Ark Alert – Tax Amnesty

Tanzania implements a Tax Amnesty

You may be aware from the 2018/2019 Government budget reading in June 2018 that the Minister of Finance announced a tax amnesty for a 6 months period (July to December 2018) aimed at relieving taxpayers from interest and penalties due to non-compliance. We are now aware that the Tax administration Act 2015 has given powers to the Commissioner General of the Tanzania Revenue Authority (TRA) to remit interest and penalties through a Government Notice (GN) or the Order attached for reference.

Key highlights
  • The tax amnesty will cover all taxes administered by the TRA.
  • Taxpayers need to declare their principal tax liabilities and interest thereon then submit to TRA in a prescribed form.
  • Requests should be made on or before 30 November 2018.
  • The Order provides for tax settlement agreement options (where necessary) but the instalment period should be within the Government’s financial year i.e. no later than 30 June 2019.
  • Tax matters currently under objection, appeal, etc. can be concluded under this amnesty as the taxpayer deems appropriate (subject to taxpayer conceding on principal tax amounts).
  • Tax matters currently under tax audit or investigation by TRA are excluded from the tax amnesty. Other exclusions are set out in the Order.
  • Failure to utilize this opportunity may come with a cost (i.e. if declaration is made outside the amnesty period and if such non-compliance are later uncovered by TRA during their normal tax audits).
  • You can obtain more details on this from the attached GN.
Ark is all for you

This is an excellent opportunity to clear pending tax liabilities including formalizing any loose compliance ends. Our approach would be to conduct a thorough review of your taxation affairs to establish the principle tax liabilities including interest thereon. This approach would guide the taxpayers’ decision on how to proceed with this matter.
In case you require our assistance, kindly revert using our usual contact details. Otherwise we believe this alert is informative and helpful to you.

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ARK CONTACTS

John Shimbala, Director
Mobile: +255 766 798 508
Email: jshimbala@ark.co.tz

Godfrey Temba, Director
Phone: +255 767 810 970
Email: gtemba@ark.co.tz

Ark Associates Limited
369, Toure Drive
Oysterbay P O Box 23197
Dar es salaam, Tanzania
Tel +255 2222 96800

Email: info@ark.co.tz

This publication is intended to provide you with a general compliance guide and does not constitute a professional tax advice. Do contact us in case of any questions requiring a formal advice or position of the law.

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Ark is an association ark partners and associates. The entities have since 17 May 2016 been providing professional taxation, accounting, company administration, audit and assurance services.

The current Directors in office are:
John Shimbala and Godfrey Temba.

For more information please visit us at www.ark.co.tz