GROUP ASSIGNMENTS/SEMINAR
1. Principles of taxation as propounded by Adam Smith are useful in shaping tax laws. With
authorities, show how these principles are relevant or otherwise under the methods and
procedures of payment of income tax in Tanzania.
2. Value Added Tax (VAT) is essentially a consumption tax charged on taxable goods and
services. With authorities, elucidate how the input-output principle is relevant under the
Tanzania VAT regime.
3. Mwakibusi owns a registered secondary school in Mbeya City. The school offers both
ordinary and advanced level education from form one to form six. The school is specialized
in science subjects. This school has been doing well in form two, four and six national
examinations every year. It has a huge laboratory with all necessary equipment and
reactants for all science subjects. Since inception of the school, all equipment and
chemicals have been bought within the country. Over the last few days, Mwakibusi is
informed that, import could cut half of the cost he has been using to buy these products.
Mwakibusi has strived in vain to get information on the liability of Value Added Tax on the
prospective transaction.
Required: Advise Mwakibusi on the tax implication of the anticipated import.
4. Zamoyoni has started a business specializing in supply of oil cake in Mbeya City. He supplies
oil cake of soya beans, cotton seeds, sunflower seeds and maize bran. Although he is a VAT
registered person, he does not know if he is required to pay value added tax in respect of
the supplies.
Required: Advise Zamoyoni on the liability of value added tax arising from the business.
5. John, a taxpayer, received an assessment notice from the Tanzania Revenue Authority
(TRA) for income tax. John disagrees with the assessment and wants to file an appeal with
the Tax Revenue Appeals Board (TRAB). However, he is unsure about the specific
procedures involved in filing an appeal.
Required:
(a) State the steps John needs to take to file an appeal with the TRAB
(b) Which documents should John attach to his appeal?
(c) State the time limits and fees requirements associated with filing the appeal
6. With relevant authorities and examples, examine how the value added tax on supplies
operates in Mainland Tanzania.
7. The milk industry is a lucrative business that has attracted many people to invest in it.
Mkwera Milk Co. Ltd, operating milk production in Iringa Town, affirms that the business
is a well-paying investment which has been pocketing the Company with more than TZS
300,000,000. Mkwera Milk Co. Ltd.’s business is specialized in the production of fresh cow
milk and yoghurt. In producing the milk product, they add flavour in order to attract more
customers. Since the business is lucrative, Mkwera Milk Co. Ltd wishes to expand the
business by establishing milking plants in several regions within Mainland Tanzania.
Therefore, the Company plans to buy a good number of machines including milking
machines, hay making machines, cream separator, milk pumps and milk storage tanks.
Despite running a lucrative business, Mkwera Milk Co. Ltd. never paid value added tax.
Directors of the Company know nothing about value added tax. Meanwhile, they have
been informed by one of their employees that the economic activity and several other
transactions the Company is about to make are within the operation of the law regulating
value added tax in Tanzania. In spite of being informed on the value added tax, they do not
have sufficient information on the same.
Required: Considering the material facts above, advise the Directors on;
(a) The Company’s value added tax obligations under the Value Added Tax Act.
(b) The value added tax on the prospective transactions the Company is about to make.
8. Kiwasensi Textiles Ltd, a medium-sized textile manufacturing company, has been facing
ongoing issues with the Tanzania Revenue Authority (TRA) regarding its tax assessments
and compliance. The company's finance manager, Chegwa, has been trying to resolve
these disputes, but he is unsure about the appropriate channels to pursue. Earlier this year,
the TRA issued a tax assessment against Kiwasensi Textiles, claiming that the company had
underreported its sales and income. Chegwa believed the assessment was unfair and
inaccurate, as the company had diligently complied with all tax obligations.
Unsure of his options, Chegwa first approached the Tax Ombudsman's Office, hoping they
could investigate TRA’s actions and provide a resolution. However, the Ombudsman's staff
informed Chegwa that the matter was outside their jurisdiction. Disappointed, Chegwa
then decided to file an appeal with the Tax Revenue Appeals Board (TRAB), as he had heard
that this was the appropriate avenue to challenge the TRA's decision. However, when he
submitted the appeal, the TRAB secretariat rejected it, stating that the Ombudsman's
Office should have first investigated the issue before the TRAB could consider the appeal.
Feeling increasingly frustrated and unsure of the proper procedures, Chegwa reached out
to you, a tax consultant for advice. Advise him accordingly on:
(a) Whether the Ombudsman’s staff erred in their response to Chegwa
(b) Whether the decision by the TRAB secretariat is correct in law
(c) What procedures, if any, is he required to follow to have the matter resolved
authoritatively?
9. “The right to be heard is not exclusively meant for ordinary courts. Even the Tax Revenue
Appeals Board and the Tax Revenue Appeals Tribunal have the duty to accord parties their
right to be heard.” With the aid of tax cases validate the statement above.
10. Kudadi is a foreigner who has been conducting mining activities in Tanzania for more than
twenty years. In recent years, his business has not been doing well. To cut the story short,
for two consecutive years, his business has been running under loss. Due to this trend,
Kudadi has decided that he is closing the business, and in the next week, he will be leaving
the country indefinitely. He has already booked a flight for his plan. For some reasons not
disclosed, Kudadi did not pay tax accruing from his business for three years before the
change of circumstance of his business, the information that was not known to the
Commissioner General.
The commissioner comes to the knowledge that Kudadi had an income taxable from his
business and the tax was not paid to the government. Also, the Commissioner is informed
that Kudadi is about to leave the country indefinitely. The Commissioner worries that if the
tax is not collected within a week, the government is likely to lose the revenue.
Required: Advise the Commissioner on the procedure he may employ to recover tax from
Kudadi.
11. “Income tax rules in Tanzania favour employees more than business owners.”
(Anonymous) Do you agree? Discuss.
12. During the 2023 National Law day celebrations, the Chief Justice made remarks on the
constitutional guarantees given to religious institutions against interference by the state
apparatus. Is the position equally true when considering the Taxation of Income from
religious operations? Discuss.
13. HAZ attorneys has recently employed you as a legal officer. On the first day of your work,
you were introduced to Mr. Isaack Akilimali, a preacher from Congo DRC who wants to
establish a missionary centre in Tanzania. The centre is intended to contain a primary and
secondary school for orphans; a rehab house for drug addicts who can pay for their own
treatment; and a church for evangelization. He also aims at establishing an Italian
restaurant, so that he can raise funds for operating the Centre. He has received different
advices from different people on the form of organization that he can use to conduct his
dealings in Tanzania. Some are suggesting that he should register a company, others tell
him that he must create a Non-governmental Organisation, while others are saying he can
register a church as a Society under which his intentions can be realized.
At your firm, he seeks guidance on how Tax rules best accommodate his interests. The
managing partner, knowing that you have studied Tax Law, has assigned you the task.
Advise Mr. Akilimali accordingly considering each intended activity.
14. Banking and tourism sectors grow rapidly in the country, hence, are tax productive areas.
Explain how VAT is charged on financial and tourism services in Tanzania.
