Independence of the tax ombudsman service, trab, and trat from the tra

[Respicius Mwijage]

“A Pillar of Fairness and Trust”​

Introduction

During the swearing-in ceremony for newly appointed government officials, President Hon. Samia Suluhu Hassan emphasized the significant responsibilities of the newly appointed Commissioner General of the Tanzania Revenue Authority (TRA). In her keynote address, President Samia proposed integrating the Tax Ombudsman Office of Tanzania (TOST) into the TRA as a department. However, global best practices in tax administration underscore the importance of maintaining the Tax Ombudsman’s independence from the taxing authority. This principle of independence should similarly apply to the Tax Revenue Appeals Board (TRAB) and the Tax Revenue Appeals Tribunal (TRAT), extending beyond mere legal provisions to include operational practices.

This article explores the critical need to preserve the autonomy of TOST, TRAB, and TRAT from the TRA. The primary role of the Tax Ombudsman is to provide an independent and impartial forum for addressing taxpayer grievances and administrative complaints. Upholding this independence is essential for ensuring transparency, accountability, and fairness in tax administration, which in turn fosters greater taxpayer confidence and compliance. Additionally, an independent Tax Ombudsman can recommend systemic improvements and ensure equitable treatment for all taxpayers.​

Independence and Impartiality

To ensure fair and unbiased decisions, the Tax Ombudsman Service, the TRAB, and the TRAT must operate independently from the TRA. If these bodies were controlled by the TRA, which is responsible for both collecting and enforcing taxes, there would be a high risk of conflicts of interest. Such independence is essential for resolving disputes between taxpayers and the TRA impartially.

Maintaining public trust is critical in the tax dispute resolution process. If the entities handling tax disputes were part of the TRA, taxpayers might view the system as biased, potentially discouraging them from pursuing their claims and damaging the overall credibility of the tax system.​

Checks and Balances

An independent TRAB and TRAT act as crucial safeguards against potential misuse of power by the TRA. They function as counterweights, ensuring that the TRA remains within its legal limits and does not engage in unfair practices. This separation of powers is vital in a democratic system to prevent any single entity from becoming too powerful or abusing its authority.

Independent bodies are generally more transparent in their operations and decisions. They are subject to public scrutiny, which fosters trust in the tax administration system. This transparency ensures that the TRA’s actions are reviewed impartially, contributing to a fair and accountable tax system.​

Specialization and Expertise

The Tax Ombudsman Service, the TRAB, and the TRAT are specialized organizations with deep expertise in tax law and resolving tax disputes. Their independence is crucial because it allows them to hone their specialized knowledge and skills, which benefits taxpayers by ensuring high-quality and expert adjudication of tax-related issues.

These bodies offer impartial oversight and interpretation of tax laws, making sure that the TRA applies these laws accurately and fairly. Their independence enables them to adopt a comprehensive view of tax issues, balancing both government interests and taxpayer rights effectively.

Public Confidence and Trust
Trust in the tax system is essential for ensuring that taxpayers voluntarily comply with tax laws. When individuals feel confident that they will be treated fairly and that there are reliable and unbiased ways to resolve disputes, they are more likely to follow tax regulations. Independent adjudicative bodies, such as impartial dispute resolution mechanisms, play a key role in fostering this trust.

When taxpayers know that their concerns will be handled fairly and without bias, they are more inclined to adhere to tax laws. This sense of fairness can lead to increased tax compliance and an expanded tax base, benefiting the overall system.

Legal and Institutional Framework
The legal and institutional framework in many countries with well-developed tax systems involves having separate and independent bodies to handle tax disputes. By adopting this approach, Tanzania can align with international best practices, which can enhance its reputation and appeal to investors. This shows a commitment to upholding the rule of law and practicing fair taxation.

Maintaining the independence of these bodies is crucial for preserving their integrity. It ensures that their decisions are based solely on legal principles rather than being influenced by administrative convenience or pressure from the TRA. Upholding this institutional integrity is essential for the long-term effectiveness and sustainability of Tanzania's tax administration system.

Conclusion
The independence of the Tax Ombudsman Service, TRAB, and TRAT from the TRA is essential to ensure fairness, impartiality, accountability, and public trust in the tax system. By maintaining this separation, Tanzania can foster a tax environment that is perceived as just and credible, ultimately leading to better compliance and a more robust tax administration.​

 

[Bufa]

CC Dr. Mwigulu Nchemba

 

[M.Rutabo]

What is important here is to make sure all these institutions are decentralised to local level. I am not exactly sure If TRAB and TRATS operates in district and regional levels. I don’t even think if normal and small business men are aware of the existence of these three important institutions for proper tax administration and enforcement in our country.

 

[Mohamed Abubakar]

Ungetuletea kwa lugha yetu mama japo kwa muhrasi tuweze kuchangia.

Mfano tungeweza kujibu maswali haya ungekuwa umerahisisha.

1. Kwanini rais alishauri hili.

2. Mfumo wa sasa ni upi

3. Una changamoto gani

4. Ushauri wa rais waweza kuondoa changamoto hiyo

5. Ushauri wako ni nini ili kuondoa changamoto hiyo.

6. Case study ya rais.

7. Case study yako

8. Weye utatatua vipi changakoto.

9. Changamoto zipi zitajitokeza

kwa uoni wangu hii ndio mijadala unayoihitaji kama watz.

Lkn kuna mijadala mengine muhimu zaidi.

Binafsi nipo ktk urafiti. Ningependa kujua kama hutojali.

1. Mzunguko wa pesa wa biashara kwa wafanyabiashara na wachuuzi nchini.

2. Mzunguko wa pesa wa biashara na wawekezaji mchinu.

nb: sizungumzii uwekezaji, nazungumzia transaction za local na transaction ya foreign investers kwa tz.

Kwa lugha nyepesi GDP ni nini na vipi uhalisia wako kwa mwananchi alieko kijijini.

Kwanini jamii inafocus kwa bajeti ya serikali badala ya basi ya sector binafsi