Tax Compliance

 

Tax Compliance

Is the action by taxpayers to pay the right amount of tax at a right time and by adhering to all requirements of taxation laws. The governments worldwide have established tax compliance policies in their countries with the aim to influence tax payment by tax payers. To motivate taxpayers to pay tax in Tanzania, the taxing authority TRA introduced awards to best taxpayers where by corporates and institutions receives awards by being best taxpayers who comply with tax laws. Tax compliance is mandatory and not a choice, failure to comply with taxation laws is a serious crime which may lead to heavy fines, suspension of business licenses or criminal charges to offenders as provided under section 82-90 of The Tax Administration Act.[1]

[1] The Tax Administration Act [CAP. 438 R.E 2019]