Tax Disputes Resolution

 

Tax Disputes Resolution

Is an out of court disputes resolution mechanism established by tax laws to settle all tax disputes arising in course of tax administration and enforcement of tax legislations. Tax disputes arise when tax assessments are not agreed by a taxpayer. When a taxpayer thinks that tax assessments are not correct, he is entitled a right to object the tax assessment by filing an objection. A taxpayer aggrieved by tax assessment is only allowed to file objection after payment of 1/3 of the assessed tax otherwise his objection will not be determined. After an objection is determined, aggrieved taxpayer may appeal to Tax Revenue Appel Board, later to Tax Revenue Appeal Tribunal and Court of Appeal of Tanzania. The tax dispute mechanism of Tanzania is provided between section 50 and 53 of the Tax Administration Act[1] and between section 4 and 17 of the Tax Revenue Appeals Act[2]. TRAB and TRAT are guided not to receive, hear and determine tax objections matters unless taxpayers have complied with payment of 1/3 of assessed tax.

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

[2] The Tax Revenue Appeals Act, Cap 408 R.E. 2019