Open university of tanzania a dissertation entitled. Experts at tanzania accounting and tax requirements, legal and compliance requirements. By landmass, tanzania is one of the largest countries in africa, th, making it larger than nearby kenya. The system had also assisted in improvement on tax compliance.
Morogoro by prisely meena a dissertation submitted in partial fulfillment of the requirement for the award of the degree of master of business administration mbacorporate management of mzumbe university 20. Tanzania amends capital gains tax rules to include change in control and single installment tax payment following the president of tanzania s assent of the finance bill, various amendments to the legislation came into effect on 19 october 2012. Improving tax compliance requires longterm reform efforts, beginning with strengthening the organization and management of the revenue agency, implementing robust collection sys tems e. Factors affecting tax compliance attitude in africa. Improving tax compliance international monetary fund. Jan 14, 2016 corporate law manual mzumbe university 1. The study used all the african countries as population, upon which sample. Tax compliance in tanzania analysis of law and policy affecting voluntary taxpayer compliance kibuta ongwamuhana. In this study, we explore factors that determine citizens tax compliance behavior in kenya, tanzania, uganda and south africa using attitude and perception data from the new round 5 of afrobarometer surveys. Mergers and acquisitions tax deloitte tax services. Due to importance of tax revenue and given that most public social services are funded by tax revenue, this study is bestowed on effective tax administration as an engine of tax collections. Evidence from kenya, tanzania, uganda and south africa merima ali merima. To eliminate double taxation, the regulations allow tanzania taxpayers to apply for a corresponding adjustment under the following circumstances. Tanzania is highly and contains a wide variety of animal habitats.
Breakthrough attorneys is an ultramodern legal practice based in tanzania having a spectrum of crossborders practices that cater for local and multinational corporations, financial institutions, government entities as well as business private individuals concerning their legal needs around the globe. To capture tax compliance attitude of individuals, we use an indirectly phrased question in order. Improving compliance requires a mix of both measures as well as additional measures to deter non compliance such as establishing a reasonable risk of detection and the effective application of penalties. Assessment of challenges facing the implementation of. Tax compliance, selfassessment and tax administration. Ebook tax compliance in tanzania as pdf download portable. The small and medium enterprises smes playa crucial role in employment creation and income generation worldwide. We work with clients to analyze whether the transaction structure is in line with company strategy, and help quantify the strategic value of tax risks and opportunities. With this turnover tax, tax compliance will be increased on the part of such small. Practical approaches for measuring revenue outcomes chapter 4. Tax compliance in tanzania mkuki na nyota publishers.
Tax compliance is a critical subject area both on account of its importance to. A similar tax system is used in the republic of south africa rsa. However, for companies the net gain realised shall be taxed at a corporation tax rate of 30% with the single instalment tax creditable. Consequently, it is rare for the irs to propose negligence or criminal penalties in largecase audits. This study offers an overview of the theoretical foundations for explaining tax compliance behavior. The second part consists primarily of a checklist of those elements that should be included in a tax administration law, except for matters concerning tax compliance, which are covered in. Taxpayers service charter tanzania revenue authority. Tax is the main source of government revenue not only for developed countries but also for developing countries like tanzania. Effects of the tax system in tanzania on investments and growth. The author argues convincingly that tax enforcement alone namely, detection and punishment of tax delinquency, will not of itself lead to highlevel tax compliance. For residents in tanzania the same is taxed at a single instalment rate of 10%, the disposal is taxed on the net gain realized. Tax non compliance is an area of concern for all government and tax authorities, and it continues to be an important issue that must be addressed.
The book focusses primarily on tax compliance in tanzania, but it also examines relevant data from the neighbouring countries of kenya, uganda, rwanda, and zambia, which have undergone tax administration reforms similar to tanzania and are equally concerned with tax compliance, the author does not limit himself to the african continent. Factors affecting tax compliant attitude in africa. Acquisition costs are deducted from the gross selling price. In tanzania, the full potential of the smes sector has yet to be taped. Tanzania accounting and tax, tanzania legal and compliance.
Analysis of income tax compliance levels among workers in. Merger control in tanzania antitrustcompetition law. Guide to fiscal information key economies in africa 2019. Intimating the concerned officers about the merger. The tanzania revenue authority tra administers the central government taxes. Measures of tax compliance outcomes a practical guide contents executive summary chapter 1. It proceeds from the premise that highlevel taxpayer compliance is essential to the success of the tax system. The researcher used a descriptive survey design, where mbeya region was chosen because is familiar. The study was carried out to assess factors influencing tax compliance in tanzania, a case of tanzania revenue authority located in at mbeya region. The paradox arises from the requirements under the income tax act, 2004 ita, which requires companies including ngos to file returns and pay taxes if any, while ngos through the definition provided by the nongovernmental organizations act cap. Pdf effect of electronic fiscal devices on vat collection in. Tax compliance is likely to become a more significant aspect of tax policy as most of the old problems remain and new considerations are raised by developments such as selfassessment, the emergence of the global economy and electronic commerce. The interest generated by the subject matter of tax compliance behavior has led to identification of several factors that are believed to influence. This book examines the problems of lowlevel tax compliance in tanzania.
The system to a great extent assisted in sealing loopholes of tax evasion in tanzania. An assessment of factors hindering the smes voluntary tax. The hindering factors to achieve full potentiality on tax revenue collection in tanzania, a case of tanzania revenue authority in temeke region, in partial fulfillment of the requirements for the degree of master of business administration of the open university of tanzania. Tanzania is well located in east africa, with dar es salaam port serving as a gateway for eight landlocked countries. Tanzania amends capital gains tax rules to include change. Managing and improving tax compliance 6 summary all revenue authorities are generally required to achieve as good a compliance outcome as possible i. In observing the tax laws and other laws of the land, tra performs its functions according to the service standards pronounced in this charter.
Analysis of income tax compliance levels among workers in the informal sector in nakuru central doi. Tanzania s tax on capital gains from businessinvestment income is 30%. Practical approaches for measuring voluntary compliance outcomes. Tanzania has 16 national parks plus a variety of game and forest reserves, including the ngorongoro conservation area. Regardless of time and place, the main issue faced by all tax authorities is that. In tanzania, however, the sale of a business in breach of the merger rules could be construed as an involvement in an infringement by the seller. Each type is classified according to the legal and effective incidence to the final payer. Tra,presentation on tax administration reforms in tanzania experience and challenges, 2011. The book focuses primarily on tax compliance in tanzania, but it also examines relevant data from the neighbouring countries of kenya, uganda, rwanda, and zambia, which have undergone tax administration reforms similar to tanzania and are equally concerned with tax compliance.
The paper examines the correlation as well as the effect of tax rate on tax compliance in africa using crosscountry data. Franzoni 1998 outlines the components of tax compliance as typically including. Transfer of documents and registers to the registry. These efforts will help to cultivate service culture which reinforces tax compliance and enhances a good tax system. Guiding principles for measuring tax compliance outcomes chapter 3. Voluntary tax compliance in tanzania from taxpayer perspectives.
Tanzania merger control lexispsl, practical guidance. In jurisdictions such as the uk and eu, it is the purchaser who bears the responsibility of ensuring observance of the merger control rules and the associated risk of noncompliance. Tax compliance is defined as the degree to which taxpayers meet their obligations under the tax law. The principal order is amended by deleting paragraph 2 and substituting for it the following. The value added tax 6 customs and excise duties 8 compliance with taxes 14j dealing with nonpayment of tax 143 conclusion 150 tax policy formulation and tax compliance 153 introduction 153 tax policy 153 the dichotomy between tax policy and tax practice in tanzania 163 the cause of conflict between policy and practice 173. Chapter 117 principal legislation tanzania investment centre. This is part of our collection of over 120 maintained national merger control guides. Whether tax incentives that encourage merger activity are desirable or not, it is important to know what their impact is.
Tanzania merger control lexispsl, practical guidance for. Innovations in tax compliance world bank documents. Correlation analysis variables vat collection compliance roll out enforcement. Electronic tax register, electronic fiscal devices, expert software, vat collection, tax. M international business law wales, uk joel laurent ll. It may still be true, however, that the possibility. The bookmarks to the left are provided for your convenience in navigatin g through this document. Factors enhancing tax payment compliance for medium taxpayers in the development of national economy.
According to gemmel and hasseldine 2014, tax compliance is generally concerned with tax evasion, tax avoidance, compliance and non. A conversation with xolani nyali, partner at panafrican law firm bowmans, on key issues on merger control in tanzania. How tax commitments can move tanzania towards universal. Transfer of documents relating to land to the registry. The bureau was established as part of the efforts by the government to strengthen the supporting institutional infrastructure for the industry and commerce sectors of the economy. A proposed merger must be notified to the commission by providing the memorandum and articles of association. In case the amalgamating company has unabsorbed loss andor accumulated business losses, to take the benefit of the same the transferee company shall comply with the conditions of sec. They focus on the determinants of tax compliance, respectively on economic and noneconomic factors nicoleta, 2011. We help analyze potential tax, accounting, labor, operational, and system issues before going to the market. A transfer pricing adjustment has been made in another country with which tanzania has a double tax treaty with regard to transactions that affect a tanzania taxpayer. Therefore, fcc will consider whether the post merger firm will result into either creation of a dominant position or strengthening the existing dominant position.
A case study of small and medium enterprises in dar es salaam, in fulfilment of the requirements for the award of the degree of master of business administration in corporate management mbacm of mzumbe university. Many proposed penalties are negotiated away during the appeal process. The structure of the tanzanian tax system differs from. Jun 01, 2009 the competition act defines a merger as an acquisition of shares, a business or other asset, whether inside or outside tanzania, resulting in the change of control of a business, part of a business or an asset of a business in tanzania. This study aimed to assess the challenges facing the implementation of using electronic fiscal device efd in tax collection in tanzania. Stay caught up on recent news stories involving the taxation system in tanzania, africa. In western tanzania, gombe stream national park is the site of jane goodalls ongoing study of chimpanzee behavior, which started in 1960. In jurisdictions such as the uk and eu, it is the purchaser who bears the responsibility of ensuring observance of the merger control rules and the associated risk of non compliance. This study attempted to revisit the situation, the outcome is expected to assist the efforts to stimulate and promote this important sector. These are taxes levied directly on peoples income from employment, business or ownership of property and an investment.
Tax compliance in kenya has been at its lows since independence, as witnessed by the low tax revenues. The case of tanzania revenue authority, kilimanjaro region in fulfillment of the requirements for award of the degree of masters of business administration mba of mzumbe university. Using a binary logit regression, we find some similarities, but also. Corporate tax is payable by tanzanian companies on their worldwide taxable income at the. This study focuses primarily on tax compliance in tanzania, but it also examines. P4h country focal point tanzania, the christian social services. A new regime for corporate restructuring in india 33 8. The determinants of individual income tax compliance estimating the impacts of tax policy, enforcement, and irs responsiveness department of the treasury internal revenue service publication 1916 rev. The objective of this study is to assess the impacts of the tax regime instruments, rates, administration and coverage on the growth of firms within five key sectors agriculture, tourism, mining, financial sector, and manufacturing and small businesses, in tanzania. Tax compliance, political economy, trust, policy reform. For purposes of scope of mergers in tanzania the competition act defines a merger as an acquisition of shares, a business or other asset, whether inside or outside tanzania, resulting in the change of control of a business, part of a business or an asset of a business in tanzania. Subscribe to tax notes today for all tax related topics. However, capital gains from disposal of immovable assets face 10% tax rate. Stamp duty is levied on the acquisition of real property, or rights in or to such property, share transfer.
This will be achieved through improving efficiencyin tax administration and broadening the tax base in order to collect more revenue especially from specialized sectors like mining, oil and gas, telecommunications, tourism, construction, real estate, finance, high networth individual hnwi. University of cape town,faculty of law,department of commercial law, 2011 cited yyyy month dd. Corporate tax compliance and financial reporting 423 1 2 1 2 examined, the concept of true taxable income is elusive. Basically taxation in tanzania is in form two types of taxes. The authors identified 18 studies meeting the above criteria.
Factors influencing tax compliance among small and. Jul 02, 2010 in jurisdictions such as the uk and eu, it is the purchaser who bears the responsibility of ensuring observance of the merger control rules and the associated risk of non compliance. Regulatory system in mergers and acquisitions in tanzania. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Import customs duty may be charged up to 25% depending on the nature of the good. Notification of a merger order, 2006 hereinafter referred to as the principal order. Impact of tax administration towards government revenue in.
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