er (2) An agent shall, without prejudice to subsection (1), be ov G required to pay tax up to the market value of the asset but not 25 20 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. . AG O (5) The resident partnership and any resident partner shall of n be jointly and severally liable to pay the tax up to the amount io s is of the non-resident partner’s share in the net assets of the m er tp partnership. ou (6) Where a person makes payment to the Commissioner ith w General pursuant to a notice issued under subsection (1) or ed ut rib (4) that- st di (a) person may recover the payment from the taxpayer or or ed non-resident partner; uc od (b) person may for the purposes of paragraph (a), retain out re pr of any assets of the taxpayer or non-resident partner in be or coming into the possession of the person an amount ay m not exceeding the payment; and ok bo (c) taxpayer, non-resident partner or any other person, is th may not make a claim against the person with respect of rt to the retention. pa o .N [s. 69] d ver se PART X re s ht rig REMISSION AND REFUND OF TAX ll .A a ni

81 — Where the Commissioner General is satisfied that there is

81. Where the Commissioner General is satisfied that there is za Remission of an interest and good cause to remit interest or penalty imposed under any tax fT penalty to law, he may remit the whole or part of the interest or penalty en Acts Nos. m 2 of 2016 s. 57 payable by that person. n er 4 of 2017 s. 54 ov 4 of 2018 s. 65 [s. 70] G 25 3 of 2021 s. 62 20

82 — (1) A person may apply to the Commissioner General for

82.–(1) A person may apply to the Commissioner General for © Application 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. . AG O [s. 71] of n io s

83 — (1) The Commissioner General shall consider and make a

83.–(1) The Commissioner General shall consider and make a is Decision on m er application refund decision on an application made under section 82 within tp ou ninety days from the date of the receipt of the application. ith w (2) The Commissioner General may make the appropriate ed ut decision without limiting his discretion- rib st (a) where he is of the opinion that the applicant has not di or paid excess tax, reject the application; ed uc (b) where he is not satisfied that the applicant has paid od pr excess tax- re be (i) request for further information as may be ay m reasonable in order to make a final decision on the ok bo application; or is th (ii) refund the money paid in the excess subject to the of rt application; or pa o (c) where he is satisfied that the applicant has paid excess d .N tax, to refund to the extent to which the Commissioner ver se General is satisfied. re s ht (3) The Commissioner General shall serve the applicant rig with a written notice of the refund decision within the time ll .A a prescribed in subsection (1). ni za an (4) Where the Commissioner General makes a decision fT under subsection (2)(b), the Commissioner General shall to en reconsider the application after the applicant provides the n m er information or where the applicant rejects the offer. ov G (5) The Commissioner General shall serve the applicant 25 20 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 O decision. of n (2) Where the Commissioner General accepts a taxpayer’s io s is refund application in part, he shall refund the amount accepted. m er tp (3) Where the Commissioner General refunds an amount of ou tax to a person, he shall be liable to pay that person an interest ith w in accordance with the provisions of the relevant tax law. ed ut rib (4) The interest under this section shall be calculated at the st di statutory rate and shall be for the period commencing on the or ed date the refund decision is issued and ending on the day the uc od refund is made. re pr (5) The interest paid by a person under a tax law with respect be to tax which has not been paid on time shall, to the extent that ay m the tax is found to have been paid, be refunded to that person ok bo with any interest at the rate stipulated under subsection (4). is th (6) The Commissioner General shall maintain a separate of rt bank account and ensure that there are sufficient funds in that pa o .N account for the purposes of this section. d ve [s. 73] r se re s

85 — (1) Where any duty or tax has been short-levied or

85.–(1) Where any duty or tax has been short-levied or ht Short levy or rig erroneous refund erroneously refunded, a person who ought to have paid the ll .A Act No. a amount short-levied or to whom the refund has erroneously ni 3 of 2021 s. 63 za an been made, shall, on demand by the Commissioner General, fT pay the amount short-levied or repay the amount erroneously to en refunded. n m er (2) The amount referred under subsection (1) may be ov G recovered as if it were a tax in relation to which the amount 25 20 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 O PART XI of n INTEREST, PENALTIES AND OFFENCES io s is m er (a) Interest tp ou ith Interest for under 86.–(1) The amount of interest that an installment payer shall w ed estimating tax pay for each period under subsection (4), shall be calculated ut payable rib Act No. at the statutory rate compounded monthly, applied to the st di 4 of 2017 s. 56 excess of- or ed (a) the total amount of income that would have been paid uc od by way of installments during the year of income to the re pr start of the period had the person’s estimate or revised be ay estimate equaled the correct amount; over m ok (b) the amount of income tax paid by installments during bo the year of income to the start of the period. is th (2) For purposes of calculating interest payable under of rt pa subsection (1), any extension granted under section 48 or o .N 66 or suspension under section 62(7) shall not be taken in d ve consideration. r se re (3) This section applies where an instalment payer’s estimate s ht or revised estimate of income tax payable for a year of income rig ll .A Cap. 332 under section 113 of the Income Tax Act is less than eighty a ni percent of the correct amount. za an (4) Where this section applies, the instalment payer shall be fT to liable for interest for each month or part of a month from the en m date the first instalment for the year of income is payable until n er ov the due date by which the person shall file a return of income for G 25 Cap. 332 the year of income under section 117(1) of the Income Tax Act. 20 © (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 . AG O subsection (1), any extension granted under section 48 or 66 of n or suspension under section 62(7) shall not be applied. io s is (3) A withholding agent may not recover from a withholdee m er tp an interest payable by the agent in respect of a failure to comply ou with section 104, 105 or 106 of the Income Tax Act. ith Cap. 332 w (4) Interest payable under this section or under any other ed ut rib tax law shall not be affected or waived for the reason of delay st di due to court proceedings or any other dispute resolution or ed process. uc od re pr [s. 76] be (b) Penalties ay m ok bo

88 — (1) A person who fails to maintain proper documents as

88.–(1) A person who fails to maintain proper documents as is Penalty for failing th to maintain required by a tax law is liable for a penalty for each month or of documents rt pa part of a month during which the failure continues. o .N (2) The penalty shall, in the case of an individual, be 1 currency d ve point or, in the case of a body corporate be 10 currency points. r se re (3) The Commissioner General shall determine tax s ht attributable to a period on a just and reasonable basis including rig ll .A apportioning tax assessed with respect to a larger period or by a ni reference to taxable events happening within the period. za an [s. 77] fT to en m Penalty for failing 89.–(1) A person who fails to file a tax return or pay tax on n er to file tax return due date as required by a tax law is liable for a penalty for each ov G month or part of a month during which the failure continues. 25 20 (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 . AG O to file a tax return incorporating the final amount. of n [s. 78] io s is m er Penalty for 90.–(1) A person is liable for a penalty if he- tp ou making false (a) makes a statement to a tax officer which is false or ith or misleading w statements misleading in a material particular; ed ut Act No. (b) omits to include in the statement made to the tax officer, rib 3 of 2021 s. 64 st any matter or thing without which the statement is di or misleading in a material particular; or ed uc (c) entered into controlled transactions or series of controlled od pr transactions and fails to determine the income and re be expenditure resulting from the transaction in a manner ay m that is inconsistent with arms length principle. ok bo (2) The penalty shall be- is th (a) where the statement or omission is made without of reasonable excuse, fifty percent of the tax shortfall; rt pa (b) where the statement or omission is made knowingly or o d .N recklessly, seventy five percent of the tax shortfall; or ver se (c) for a person who has contravened subsection (1)(c), re s one hundred percent of the tax shortfall. ht rig (3) Notwithstanding subsection (2), the penalty shall be- ll .A a (a) increased by ten percent for the second or subsequent ni za application of this section to the person; and an fT (b) reduced by ten percent if the person voluntarily to en discloses the statement prior to its discovery by the tax n m er officer or the next tax audit of the person. ov G (4) A statement shall be considered to have been made to 25 20 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 . AG O expectation that the statement shall be passed to the of n tax officer. io s is (5) A person who contravenes section 24(3) or 25(5) shall m er tp be considered to have made a false or misleading statement to ou a tax officer. ith w [s. 79] ed ut rib st

91 — A person who aids, abets, counsels or induces another

91. A person who aids, abets, counsels or induces another di Penalty for aiding or and abetting person to commit an offence on conviction shall be liable for a ed uc penalty equal to one hundred percent of the tax shortfall. od pr [s. 80] re be ay m (c) Assessment of Interest and Penalties ok bo is th Assessment of 92.–(1) The Commissioner General shall assess the interest of rt interest and and penalties for which a person is liable under this Part. pa penalties o .N Acts No. (2) Liability for interest and penalties under this Part d ve 4 of 2017 s. 58 with respect to a particular failure or statement is calculated r se separately for each section of this Part. re s ht (3) The imposition of interest and penalties under this Part rig ll is in addition to any other tax imposed by a tax law and does .A a ni not relieve any person from liability to criminal proceedings. za an (4) Where a particular failure or statement incurs interest fT to or a penalty both under this Act and any other tax law, the en m Commissioner General shall assess the person under a tax law n er with the higher rate of interest or penalty. ov G (5) Where an assessment is made under this section, the 25 20 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 of n assessment. io s is (6) An assessment made under this section is an original m er tp assessment for the purposes of section 59. ou [s. 81] ith w ed ut rib (d) Offences st di or ed Offence for failing 93. Notwithstanding the provisions of a tax law relating to uc od to comply with tax law offence, a person who fails to comply with a provision of a tax re pr Act No. law commits an offence and on conviction shall be liable- be 5 of 2022 s. 112 ay (a) where the failure results or, if undetected may have m ok resulted in an underpayment of tax in an amount bo exceeding 50 currency points, to a fine of not less than is th 20 currency points and not more than 50 currency of rt pa points, or to imprisonment for a term of not more than o .N six months, or to both; and d ve (b) in any other case, to a fine of not less than 10 currency r se re points and not more than 20 currency points. s ht [s. 82] rig ll a .A ni Offence for failing 94. A person who fails to pay any tax on, or before the date on za an to pay tax which the tax is payable commits an offence and on conviction fT to shall be liable- en m (a) where the failure is to pay tax in excess of 50 currency n er points, to a fine of not less than 25 currency points and ov G not more than 100 currency points or imprisonment 25 20 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. [s. 83] . AG O of

95 — (1) A person who, in any matter relating to any tax laws set

95.–(1) A person who, in any matter relating to any tax laws set n Offence for io s making or is out under Part A of the First Schedule to the Tanzania Revenue m using false or er Authority Act- tp misleading ou statements or (a) makes any entry of any building, room, place, or item ith documents w of a plant, which is false or incorrect in any material ed Cap. 399 ut Act No. particular; rib 2 of 2016 s. 58 st (b) makes or causes to be made any declaration, certificate, di or application, return, account, or other document, which ed uc is false or incorrect in any material particular; od pr (c) when required to answer any question put to that re be person by an officer, refuses to answer such question or ay m makes any false or incorrect statement in reply thereto; ok bo (d) is in any way involved in any fraudulent evasion of the is th payment of any tax; of rt (e) obtains any remission, rebate or refund of tax which he pa o is not entitled to obtain; d .N (f) makes any false statement or false representation in ver se order to obtain any remission, rebate, refund of tax or re s ht any tax benefit; rig (g) acquires possession of, keeps, conceals, removes or in ll .A a any way deals with, any excisable goods or any taxable ni za an goods which have been manufactured or supplied fT without payment of the full tax; to en (h) counterfeits or in any way falsifies or uses when n m er counterfeited or in any way falsified, any document ov G required or issued by or used for the purpose of the tax; 25 20 (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. . AG O (2) A person who in any matter relating to any tax law- of n (a) makes a statement to a tax officer which is false or io s is misleading in material particular; or m er tp (b) omits to include in the statement made to a tax officer, ou any matter or thing without which the statement is ith w misleading in material particular, ed ut rib commits an offence. st di (3) The person who commits an offence under this section or ed on conviction shall be liable,- uc od (a) where the statement or omission is made without re pr reasonable excuse- be (i) and, if the inaccuracy of the statement is undetected, ay m and may have resulted in an underpayment of tax in ok bo an amount exceeding 50 currency points, to a fine of is th not less than 25 currency points and not more than of rt 100 currency points or imprisonment for a term of pa o .N not less than three months and not more than one d ve year, or to both; and r se re (ii) in any other case, to a fine of not less than 10 s ht currency point and not more than 25 currency rig ll points or imprisonment for a term of not less than .A a ni one month and not more than three months, or to za an both; or fT to (b) where the statement or omission is made knowingly or en m recklessly- n er (i) and, if the inaccuracy of the statement is undetected, ov G and may have resulted in an underpayment of tax in 25 20 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 of n to be false or misleading in material particular, the provisions io s is of section 90(4) and (5) shall apply. m er tp [s. 84] ou ith w

96 — (1) A person who impedes or attempts to impede the

96.–(1) A person who impedes or attempts to impede the ed Offence for ut impeding tax administration of a tax law commits an offence. rib administration st (2) The person who commits an offence under this section di Act No. or 3 of 2021 s. 65 on conviction shall be liable- ed uc (a) where the offence involves fraud or undue force, to od pr a fine of twice the amount sought to be evaded or re be recovered or 200 currency points, whichever is greater ay m or imprisonment for a term of not less than two years ok bo and not more than four years, or to both; and is th (b) in any other case, to a fine of not less than 10 currency of rt points and not more than 200 currency points or pa o imprisonment for a term of not more than two years, d .N or to both. ver se (3) In this section, “impeding administration of a tax law” re s ht includes- rig (a) where a tax officer is acting in the performance of duties ll .A a under a tax law, assaulting, obstructing or attempting ni za an to assault or obstruct the officer or interfering with any fT asset used by the officer; to en (b) failing to comply with a notice under section 53 or n m er answer truthfully when being interrogated under ov G section 109; 25 20 (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 s is (h) disguising, warning or hiding a person with the intent m er tp that a liability, obligation or arrest of any person under ou a tax law is evaded; ith w (i) committing any offence under a tax law where the ed ut rib person has already been convicted of an offence st di under a tax law or had an offence compounded under or ed section 106; uc od (j) refusal to produce documents; re pr (k) destroying, damaging, cutting away, casting adrift, be defacy or interfering with any instrument or a property ay m used for the purpose of tax authority; ok bo (l) failure to produce official translation of the is th communication or document which is in a language of rt other than official language; pa o .N (m) failure to maintain a primary data server in the United d ve Republic as required by section 43; r se re (n) uses, keeps, or provides, any false or unjust scales, s ht weighing or measuring instruments, weights or rig ll measures; or a .A ni (o) by any means prevents or contrives to prevent, the za an proper officer from taking a just and true account or fT to making proper examination of any excisable goods or en m materials. n er [s. 85] ov G 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; . AG O (d) uses fiscal device in any manner that misleads the of n system or the Commissioner; or io s is (e) tempers with or causes fiscal device to work improperly m er tp or in a manner that does not give a correct or true ou document, ith w commits an offence and on conviction shall be liable to a fine of ed ut rib twenty percent of the value of goods sold or service rendered or st di 100 currency points, whichever is greater or to imprisonment or ed for a term not exceeding three years or to both. uc od (2) The provisions of subsection (1) shall not apply to a re pr person who is exempted by any tax law to acquire or use fiscal be device. ay m (3) Where any amount of tax has been evaded in any of ok bo the offence referred to in subsection (1), a person involved on is th conviction shall be liable in addition to a fine under subsection of rt (1), a fine twice the amount of tax evaded or imprisonment for pa o .N a term not exceeding three years. d ve (4) A person who fails to demand or report a denial of r se re issuance of a fiscal receipt upon payment or receipt of goods or s ht service, commits an offence and on conviction shall be liable to rig ll a fine of twenty percent of the tax evaded or 2 currency points, .A a ni whichever is greater. za an [s. 86] fT to en

98 — (1) A person authorised by the Authority to perform any

98.–(1) A person authorised by the Authority to perform any m Offences by n er authorised and function or carry on any duty under a tax law commits an ov unauthorised G persons offence where that person- 25 20 Act No. (a) directly or indirectly asks for or takes in connection © 5 of 2022 s. 114 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 . AG O commits an offence if that person- of n (a) collects or attempts to collect an amount of tax payable io s is under a tax law or an amount which that person m er tp describes as tax; or ou (b) makes representations with the intent to make another ith w person to believe that, that person is a tax officer. ed ut rib (3) A person who commits an offence under subsection (1) st di or (2) on conviction shall be liable to a fine of not less than 200 or ed currency points or to imprisonment for a term of not less than uc od twelve months and not more than five years, or to both. re pr (4) A person who contravenes section 25 commits an offence be and on conviction shall be liable to a fine not exceeding 100 ay m currency points or to imprisonment for a term not exceeding ok bo one year, or to both. is th (5) A person who is required to be registered or licensed of rt under a tax law to perform any function and fails to apply for pa o .N such registration or licensing within the period prescribed d ve by law or as may be notified by the Commissioner General r se re commits an offence and on conviction shall be liable to a fine s ht not exceeding 500 currency points or to imprisonment for a rig ll term not exceeding one year or to both. .A a ni [s. 87] za an fT

99 — (1) Where an entity has committed an offence under a tax

99.–(1) Where an entity has committed an offence under a tax to Offences by en entities law, every person who is a manager of the entity at the time of n m er commission of that offence shall be treated to have committed ov G that offence. 25 20 (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

101 — (1) A person who commits an offence under this Act for

101.–(1) A person who commits an offence under this Act for O General penalty of Act No. which no specific penalty is provided, on conviction shall be n io 2 of 2016 s. 60 s is liable to a fine of not less than 200 currency points and not m er more than 300 currency points or to imprisonment for a term tp ou not exceeding three years or to both. ith w (2) Where any amount of tax evaded in any of the offence ed ut referred to in subsection (1), a person involved shall on rib st conviction be liable, in addition to a fine under subsection (1), di or a fine twice the amount of tax evaded or imprisonment for a ed uc term not exceeding three years. od pr [s. 88B] re be ay

102 — A person who aids, abets, counsels or induces another

102. A person who aids, abets, counsels or induces another m Offence for aiding ok or abetting person to commit an offence under a tax law commits an bo is offence and on conviction shall be liable- th of (a) where the original offence involves a statement of the rt pa kind prescribed in section 95(1) and, if the inaccuracy o d .N of the statement were undetected, may have resulted ver se in an underpayment of tax to a fine of not less than re s 100 currency points and not more than 200 currency ht rig points, or to imprisonment for a term of not less than ll .A one year and not more than two years, or to both; a ni za (b) where the original offence involves inducing an an fT authorised person to commit an offence under section to en 98, to a fine of not less than 200 currency points, or to n m er imprisonment for a term of not less than twelve months ov G and not more than five years, or to both; or 25 20 (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 . AG O Cap. 148 Value Added Tax Act; of n (c) fails to notify the Commissioner General of a change in io s is circumstances as required under the Value Added Tax m er tp Cap. 148 Act; ou (d) fails to notify the Commissioner General of the change ith w in interest or ownership of property or control of ed ut rib business by reason of death, bankruptcy, winding- st di up or other legal process that vests in another person or ed interest or ownership of property as required under the uc od Cap. 148 Value Added Tax Act; re pr (e) fails to notify the Commissioner General of a transfer be as required under the Value Added Tax Act; or ay Cap. 148 m (f) holds himself out as a taxable person under the Value ok bo Cap. 148 Added Tax Act, where that person is not. is th (2) The person who commits an offence under this section of rt on conviction shall be liable- pa o .N (a) where the failure or holding out is made knowingly d ve or recklessly, to a fine of not less than 100 currency r se re points and not more than 200 currency points or to s ht imprisonment for a term of not less than one year and rig ll not more than two years, or to both; or .A a ni (b) in any other case, to a fine of not less than 50 currency za an points and not more than 100 currency points or to fT to imprisonment for a term of not less than one month en m and not more than three months, or to both. n er [s. 90] ov G 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 Duty Act; . AG Cap. 189 O (e) executes or assists in the preparation of an instrument of n that breaches the requirements of the Stamp Duty Act; io Cap. 189 s is (f) fails to give a receipt that is properly stamped as m er tp Cap. 189 required under the Stamp Duty Act; ou (g) is a person appointed to sell stamps who disobeys a ith w lawful direction given by the Commissioner General; ed ut rib (h) is not a person appointed to sell stamps but the person st di sells or offers for sale, other than by way of surrender or ed to a stamp duty officer, any stamp other than adhesive uc od stamps each of the value of fifty cents or less; or re pr (i) fails to comply with the terms of any composition be agreement made under the Stamp Duty Act. ay Cap. 189 m (2) The person who commits an offence under this section ok bo on conviction shall be liable- is th (a) where the action or failure is made knowingly or of rt recklessly, to a fine of not less than 100 currency pa o .N points and not more than 200 currency points or d ve imprisonment for a term of not less than one year and r se re not more than two years, or to both; or s ht (b) in any other case, to a fine of not less than 20 currency rig ll points and not more than 50 currency points or .A a ni imprisonment for a term of not less than one month za an and not more than three months, or to both. fT to [s. 91] en n m er

105 — (1) A person who, contrary to the provisions of the Excise

105.–(1) A person who, contrary to the provisions of the Excise ov Excise duty G offences (Management and Tariff) Act- 25 Act No. 20 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 . AG O thereof; of n (d) fails to keep records with respect to manufacture, io s is storage and delivery of excisable goods at his factory or m er tp place of work in the prescribed manner; ou (e) denatures spirits for sale without being licensed by ith w the licensing authority and adopting the prescribed ed ut rib formula; st di (f) fails to make entry or declaration, before commencing or ed manufacture of excisable goods, of each building, uc od room, place, machinery or equipment, item of plant re pr for the manufacture, preparation for sale or storage of be excisable goods; ay m (g) makes use of any building, room, place, machinery or ok bo equipment or item of plant for manufacture, preparation is th for sale or storage of excisable goods without a valid of rt entry; pa o .N (h) makes use of a building, room, place, machinery or d ve equipment or item of manufacture, preparation for sale r se re or storage of excisable goods for purpose other than s ht that declared in the approved entry; or rig ll (i) effects alteration in shape, position, or capacity of a .A a ni building, room, place of manufacture or preparation za an for sale or storage of excisable goods without prior fT to permission of the Commissioner, en m commits an offence and on conviction, shall be liable to a fine n er not exceeding 330 currency points or to imprisonment for a ov G term not exceeding three years or to both. 25 20 (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. io s is [s. 91A] m er tp ou Compounding of 106.–(1) Where a person commits an offence under a tax ith w offences law, the Commissioner General may compound the offence ed Act No. ut and may order a person to pay the fine that would have been rib 2 of 2016 s. 61 st paid had such person been prosecuted and convicted for the di or offence or order forfeiture of any goods related to the offence ed uc or to both. od pr (2) The Commissioner General shall not compound an re be offence- ay m (a) unless the person admits in writing that the person has ok bo committed the offence and accepts the proposed terms is th of compoundment; of rt (b) in respect of conduct of a transaction referred to in pa o section 98; or d .N (c) after court proceedings commence with respect to the ver se offence unless the consent of the Director of Public re s ht Prosecutions is obtained. rig (3) The Commissioner General’s order- ll .A a (a) shall be in writing and specify- ni za an (i) the offence committed; fT (ii) the sum of money to be paid; to en (iii) any asset forfeited; and n m er (iv) the date for payment of the money and surrender ov G of the asset; 25 20 (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 . AG O compounded shall not be liable for prosecution for that offence. of n [s. 92] io s is m er 107. [Repealed by Act No. 3 of 2021 s. 66.] tp Repealed ou [s. 92A] ith w ed ut PART XII rib st di TAX PROCEEDINGS or ed uc od Multiple 108.–(1) The proceedings to recover tax or prosecution of pr proceedings re a person under one provision of a tax law does not restrict be Act No. simultaneous or separate proceedings to recover the same tax ay 2 of 2016 s. 62 m or to prosecute a person under a different provision of that law ok bo or a provision of a different tax law. is th (2) Notwithstanding the provisions of tax law, a person may of rt be convicted or fined for more than one offence with respect to pa o .N same course of conduct or omission. d ve (3) Where two or more provisions which create an offence r se re apply to the same part of a course of conduct or omission of a s ht person, the adjudicator may choose under which provision the rig ll person is to be convicted or fined. .A a ni (4) In any criminal proceeding under this Act or any other za an tax law any document, statement or a copy of or extract from fT to any document or statement, relating to the affairs of any person en m that has been seized or obtained by the Commissioner General n er shall be admissible in evidence. ov G (5) A document, statement or copy of or extract referred to 25 20 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. . AG O (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, the io s is provisions of the tax law related to criminal proceedings shall m er tp apply mutatis mutandis with the provisions of this Act. ou [s. 93] ith w ed ut

109 — (1) A tax officer authorised to search, seize or arrest may

109.–(1) A tax officer authorised to search, seize or arrest may rib Power of search, st seizure and arrest apply to a magistrate for an order to arrest a person. di or (2) The application under subsection (1), shall state the ed uc reasons which make an authorised tax officer to believe that od pr a person- re be (a) has committed an offence under a tax law; ay m (b) will abscond before the person is charged or stand trial ok bo for an offence under a tax law; is th (c) will destroy, tamper or otherwise dispose of evidence of rt of an offence under a tax law; or pa o (d) has in possession any good to which any offence under d .N a tax law has been committed or full duty has not been ver se paid as required by a tax law. re s ht (3) The magistrate may, after being satisfied that the rig situation represents a serious risk to the collection of tax or the ll a .A administration of justice, make an order authorising the tax ni za an officer, to be accompanied by the police officer, to- fT (a) enter any premises or place and restrain assets that may to en reasonably provide evidence that an offence has been n m er committed under a tax law; ov G (b) restrain and search any premises, place, vehicle or 25 20 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); . AG O (d) arrest a person who the tax officer believes on reasonable of n grounds has committed an offence under a tax law; and io s is (e) use reasonable force for the purposes of the preceding m er tp paragraphs including by way of breaking into any ou premises, place or asset that may reasonably contain ith w evidence referred to in paragraph (a). ed ut rib (4) Upon restraining an asset under subsection (3), the tax st di officer shall- or ed (a) serve a written notice on the possessor of the asset and, uc od where there is more than one possessor, service on a re pr single possessor is sufficient; or be (b) where no possessor is available, leave the notice at the ay m premises or place where the restraining takes place. ok bo (5) The notice shall- is th (a) identify and list the assets restrained; of rt (b) state the assets which have been restrained under this pa o .N section and the reason for the restraint; and d ve (c) set out the terms for release, including any as to security r se re required, and terms for disposal of any assets seized. s ht (6) A tax officer arresting a person shall immediately take rig ll that person to the nearest police station. .A a ni (7) A person shall be searched by another person of the za an same sex. fT to (8) A tax officer may exercise any of the powers granted by en m a magistrate under this section in conjunction with any other n er of his powers granted under this Act. ov G [s. 94] 25 20 © 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 . AG O object of the search and seizure. of n (2) The authorised officer shall, before carrying out the io s is search, inform the owner or person in control of the premises- m er tp (a) that the search is being conducted under this section; ou and ith w (b) the law or tax offence that is the basis for the search. ed ut rib (3) The provisions of section 109(4) to (7) shall apply to a st di search to be conducted under this section. or ed (4) The powers provided for under subsection (3)(a) to (e) uc od of section 109 shall apply to a search conducted under this re pr section as if an order of the court has been obtained. be [s. 95] ay m ok bo Provision of 111. A security provided by any person for the purposes of is th security complying with any provision of a tax law shall not act as a of rt defence in any proceeding for recovery of tax or with respect pa o to an offence under that tax law or any other tax law. d .N [s. 96] ver se re s

112 — (1) The Commissioner General may publish in a

112.–(1) The Commissioner General may publish in a ht Publication of rig offenders newspaper or any media of wide circulation within the United ll .A Republic, a list of persons who- a ni za (a) have repeatedly failed to pay tax on time after being an fT notified of his obligation to pay tax by the Commissioner to en General; n m er (b) have been convicted of an offence under a tax law, ov G where the time for appeal has expired; or 25 20 (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]

113 — (1) The Minister may make regulations under any tax law

113.–(1) The Minister may make regulations under any tax law . AG Regulations O for the better carrying into effect of the principles, purposes of n and provisions of that tax law. io s is (2) Regulations made under subsection (1) may relate to a m er tp tax law or tax laws. ou [s. 98] ith w ed ut

114 — The Minister may, in consultation with the Commissioner

114. The Minister may, in consultation with the Commissioner rib Amendments by st Minister General, by order published in the Gazette, amend, vary, add di or or replace any Schedule to this Act. ed uc [s. 99] od pr re be PART XIII ay m TRANSITION AND SAVINGS PROVISIONS ok bo is th

115 — (1) Subject to this section, the respective tax laws shall

115.–(1) Subject to this section, the respective tax laws shall of Transition and rt savings provisions continue to apply for periods and events occurring before the pa o .N date on which this Act comes into effect. d ve (2) All appointments made under the respective tax laws r se re and subsisting at the date this Act comes into effect shall be s ht deemed to be appointments made under this Act. rig ll (3) Any international agreement made by the Government .A a ni of the United Republic that is effective under the respective za an tax laws at the time this Act comes into effect shall continue to fT to have effect under this Act. en m (4) Regulations, rules, practice notes, rulings, orders and n er notices made under the respective tax laws and in force at the ov G commencement of this Act shall continue to be in force as 25 20 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 . AG O this Act. of n (6) Any appeal, prosecution or other proceedings io s is commenced before this Act comes into operation shall m er tp continue and be disposed of as if this Act had not come into ou force. ith w (7) Any tax liability that arose before this Act comes into ed ut rib operation may be recovered by fresh proceedings under this st di Act, but without prejudice to any action already taken for the or ed recovery of the tax. uc od (8) A reference in this Act to “this Act” or to a provision of re pr “this Act” includes, where the context requires, a reference to be the prior law or to a corresponding provision of the prior law, ay m respectively. ok bo [s. 100] is th of rt pa SCHEDULES o d .N ver se re s

FIRST SCHEDULE

FIRST SCHEDULE ht rig ll (Made under section 3) .A a ni za TAX RETURNS AND ASSESSMENTS an fT Tax Returns 1. The following are tax returns for the purposes of this Act: to Acts Nos. en (a) in relation to income tax- m 4 of 2017 s. 61 (i) a statement of tax withheld or treated as withheld filed n er 8 of 2019 s. 46 under section 109 of the Income Tax Act; ov 7 of 2023 s. 59 G (ii) a statement of estimated tax payable filed under section 25 20 114 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 section 7 of the Airport Service Charge Act; and O Cap. 365 of (g) in relation to Port Service Charge, a return filed under n io Cap. 264 section 7 of the Port Service Charge Act. s is m (h) in relation to bed night levy, a return filed under the Tourism er tp (Tourism Development Levy) Regulations. ou ith Assessements 2.–(1) For purposes of this Act, “assessment” includes- w ed (a) in relation to income tax, an assessment made under section ut 120 of the Income Tax Act; rib Cap. 332 st (b) in relation to the taxes referred to in paragraphs 1(b) to (e), di or an assessment made under paragraph 3 of this Schedule in ed respect of the obligation to file a tax return; uc od (c) in relation to gaming tax, a demand notice of the Board made pr under section 33 of the Gaming Act; re Cap. 41 be (d) in relation to stamp duty, a note, certificate, decision or ay requirement of a Stamp Duty Officer under section 24, 25, m ok Cap. 189 45 or 51 of the Stamp Duty Act; bo (e) in relation to property rate, a demand or a demand note is th issued by the Commissioner General under the Local of Government Authorities (Rating) Act; and rt Cap. 289 pa (f) in relation to this act, an assessment made under sections o .N 58 (jeopardy assessment), 59 (adjusted assessment) or 92 d ve (interest and penalty assessement) of this Act. r se (2) The Commissioner General may exercise all powers under re s this Act with respect to any assessment (including a self-assessment), ht rig including powers under Part VII of this Act. ll .A 3.–(1) Where a person files a tax return in accordance with an obligation a Self-assessments ni za to which this paragraph applies, an assessment is treated as made on the an due date for filing the tax return. fT to (2) The assessment is in an amount equal to the net amount of tax en due, if any, as shown in the tax return. n m er (3) An “obligation to which this paragraph applies” means an ov obligation to file a tax return in accordance with the provisions referred G 25 to in paragraphs 1(b) to (e). 20 © 367  THE TAX ADMINISTRATION ACT [CAP. 438 R.E. 2023]

SECOND SCHEDULE

SECOND SCHEDULE (Made under section 4(3)) CURRENCY POINT 1 currency point equals to 15,000/= Tanzania Shillings. . AG O of n io

THIRD SCHEDULE

THIRD SCHEDULE s is m er (Made under section 25(2) and (4)) tp ou ith TRANSACTIONS FOR WHICH TAXPAYER w ed IDENTIFICATION NUMBER IS REQUIRED ut rib st di or Act No. S/N. INSTITUTION PURPOSE OF TRANSACTIONS ed 3 of 2021 s. 67 1. Commissioner General New registrations under the uc od of the Tax Authority Value Added Tax Act. re pr Importation of goods; customs be clearing and forwarding. ay m Registration of ownership or ok bo transfer of vehicles under the is Road Traffic Act. th of Licensing of motor vehicles under rt pa the Transport Licensing Act. o .N 2. Commissioner for Lands Registration of title upon transfer d ve of ownership. r se re 3. Central and Local Trade licence. s ht Government rig ll 4. Business Registration New registrations .A a and Licensing Authority ni za an 5. Registrar of Patents and New registrations fT Trade Service Marks to en 6. Ministry of Industry and Trade licensing and industrial n m Trade licensing er ov G 7. Ministry of Natural Licensing 25 Resources and Tourism 20 © 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, . AG Cooperative Societies O and Public Bodies. of n 10. Workers Compensation Employee’s registration io s is Fund m er tp 11. Occupational Safety and Employee’s registration ou Health Authority ith w 12. Government, Company Employment ed ut or individual rib st di or ed uc od pr re be ay m ok bo is th of rt pa o d .N ver se re s ht rig ll .A a ni za an fT to en n m er ov G 25 20 © 369  © 20 25 G ov er nm en to fT an za ni a.A ll rig ht s re se rve d.N o pa rt of th is bo ok m ay be re pr od uc ed or di st rib ut ed w ith ou tp er m is s io n of O AG .

The Tax Administration Act, Chapter 438 [Principal Legislation], Revised Edition 2023

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