Academic literature on the topic 'Tanzania revenue authority'

AbstractThis study provides an exploratory review of the trends, policy reforms, and determinants of fiscal deficits in Tanzania during the period 1980-2017. During this period, the country undertook various fiscal policy reforms intended to improve revenue mobilization and expenditure efficiency. The most significant of these reforms included the introduction of the semi-autonomous revenue authority and an extensive public financial management reform program. While the post-independence period was characterized by large fiscal deficits, recent trends show that fiscal deficits in Tanzania have been contained, even as some public investment management challenges exist. The review of trends and literature suggests that fiscal deficits are linked to the structure of the economy, low levels of development, donor aid and grants, as well as the overall macroeconomic environment. In particular, fiscal deficits are associated with growth cycles, inflationary episodes, and external sector developments.

Outsourcing revenue collection in Local Government Authorities has been adopted as a mechanism to solve the previous problems of revenue collection which resulted into loss and missmanagement of the whole process. One of the expectations was to increase revenue collection which will provide a room for fiscal autonomy. However, experience from few local government authorities which have outsourced their revenue collection shows that, the whole process of outsourcing has not yielded the expected outcome especially on enabling local authorities to have fiscal autonomy instead it has turned to benefit the private agent who collect Tax. By using secondary data this paper attempts to show how the process of outsourcing is benefiting the private agent and therefore it is like giving everything out. It concludes that, though outsourcing seems to benefit local authorities by reducing some tasks especially on tax collection, outsorcing benefits much a private agent and therefore quick meausures should be adopted including building the capacity of Local Authorities in identifying the sources of revenue and in estimating the actual collections so as to have clear picture of how much will be generated by the agent and what should be the appropriate amount to be submitted to the Local authority.

This paper presents three propositions about tax collection by local authorities in Tanzania. First, revenue performance depends on the degree of coercion involved in tax enforcement. Reciprocity does not seem to be an inherent component of the state–society relationship in connection with local government taxation. Second, the extent of coercion depends on the bargaining powers of the stakeholders involved in the tax enforcement process. In particular, coercive tax enforcement is facilitated when the ‘bargaining powers’ with respect to tax collection favour the council administration, and the elected councillors have no direct influence on collection. Third, the presence of donors in a local authority may be crucial by changing the ‘balance of power’ in favour of the council administration, with implications for accountability, responsiveness and democratic development. These results may explain why widespread differences in revenue performance between local authorities are observed.

In spite of the importance of Micro Businesses (MBs) in forming a wide tax base, there isn’t a clear practical approach to tax administration of MBs in many developing countries. Specifically, there is limited information on how digital technology can address tax administration challenges for MBs. This paper explores the potentials of digital technology to enhance tax revenue collection and its administration to Micro Businesses in the Tanzanian context. The data on tax administration, challenges impeding tax administration to MBs, and the potential of digital technology used in tax administration were collected by questionnaire and interview. Interviews were conducted with 24 informants from Tanzania Revenue Authority, and 137 Micro Business candidates from various business sectors were provided with a questionnaire in Dar es Salaam, which is the head office of tax administration and the economic hub of Tanzania. Thematic approach was used to analyse the qualitative data. Descriptive statistics was used to analyse quantitative data through SPPS. The findings revealed that the current tax practices to MBs do not comply with tax theories of low administration cost, wide tax base, and simple-to-administer tax procedure. The findings revealed that the challenges like lack of record keeping, lack of knowledge on tax payment procedures, unknown tax collection channels, and multiple taxes can be tackled by establishing strong relationship mechanisms between TRA and MBs and using digital technology solutions to tackle challenges. The study suggests some digital technology solutions to address the challenges. Leading to that practical aspect of tax administration that can guide policy makers and tax administrators was introduced.

Socio-technical systems theory has rarely been used by system architects in setting up computing systems. However, the role of socio-technical concepts in computing, which is becoming social in nature, has made the concepts more relevant and commercial. Tax information systems are examples of such systems because they are influenced by external variables such as the political environment, technological trends, and social environment, introducing complexity in their deployment and determining the type of e-services and their delivery to a diverse group of people. It was observed that in Tanzania there is resistance, reluctance and minimal use of electronic tax system because of insufficient end-user support and their involvement in constructing the system. Therefore, there is need to develop an electronic tax information system using socio-technical systems perspectives to ensure design of an efficient user-friendly tax administration system. The research used the qualitative approach, featuring case studies in Korea, Chile, Tanzania, and Denmark. The study used best practices from the Organization for Economic Cooperation and Development (OECD) to benchmark Tanzania Revenue Authority current practices. It was found that tax models implemented are techno-centric push models, which don’t attract its use by tax payers and requiring human intervention in its operation, hence not cost-effective. As the first and relevant phase in socio-technical system development, this paper presents the problem definition and analysis of e-Tax collection system in Tanzania.

There is a growing demand of Biological diversities uses in the world as a global asset of tremendous value to the present and future generations. This demand has raised threats to species and ecosystems existences. The Convention for the Biodiversity forum for Aichi Biodiversity identified about 5 strategies and 20 targets for the conservation of the biodiversity of the protected areas. The Community Based Diversity is the main goals that promoted by the Aichi targets as to protect biodiversity; to use biodiversity without destroying it; and, to share any benefits from genetic diversity equally. Tourism in Tanzania is basically based on biological diversity for about 69% in protected areas in Mainland and 31% at beaches in Zanzibar. All those biological diversities needs clear programs for the conservation and protection of flora, fauna and the environment to facilitate jobs and wealth creation for the indigenous population who often pay a cost in lost land usage for conservation and tourism. The Ngorongoro Conservation area with its uniqueness has about 87,851 people living within and a growing tourism population of about 647,733 visitors by the year 2013, and highly diversity of wildlife respectively. Community in the Ngorongoro counts tourism as an alternative activity that supports their livelihood. For the purposes of this study a survey of 100 local Maasai and oral interviews of 60 employees of the NCA’s and Pastoral Council (PC), examines whether tourism revenue sharing to the Maasai communities within the area has a positive support impact on conservation of biological diversity of the area as stipulated in the Convention on Biological Diversity (CBD). I found that members of the Maasai community within the area of Ngorongoro are benefiting from Tourism and support the conservation strategies of the Authority positively. Nevertheless the benefits to communities within the protected areas like the Ngorongoro should properly structured as may reduce the natural resources existence basing on the nature and its driving forces that accelerate the population increases within and around the protected areas.

Abstract The paper analyzed policy effects of Double Taxation Agreements (DTA) between Tanzania and India. The study employed desk study and mini-field research survey purposely to obtain primary data and qualitative information from the Tanzania Revenue Authority (TRA), High Commission of India and Indian companies. The paper found that Tanzania has no comprehensive national taxation policy which incorporates DTAs. The current treaties do not protect the government revenue losses. The loopholes include the denial of taxing the gains made by investors selling assets. However, the contribution of Tanzania-India DTAs in Foreign Direct Investment, (FDIs) flow in Tanzania has been significant positive. Indian FDIs have positive effects on Tanzanian employment. Moreover, the investments from India have brought massive capital flows and new technologies into the country. Tanzania-India DTA is more potential for sustainable national development. The study recommends the need to review and formulate New National Investment Policy 2019 that effectively integrate into sustainable fiscal and sector policies. Tanzania has to review all DTAs with aim of minimizing government revenue losses and to renegotiate all existing DTAs adopting UN Model Tanzania. It has to rationalize favoured bilateral treaties to signal their commitments to stable, correct, and often favourable treatment of foreign investors. Tanzania has to implement the Goal #17 of Sustainable Development Goal as that of “Partnering for Development” as a strategy to strengthen the means of implementation and revitalize the global partnership for sustainable development.

Many studies have shown the importance of Micro Businesses in widening the tax base. However, a practical approach regarding tax administration of micro businesses has so far never been explored. Additionally, information on the manner in which digital technology addresses challenges of tax administration in the Tanzanian context is limited. Therefore, this study explores the potentials of digital technology in enhancing tax administration of micro businesses. Specifically, the study looks at the current tax administration of micro businesses, the challenges thereon, and the existing potentials of technological solutions in enhancing tax administration of micro businesses. The study used mixed method research approach whereby qualitative and quantitative data were collected through interviews and questionnaires respectively. Interviews were conducted to 24 informants from Tanzania Revenue Authority and questionnaires were administered to 137 micro businesses in Dar Es Salaam, Tanzania. Thematic approach was used to analyse qualitative data and descriptive analysis was used for quantitative data. The study finding reveal that the current tax practices to micro businesses do not comply with tax theories of low administration cost, wide tax base, and simple to administer tax procedures. Additionally, micro businesses face multiple levies, informal operations, and complexity of tax systems that make compliance to tax administration difficult. Moreover, this study established that mobile technology is potential for addressing the challenges. The study contributed to the practical aspect of tax administration that can guide policy makers, researchers and tax administrators in tax administration of micro businesses.

Tax amnesties have taken centre stage as a compliance tool in recent years. The OECD estimates that since 2009 tax amnesties in 40 jurisdictions have resulted in the collection of an additional €102 billion in tax revenue. A number of African countries have introduced tax amnesties in the last decade, including Nigeria, Namibia, South Africa and Tanzania. Despite their global popularity, the efficacy of tax amnesties as a tax compliance tool remains in doubt. The revenue is often below expectations, and it probably could have been raised through effective use of regular enforcement measures. It is also argued that tax amnesties might incentivise non-compliance – taxpayers may engage in non-compliance in the hope of benefiting from an amnesty. This paper examines the administration of tax amnesties in various jurisdictions around the world, including the United States, Australia, Canada, Kenya and South Africa. The paper makes a cost-benefit analysis of these and other tax amnesties – and from this analysis develops a model tax amnesty, whose features maximise the benefits of a tax amnesty while minimising the potential costs. The model tax amnesty: (1) is permanent, (2) is available only to taxpayers who make a voluntary disclosure, (3) relieves taxpayers of penalties, interest and the risk of prosecution, but treats intentional and unintentional non-compliance differently, (4) has clear reporting requirements for taxpayers, and (5) is communicated clearly to attract non-compliant taxpayers without appearing unfair to the compliant ones. The paper then focuses on the Ugandan tax amnesty introduced in July 2019 – a Voluntary Disclosure Programme (VDP). As at 7 November 2020, this initiative had raised USh16.8 billion (US$6.2 million) against a projection of USh45 billion (US$16.6 million). The paper examines the legal regime and administration of this VDP, scoring it against the model tax amnesty. It notes that, while the Ugandan VDP partially matches up to the model tax amnesty, because it is permanent, restricted to taxpayers who make voluntary disclosure and relieves penalties and interest only, it still falls short due to a number of limitations. These include: (1) communication of the administration of the VDP through a public notice, instead of a practice note that is binding on the tax authority; (2) uncertainty regarding situations where a VDP application is made while the tax authority has been doing a secret investigation into the taxpayer’s affairs; (3) the absence of differentiated treatment between taxpayers involved in intentional non-compliance, and those whose non-compliance may be unintentional; (4) lack of clarity on how the VDP protects the taxpayer when non-compliance involves the breach of other non-tax statutes, such as those governing financial regulation; (5)absence of clear timelines in the administration of the VDP, which creates uncertainty;(6)failure to cater for voluntary disclosures with minor errors; (7) lack of clarity on VDP applications that result in a refund position for the applicant; and (8) lack of clarity on how often a VDP application can be made. The paper offers recommendations on how the Ugandan VDP can be aligned to match the model tax amnesty, in order to gain the most from this compliance tool.