Assessment of the different bodies involved in settling tax disputes in

Tanzania.

Tanzania has a structured system for resolving tax disputes, starting with
internal reviews and moving to independent appeals. Below, is a break down
each body’s role and process to help you understand how they work.

1. OBJECTION SETTLEMENT BY THE COMMISSIONER GENERAL (TRA)

Objections and Appeals is governed by Tax Administration Act no. 438 R.E
2019 and Tax Revenue Appeals Act, Cap.408 R.E 2019 as revised from time
to time. Introduction to Objection and Appeals Tanzanian tax laws allow any
person who feels aggrieved to request a formal change to an official decision
regarding tax assessment made by the Commissioner General. A taxpayer
who feels that the Commissioner General misapplied the law, came to an
incorrect factual finding, abused his powers, was biased, considered
evidence which he should not have considered or failed to consider evidence
that he should have considered in making an assessment, may object
against such an assessment. Assessment of Tax Is an assessment of tax as
determined or ascertained in each respective tax law. Disputed Assessments
an assessment made by the Commissioner General and the taxpayer
disagrees with such tax findings. Tax not in dispute Means the amount that
ought to be charged where the assessments or a tax decision is amended in
accordance with objections and the whole of duty or any tax assessed on
import.1 In a case of Hon Nimrod .E. Mkono V Commissioner General VAT Tax
appeal case No 6 of 2004 2

The material facts of this case Is that on 5 th January, 2004 the appellant
received from the respondent a notice of assessment bf tax appearing as
(Annexure C) in the statement of appeal, That on 13 January, 2004 the
appellant Lodged a notice of objection (Annexure V) of the statement of

1
Kibuta O. et al, Tax disputes resolution A manual for the tax practitioner, Mkuki na nyota,
Dar es salaam 2015.
2
Case No 6 of 2004

1
appeal against the additional assessment. That on 13 January, 2004 the
appellant submitted a written request to ‘the respondent for waiver of the
requirement upon the appellant to pay the tax assessed pending the
determination of the notice of objection. On 20t January, 2004 the
respondent-under (Annexure “A) to the statement of appeal informed the
appellant that his request far waiver has not been successful and no reasons
were given for the refusal for the request . For waiver. The appellant lodged a
notice of intention to appeal against the Respondent’s decision (Annexures
G) to the statement of appeal. On 18th February, 2004 under (Annexures TRA
2) to the respondent’s statement of the reply, the respondent assigned
reasons for refusing a grant of waiver On 3 rd March, 2004 the appellant filed
the statement of Appeal in this Board.

Issue

 Whether the Commissioner is bound to give reasons for his decision.

The Board stated that-

“We have even tuned to the concept or principles of “Natural Justice” under
the principles if once has a might to be heard then he or she should know the
basis of the decision that bas been taken. This principle goes hand in hand
with the well-know legal maxim that “justice should not only be done but
should be seen to be done” IL follows therefore that the respondent had legal
obligation to give reasons for his refusal for waiver of the assessed tax.
Failure to this we find and appreciate the: fear by the appellant that the
decision could have be given out maliciously or willful beating norms of “fair
justices” and in the course it becomes a nullity. This brings us to our settled
decisions that with no reasons advanced by the respondent who was
aggrieving an administrative decision then the decision is a nullity 3

Any person who is aggrieved by the objection decision or other decision or

omission of the Commissioner General may appeal to the Board in
3
Case No 6 of 2004

2
accordance: with the provisions of the Tax Revenue Appeals Act. The Board
shall be deemed to be the Tax Appeals Tribunal established under section
231 of the East African Community Customs Managernent Act 2004 (Decision
made under the customs laws),This implies that a person who is aggrieved
by the decision made under customs laws after following the procedures
provided. In those laws of resolving disputes shall appeal to the Tax Revenue
appeal Board(TRAB) which will be deemed as the Tax Appeal Tribunal
established under section 231 of the East African Community Customs
Management Act 2004.

Law governing tax Objections and Appeals

Objections and Appeals is governed by Tax Administration Act no. 438 R.E
2019 and Tax Revenue Appeals Act, Cap.408 R.E 2019 as revised from time
to time.

Introduction to Objection and Appeals

Tanzanian tax laws allow any person who feels aggrieved to request a formal
change to an official decision regarding tax assessment made by the
Commissioner General. A taxpayer who feels that the Commissioner General
misapplied the law, came to an incorrect factual finding, abused his powers,
was biased, considered evidence which he should not have considered or
failed to consider evidence that he should have considered in making an
assessment, may object against such an assessment. 4

Assessment of Tax

Is an assessment of tax as determined or ascertained in each respective tax

law.

Disputed Assessment

Is an assessment made by the Commissioner General and the taxpayer

disagrees with such tax findings. Tax not in dispute Means the amount that
4
Cap.408 R.E 2019

3
ought to be charged where the assessments or a tax decision is amended in
accordance with objections and the whole of duty or any tax assessed on
import.

Objection Procedure

A person who is aggrieved by a tax decision made by the Commission

General may object the decision by filling notice of objection . Notice of
Objection to the Commissioner General within 30 days from the date of
service of the tax decision. An objection to a tax decision shall be made in
writing stating the grounds upon which it is made and such objection to a tax
decision shall be accompanied by relevant document or information which
the tax payer intends to rely upon to support his objection. Such objection
shall not be admitted unless the taxpayer has paid amount of tax which is
not in dispute or one third of the assessed tax whichever the amount is
greater. The tax not In dispute and in case customs duty of the whole of duty
or any tax assessed on imports shall be payable at the time of filing the
notice of objection and if the due date occurred earlier than the period of
thirty days the tax not in dispute shall be payable on that due date. Upon
application by taxpayer within fifteen days from the date of the issue of the
tax decision, and where the Commissioner General is satisfied that there
exist good reason warranting reduction or waiver, he may waive the amount
to be paid or accept the lesser amount. Where a taxpayer files an objection
and makes statutory payment, the liability to the remaining assessed tax
shall be suspended until the objection is finally determined. A person who
has a reasonable ground to warrant extension of time to file an objection
against the tax decision may apply for an extension of time within 7 days
before expiration of the time limit for lodging the notice of objection. Where
the Commissioner General is satisfied by the reason started in the
application made, he shall grant the extension of time and save the notice of
his decision to the applicant. The extension granted shall not exceed 30
days.

4
According to section 51 of the tax administration act CAP 438 R.E 2019 it
provides that;

51.-(1) A person who is aggrieved by a tax Decision made by the

Commissioner General may object The decision by filing an objection to the
Commissioner General within thirty days from the date of service of the Tax
decision. 5

(2) A person who has reasonable ground to Warrant extension of time to file
an objection against a Tax decision may apply for an extension of time.

(3) Where the Commissioner General is satisfied By the reason stated in the
application made under Subsection (2), he shall grant the extension of time
and Serve the notice of his decision to the applicant.

(4) An objection to a tax decision shall be in Writing stating the grounds

upon which it is made.

(5) An objection to any tax decision 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 decision whichever amount is greater.

(6) Where the Commissioner General is satisfied That there exist good
reasons warranting reduction or waiver, he may waive the amount to be paid
under Subsection (5) or accept a lesser amount.

(7) Where a taxpayer files an objection and Makes payment under

subsection (5), the liability to pay The remaining assessed tax shall be
suspended until the Objection is finally determined.

(8) In this section, “tax not in dispute” with Respect to an assessment or

any tax decision means-

5
CAP 438 R.E 2019

5
 (a) The amount that ought to be charged where the Assessment or a tax
decision is amended in Accordance with the objection; and
(b)The whole of duty or any tax assessed On imports.

(9) Where the taxpayer fails to pay the amount Stated under subsection (5)
within the time provided Therein, the assessed tax decision shall be
confirmed as Final tax assessment in terms of section 15(1)(a) of the Tax
Revenue Appeals Act. 6

2. TAX REVENUE APPEAL BOARD(TRAB)

TRAB is a quasi-judicial institution established under section 4(1) of Cap 408.

Laws administered by TRA. The board also have a duty of providing public Its
core function is to hear and determine civil dispute arising from revenue
education regarding their functions and mechanisms on how to resolve the
tax disputes. The Composition of the Board is provided under section 4(2) of
the Tax Revenue Appeals Act, CAP 408 [R.E 2010] as amended by Section 24
of the Written Laws (Miscellaneous Amendment) Act, Act No.3 of 2016.The
Board shall consist of the chairman who shall be appointed by the Minister.
Three vice-chairmen who shall be appointed by the Minister one of whom
shall be from Tanzania Zanzibar, not more than twelve other members who
shall be appointed by the Minister from each region who shall sit in the Board
for the purpose of hearing and determining any appeal originating in the
region from which they are appointed.

Section 4(3) of Cap 408 provides that a person may be appointed to be a

chairman of the Board if he is a principal legal officer or a person having
adequate knowledge of taxation. For the member of the Board if he posses
knowledge of and experience in taxation, law, commercial or financial
matters 478

6
CAP 438 R.E 2019

6
The implication of these qualifications is that even a person who is not
trained in law can be a chairman or vice-chairman of the Board. This is a
serious concern since advocates are allowed to appear before the Board
when representing their clients. Advocates are well trained in law and
appearing before persons who are not trained in law; this may affect
effective administration of justice in terms of substantive and procedural
matters.

Jurisdiction of the Board

Section 7 of Cap 408 as amended provides for the jurisdiction of the Board:-

(a) Original Jurisdiction

The Board shall have sole original jurisdiction in all proceedings of all civil
nature in respect of disputes arising out from revenue laws administered by
Tanzania Revenue Authority. The Finance Act 2016 under section 51
amended the First schedule of the Tanzania Revenue Authority Act 1995 to
the effect that TRA is mandated now to administer revenue from tax laws
and hon-tax laws. This implies that disputes arising from administration of
these laws by TRA are also within the jurisdiction of the Board. 7

In the case of Resolute Tanzania Limited V. Commissioner General (2005]2

TTLR 200, The Board held that;

“in terms of section 7 and 40 of the Tax Revenue Appeals Act 2000 and
section 5A of Tanzania Revenue Authority Act the Board has been conferred
with jurisdiction in all proceedings of a civil nature in respect of disputes
arising from revenue laws administered by the Tanzania Revenue Authority
subject to the procedure laid down under section 12 of the Tax Revenue
Appeals Act 2000”

7
Kibuta O. et al, Tax disputes resolution A manual for the tax practitioner, Mkuki na nyota,
Dar es salaam 2015.

7
It has to be noted that section 12 of Cap 408 has been repealed by Section
108 of the Tax Administration Act, Act No. 10 of 2015.The procedures for
disputes settlement are now provided under PART VII of TAA 2015. 8

(b) Appellate Jurisdiction

The Board has mandate to entertain appeals arising from assessment of tax
by TRA. The appeal shall not be entertained by the board until PART VII of the
TAA 2015 has been complied. (Section 7A of cap 408 has been amended by
section 107 of TAA 2015).This implies that a person should comply with the
requirement of sections 50 to 53 of the TAA before lodging an appeal to the
Board. Among other things the person must have paid the amount of taX
which is not in dispute or one third of the assessed tax whichever amount is
greater as the requirement of the law. This is the condition which must be
complied before lodging an appeal to the Board.

There are different issues/matters which have been discussed through

different cases regarding the jurisdiction of the board:-

(a) Whether the board has jurisdiction over criminal matters

The following cases provides the position of law in respect of this matter:-

M/S Manika Ltd V Commissioner General (2008]3 TTLR 98; In this case the
Respondent in May 2007 through Computer system discovered that many
VAT registered persons were claiming VẤT as in put tax through their
monthly VAT returns stating that the same had been collected by the
appellant from various goods and services the appellant had supplied them.
After cross- checking, the same was not reflected, it then arouse a suspicion
of a foul played.9 The respondent wrote to the appellant to bring its business
records, but the appellant never conceded, instead it wrote back that the
requested documents could not be traced because they were misplaced
during the city cleaning exercise whereby some buildings were demolished.

8
(2005]2 TTLR 200.
9
(2008]3 TTLR 98

8
The appellant however, did not inform the respondent of its new business
premises followin3 the demolition exercise.

The respondent went to streets to trace the claimants of input tax allege
collected by the appellant; they succeeded to collect a number of tax invoice
and receipts bearing the name, TIN and VAT Registration Number of the
appellant showing that the appellant had supplied a variety of goods and
services to the claimants, When compared to the appellant’s own
declarations of its monthly VAT returns, the numbers of the tax invoices
collected from these input tax claimants could not be reflected.

This act of the appellant had elements of fraud and tax evasion which is a
criminal offence.

Hence, when the Board determined the matter on that point, it held that:

«The appellant’s submission that they had already found elements of fraud
done by the companies involved in the alleged transactions and already
reported the matter to the police and it is undergoing police investigation, is
purely matter of criminal nature which ousts the jurisdiction of the Board
which is vested with jurisdiction on matters of a civil nature related to
taxation.”

It’s core functions are as follows:-

(a) To hear and determine civil disputes arising from revenue laws
administered by the Tanzania Revenue Authority.
(b)To conduct public awareness on Tax Revenue Appeals Act, Cap. 408
and its Regulations, and other related tax laws; and to the stakeholders
(c) To publish Tanzania Tax law Reports
(d)To provide legal advice to litigants

In the case of Majengo Star Service Station V. Commissioner General [2008]

3 TTLR I15 the appellant was ordered by the respondent to close the

9
business of selling adulterated petroleum products. 10 The appellant was not
satisfied and rushed to the Resident Magistrate Court whereby he was
granted an ex-parte restraint order. He then continued with the business. The
civil case was later dismissed on the ground that the court had no jurisdiction
to entertain the matter. The respondent later served the appellant with a
demand letter demanding taxes on the adulterated fuel; the appellant
strongly objected. The appellant claimed before the Board that, the
respondent’s decision to assess him to tax was wrong for failure to either
compound the offences or prosecute him before the courts of law. Thus, the
appellant sought legal guidance or directive from the Board On what
procedure ought to have been followed by the respondent. On the part Of
the respondent, they submitted that, the appeal be dismissed because the
Board has no jurisdiction to advise the parties before it.

The Board held that:-

“The appellant’s prayer seeking for legal guidance or directive on what

procedure ought to be followed by the respondent cannot be granted
because the main function of the Board is to adjudicate upon disputes or
resolve matters relating to tax assessments and not legal consultancy.’

(a) Whether the board has jurisdiction to entertain appeals arising from the
administration of the East African Community Customs Management Act of
2004/Customs laws.

Previously there was a problem in respect of whether the Board is vested

with jurisdiction to determine appeal from customs laws. The position is now
settled under Section 53(3) of Tax administration act . 11The Section provides
that the Board shall be deemed to be the Tax Appeals Tribunal established
under Section 231 of the East African Community Customs Management Act
2004.This implies that decision or omission made under customs laws is
subject to appeal to the Board which is deemed to be the Tax Appeals
10
2008] 3 TTLR I15
11
CAP 438 R.E 2019

10
Tribunal established under section 231 of the East African Community
Customs Management Act 2004.The Board is deemed to be the Tax Appeals
Tribunal in respect of customs laws only and not otherwise. The Tax Appeals
Tribunal should not be confused with the Tax Revenue Appeals Tribunal
(TRAT) established under Cap 408.These are two different institutions with
different mandate. As pointed out the Tax Revenue Appeals Board (TRAB) is
deemed to be the Tax Appeals Tribunal in respect of customs laws and appeal
from this Board goes to the Tax Revenue Appeals Tribunal (TRAT).

(b)Whether the Board has a jurisdiction to extend time to file an appeal

out of time.

This was decided in the case of Simon H. Steven V Commissioner General

[2005) TTLR where the issue was whether the Board has jurisdiction to
entertain an application for extension of time to file an appeal out of time. 12

It was held that:-

“The Board has jurisdiction to entertain the application for the extension of
time to file an appeal out of time as applied by the appellant” 13

PROCEDURE OF APPEALING TO THE BOARD

A person who wishes to appeal to the Board shall:-

File to the Board and serve to the Commissioner general a written notice of
intention to appeal within thirty days following the date on which a notice of
final determination of assessment of tax or any other decision by the
Commissioner General ( section 16(1) & (3)(a) of the Tax Revenue Appeals
Act, Cap. 408 read together with rule 3 of the Tax Revenue Appeals Board
Rules, 2018 . A notice of intention to appeal shall be made in the Form TRB. 1

Lodge the appeal to the Board within forty five days following the date on
which the notice of final determination of assessment of tax or any other

12
H. Steven V Commissioner General [2005) TTLR
13
[2008] 3 TTLR I15

11
decision by the Commissioner General as per section 16(1) & (3) (b) of the
Tax Revenue Appeals Act, Cap. 408 read together with rule 5 of the Tax
Revenue Appeals Board Rules, 2018. Every appeal shall be made in Form
TRB. 2

A person who institutes an appeal to the Board shall attach all material
documents which are necessary including appealable decision and other
documents mention under rule 6 of the Tax Revenue Appeals Board Rules,
2018, for proper determination of the appeal.

The Appellant shall, when instituting an appeal to the Board, pay the
appropriate fees prescribed in the Second Schedule of the Tax Revenue
Appeals Board Rules, 2018, otherwise the Board reject the appeal. (rule 7 of
the Tax Revenue Appeals Board Rules, 2018)14

If a taxpayer is not satisfied with the Commissioner General’s decision on

their objection, the next step is to appeal to the Tax Revenue Appeals Board
(TRAB).

According to section 16 of The Tax revenue appeal act CAP 408 R.E 2019.
Provides that;

16.-(1) Any person who is aggrieved by an Objection decision of the

Commissioner General made Under the Tax Administration Act may appeal
to the Board.

(3) The Board shall not entertain an appeal Pursuant to this section unless-

(a) A notice of appeal is served upon the Commissioner General within

thirty days Following the date on which a notice of final Determination
of assessment of tax or any Other decision by the Commissioner
General In accordance with subsection (1) is served On the appellant;
and

14
https://www.trab.go.tz

12
 (b)The appeal is lodged with the Board within Forty-five days following
the date on which

The notice of final determination of Assessment of tax or any other decision

by The Commissioner General in accordance With subsection (1) is served on
the Appellant.

(4) A party who is aggrieved by the decision of The Board may appeal
against that decision to the Tribunal within thirty days from the date of
service of The decision and proceedings of the Board and shall Serve to the
opposite party the notice of intention to Appeal within fifteen days from the
date of the decision.

(5) The Board or Tribunal, may extend the limit Of time set under subsection
(3) or subsection (4) of this Section if it is satisfied that the failure by a party
to give Notice of appeal, lodge an appeal or to effect service to The opposite
party was occasioned by absence from the United Republic, sickness or
other reasonable cause, Subject to such terms and conditions as to costs as
it May consider just and appropriate.15

Execution of Decision of the Board

The decision of the board shall be enforced by making application to the

Board and the Board shall issue a decree or order authorising execution. The
execution of the decree or order issued by the Board shall be carried out in
accordance with the provision of the Civil Procedure Code of 1966 as
amended. The application for execution shall be made upon expiry of thirty
days from the date on which the decision or order of the Board was made.

Any person who is aggrieved by the decision of the Board may appeal
against the decision of the Board to the Tax Revenue Appeals Tribunal (TRAT),
An appeal shall not operate as a bar for execution of any decree or order of
the Board or Tribunal as the case may be.$8 The tax payer is required to
make an application for stay of execution, the alternative is to seek a
15
CAP 408 R.E 2019

13
restraint order to prevent TRA from collecting the disputed tax and this can
be made by way of application supported by an affidavit. The affidavit must
state the reasons for seeking the restraint order. Considering such
application is only made where there is real threat of enforcement, it is good
to file the same under the certificate of urgency so that the hearing is
scheduled promptly.

3. TAX REVENUE APPEAL TRIBUNAL(TRAT)

Tax Revenue Appeals Tribunal (TRAT) TRAT is established under Section 8(1)
of Cap 408 and it consist of the Chairman who is appointed by the President
after consultation with the Chief Justice, two vice Vice-Chairmen who shall be
appointed by the President. One of whom shall be from Tanzania Zanzibar,
four other members who shal be appointed by the Minister responsible. A
person may be appointed to be the Chairman of the Tribunal if he is a judge
of the High Court; whereas a member of the Tribunal to be appointed is
required to posses knowledge of and experience in taxation, commercial or
financial matters. The qualification of Vice-Chairman is not provided by the
law therefore it is possible a person who is not a judge of the High Court or a
person not trained in law to be appointed as a Vice Chairman of the Tribunal.

Jurisdiction of the Tribunal

The Tribunal is vested with;

(a) Appellate Jurisdiction

The Tribunal is vested with sole jurisdiction in all appeals arising from the
decision of the Board when exercising original jurisdiction.

(b)Supervisory jurisdiction

The tribunal may call for and inspect the record of any proceeding before the
board and may revise any decision thereof.

14
Tax Revenue Appeals Tribunal (TRAT) was established in 2002 and its
Registry starts to operate in 2003.Establishment of The Unified Tax Appeals
System Prior to the establishment of TRAT (the New Unified Tax Appeals
Machinery), there was the National Tax Appeals Board, which had jurisdiction
to hear and determine only Income Tax Appeals arising from the decisions of
the Commissioner of Income Tax. After that, the aggrieved party had a room
to appeal to the High court and finally to the Court of Appeal of Tanzania.
Due to the fact that the main source of revenue of any country depend
mainly on Taxation; therefore it is important to establish a Unified Tax Appeal
machinery which will determine tax disputes at a speedy, efficiency and
impacial so as to realize government revenue without undue delay. The
establishment of TRAT was meant to replace the previous Institution which
dealt with appeals originating from the Income Tax Laws only. TRAT was
established along with the coming into force of the Tanzania Revenue
Authority (TRA) Act of 2000; which empowers the Commissioner General of
TRA to deal and oversee all undersigned revenue laws. In order to implement
the policy of TRAT the Parliament enacted the Tax Revenue Appeals Act, Cap
408 [RE 2009], which establishes Tax Revenue Appeals Board and Tax
Revenue Appeals Tribunal. These Tax Revenue Appeals Board (TRAB) and Tax
Revenue Appeals Tribunal (TRAT) are quasi-judicial institutions, established
under Sections 4 and 8 of the Tax Revenue Appeals Act, Cap 408 [RE 2019]
respectively.

In the Case of Elnasr Export Port Company v. Nahd Trading Co, the Former
Chief Justice Samatta said the notice of appeal is the gear to move the court.
Without engaging this gear properly the appeal is doomed to fail,8 It is
arguable that if the appeal is deemed to commence only after the notice of
appeal is lodged, then the time period for lodging an appeal must be
governed by TRAT Rules not the Appellate Jurisdiction Act and the Court of
Appeal Rules 2009.This view highlights the need to comply with the fourteen

15
days limit rather than thirty days provided under the Court of Appeal Rules
2009,49916

The functions of the Tax Revenue Appeals Tribunal are as follows:-

1. To hear and determine, tax appeals arising from the decision of the Tax
Revenue Appeals Board as provided for by Section 11 of the Tax
Revenue Appeals Act, Cap 408 [R.E 2019].
2. To supervise Tax Revenue Appeals Board in the exercise of its powers
under Tax Revenue Appeals Act, Cap 408 [RE 2019].
3. Giving advice to parties to tax disputes on procedures of appealing to
the Tribunal.
4. To provide public awareness on Tax Revenue Appeals Act and other
related tax laws.
5. To make follow-up and Report on the decisions from the Tax Appeals
Tribunal to the Court Of Appeal of Tanzania.
6. To advise the parliamentary drafts on the Tax laws according to
prevailing time and material conditions.
7. To prepare and avail Tax Law Reports.

PROCEDURE OF APPEALING TO THE TRIBUNAL

A person who wishes to appeal to the Tribunal shall:-

1. The appeals start at Tax Revenue Appeals Board (TRAB) after the tax
payer being aggrieved by the decision of the Commissioner General.
2. TRAB determine the case and give out its decision. The aggrieved
party from the decision of TRAB goes to Tax Revenue Appeals Tribunal
(TRAT).
3. A person who wishes to appeal to the Tribunal shall issue a written
notice of intention to appeal within fourteen days from the day of the
decision of Board. The said notice shall state whether the intended

16
Elnasr Export Port Company v. Nahd Trading Co,

16
 appeal is against the whole decision or part of the decision of the
Board.
4. A notice of intention to appeal shall be made in the Form TRT .1 and
shall be signed by or on behalf of the appellant. Where the Registrar
has received a notice of intention to appeal he shall endorse on it the
date on which it was received and register all particulars.
5. An appeal to the Tribunal shall be instituted by lodging a statement of
appeal within 30 days from the date when the decision of the Board
was delivered. Every appeal shall be made in Form TRT .2. Upon
receipt of appeal, the Registrar shall endorse on it the date on which
he received it. The appellant shall pay the appropriate amount of fees
when instituting an appeal to the Tribunal.
6. The appeals from TRAT goes to the Court of Appeal of Tanzania. 17

Extension of Time to Institute an Appeal

A party may lodge an application with the Tribunal to seek extension of time
to file an appeal. The tribunal where it deems just and equitable and having
regard to the nature of the intended appeal and after the opposite party has
been given an opportunity to be heard, by order extend the period within
which the appellant may institute the appeal to the Tribunal.492 The
application is normally made by way of Chamber Summons supported by
Affidavit.

Attendance of Parties

Attendance of parties to the Tribunal is procured by issuing a fourteen day’s

notice of hearing (Summons) to all parties to an appeal. The summons shall
be in Form TRT 3 as prescribed in the first schedule to TRAT Rules 200 1. The
Tribunal is given power to issue a warrant of arrest to procure attendance
before it of a person who being served with summons to appear and without
reasonable excuse fails to appear.

17
http://trat.go.tz

17
The appellant may appear in person or be represented by a person
registered as a tax consultant, accountant, auditor or advocate and the
Commissioner may be represented by the person dully authorized in that
behalf. This implies that at the Tribunal even persons who are not advocates
are allowed to represent the parties provided they have requisite
qualifications.

Proceedings Before the Tribunal

The proceedings before the tribunal shall be open to the public, however the
tribunal has mandate to direct the hearing be closed to the public, the
tribunal can do so suo motto or upon request by either party, During the
heariny the appellant shall state the grounds of the appeal which he wants to
rely in order for the tribunal to decide on his favour. The proceeding is like
that of the Board. There should be a little regard to the technicalities and
formalities This implies that the tribunal is not bound by the rules of
evidence but may inform itself on their existence and may refer to them
when they deem so. In hearing the appeal, the Tribunal may determine the
mater through mediation, conciliation or arbitration but the rules of
proceeding under the Civil Procedure Code of 1966 as amended and the
Arbitration Act with regard to conduct of mediation and arbitration shall not
apply.18

The appellant Is precluded/ excluded without the consent of the tribunal to

adduce any evidence which was not previously present or made available
before the board for determination of the matter.

After the conclusion of the statement and any evidence by the appellant, the
respondent shall be allowed to make such submission supported by relevant
evidence.

18
Y.mesfin, Tax law, justice and legal system institute press, Dar es salaam Tanzania 2009 pg. 71

18
The appellant is allowed to reply the respondent submission but may not rely
on ground or evidence adduced at earlier stage of hearing. The tribunal after
hearing the evidence and submission of both parties it will make a decision
in the presence of the parties or their representatives.

The determination of any matter before the tribunal shall be by the majority
of members present and where there is descending opinion of a member(s).
the decision of the chairman or other person presiding at the proceeding
shall be final and conclusive.

The chairman and vice chairman is not bound by the descending opinion of
the any member(s) but the law requires him to record the differing opinion
and reasons for his disagreement.

Execution of the Decision of the Tribunal

The decision of the tribunal shall be enforced by making application to he

tribunal which shall issue a decree or order authorizing execution shall be in
accordance of the Civil Procedure Code of 1he application for execution shall
be made upon expiry of thirty days to date on which the decision of the
tribunal was made.

Any party aggrieved by the decision of the Tribunal shall appeal to the Court
of Appeal of Tanzania.19

4. TAX OMBUDSMAN

A tax ombudsman is an independent authority established to handle

complaints from taxpayers about the administration of tax laws. This role
focuses on resolving issues related to procedural, service, or administrative
problems rather than tax policy or legislation itself. The ombudsman acts as
a mediator between taxpayers and tax authorities, ensuring that taxpayers’
19
J.A Ng`wandu, Tax Administration in Tanzania Theory and practice, University of Dar es salaam press (2016) 1st
edition pg.400

19
rights are protected while balancing the responsibilities of the revenue
agency. Many countries, such as Kenya, South Africa, and the United
Kingdom, have tax ombudsmen to provide a free and impartial service for
addressing tax-related disputes.

The Tax Ombudsman Office of Tanzania (TOST) is an independent

government entity established under Section 28A of the Tax Administration
Act, Cap 438 in 2019. The office operates with full legal mandate in
redressing maladministration pertaining to procedural, service and
administrative matters committed by the Tanzania Revenue Authority (TRA)

Tax Ombudsman Service, Tanzania (TOST) was established to handle tax

complaints arising from maladministration of tax laws committed by Tanzania
Revenue Authority, Commissioner General or Staff of Tanzania Revenue
Authority. It is an alternative complaint resolution method which is faster,
impartial and focuses on seeking equitable rather than legal remedies. 20

ESTABLISHMENT OF TAX OMBUDSMAN

Section 28A of tax administration act CAP 438 R.E 2019, provide that;

There is hereby established an office to Be known as Tax Ombudsman

Service which Shall be responsible for reviewing and addressing any
Complaint by a taxpayer regarding service , procedural Or administrative
matter arising in the course of Administering tax laws by the Authority, the
Commissioner General or a staff of the Authority.

APPOINTMENT OF TAX OMBUDSMAN

Section 28B of tax administration act CAP 438 R.E 2019 provide that;

The Minister shall appoint a person with Competent knowledge in tax

administration matters to Be a Tax Ombudsman. (2) The Tax Ombudsman
shall be in charge of And carry out the functions of the Tax Ombudsman
Service independently and impartially without Interference from any
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https://www.tos.go.tz

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institution, agency or department Of the Government or any other person.
(3) Notwithstanding subsection (2), the Tax Ombudsman’s findings shall
directly be submitted to the Minister as recommendations for the Minister’s
Deliberations and directives. (4) The decisions or recommendations of the
Tax Ombudsman shall not bind a taxpayer whose complaint Or matter
formed the subject matter of such decision or Recommendation. (5) The Tax
Ombudsman shall hold office for a Renewable period of three years under
such terms and Conditions regarding remuneration as the Minister May
determine. (6) The Minister shall prescribe regulations Governing the conduct
of Tax Ombudsman and Modalities of recruiting staff and employees to
perform Tax Ombudsman Service

DUTIES OF TAX OMBUDSMAN

According to section 28C of the tax administration act CAP 438 R.E 2019,
provides that;

In discharging his duties the Tax Ombudsman shall-

(a) Review a complaint, and where necessary, Resolve it amicably through

mediation or Conciliation
(b)Act independently and impartially in resolving Complaints;
(c) follow informal, fair and cost effective Procedures in resolving
complaints;
(c) Provide information, training and awareness to Taxpayers on tax
ombudsman service, Functions and procedures of making Complaints;
(d)facilitate access by taxpayer to dispute Resolution processes within the
Authority; and
(e) Identify and review tax administrative issues Related to customer
service, or procedures and Behaviors which impact negatively on
Taxpayers. 21

LIMITATIONS OF POWERS OF TAX OMBUDSMAN

21
CAP 438 R.E 2019

21
Section 28D of the tax administration act provides that;

The Tax Ombudsman shall not review. Legislation or tax policy; Authority’s
policy or practice save that which Relates to service, administrative or
procedural Matter with respect to administration of tax Laws; a matter
subject to a tax objection or Appeal, Save for an administrative matter
relating to such tax objection or appeal.

Also 28E provide that;

The Tax Ombudsman and person acting on His behalf shall not disclose
information of any kind That is obtained by or on behalf of the Tax
Ombudsman’s or prepared from information obtained By or on behalf of the
Tax Ombudsman, to the Authority. (2) The provisions of section 21 of the Act
shall Apply on the Tax Ombudsman including his officers, any Person who
acts on his behalf and a person whose Complaints are being considered by
the Tax Ombudsman. (3) Notwithstanding subsection (2), the Authority Shall
allow the Tax Ombudsman access to information In the possession of the
Authority which relates to The Tax Ombudsman’s powers and duties under
this Act.

Conclusion

Tanzania’s tax dispute settlement framework is a well-structured, multi-tiered

system that begins with internal objections, progresses through independent
appeals (TRAB and TRAT), and includes the Tax Ombudsman for
administrative redress. Recent reforms, such as mediation introduced by the
Finance Act and the operationalization of the Tax Ombudsman , enhance
efficiency and fairness. This system ensures taxpayers have multiple
avenues for resolving disputes, while the government maintains an effective
tax administration.

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 BIBLIOGRAPHY

BOOKS

Kibuta O. et al, Tax disputes resolution A manual for the tax practitioner,
Mkuki na nyota, Dar es salaam 2015.

Y.mesfin, Tax law, justice and legal system institute press, Dar es salaam
Tanzania 2009

J.A Ng`wandu, Tax Administration in Tanzania Theory and practice, University

of Dar es salaam press (2016) 1st edition

STATUTES

Tax administration act CAP 438 R.E 2019

Tax Revenue Appeals Act, Cap 408 [RE 2019]

The East African Community Customs Management Act of 2004

The income tax act CAP 332 R.E 2019

CASE LAW/PRECEDENTS

Majengo Star Service Station V. Commissioner General [2008] 3 TTLR I15

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M/S Manika Ltd V Commissioner General (2008]3 TTLR 98

Resolute Tanzania Limited V. Commissioner General (2005]2 TTLR 200

Elnasr Export Port Company v. Nahd Trading Co

Hon Nimrod .E. Mkono V Commissioner General VAT Tax appeal case No 6 of
2004

WEBSITES

https://www.tos.go.tz Last accessed 1st May 2025 1200

http://trat.go.tz Last accessed 1st May 2025 1230

https://www.trab.go.tz Last accessed 1st May 2025 1300

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