Appeal Court set to settle ‘multi-millionshilling’ 26 tax appeal cases

FAUSTINE KAPAMA

 

THE Court of Appeal is set to determine 26 tax appeal cases involving several giant companies worth billions of shillings. It is a move aimed at implementing a recommendation by the Controller and Auditor General (CAG), Professor Mussa Assad

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In the annual general report he presented in the National Assembly in Dodoma last year, the CAG disclosed that there were tax appeal cases worth over 1.7 trillion/-, which have remained undetermined before Tax Appeals Bodies and Court of Appeal of Tanzania.

An investigation conducted by the ‘Daily News’ in Dar es Salaam last week revealed that the Chief Justice, Mr Mohamed Chande Othman, has assigned six justices of the appeal court, led by Justice Nathalia Kimaro, to hear and determine the cases within eight days effective February 15. Other judges in the case include Mr Salum Massati, Ms Katherine Oriyo, Mr Kipenka Mussa, Mr Augustine Mwarija and Ms Stella Mugasha.

The cases involve several companies in the country dealing with mines, commercial transactions and other big businesses. The companies include North Mara Gold Mines Limited, Bulyanhulu Gold Mines Limited, Geita Gold Mining Limited, Intestate Mining and Minerals Tanzania Limited, Mabangu Mining Limited, National Microfinance Bank PLC and KCB Bank Tanzania Limited.

Limited (TBL), Quality Group Limited, BP Tanzania Limited, Pan African Energy Tanzania Limited, Tanzania Ports Authority (TPA), Tanzania International Container Terminal Services (TICTS) and Kilombero sugar Companies.

The rest are Tanga Cement Company Limited, SBC Tanzania Limited, Tanzania Leaf Tabocco Company, G.S Contractors Limited, J.S.C. Atomredmetzoloto (ARMZ), Ms Uturn Grocery Store, South Com.

East Africa Limited, Orxy Company Limited, TSCAN and Pembe Flour Mills Limited. Recently, the Chief Court’s Registrar, Ms Katherine Revocati, was quoted saying that the Judiciary decided to give such cases high priority to speed up their disposal as recommended by the CAG in his report for the year ending June 30, 2014.

She disclosed that in every course list, matters involving the Tanzania Revenue Authority (TRA) would be included without fail. “We want these cases determined within the earliest possible time,” the registrar had said. In his report, the CAG had pointed out that during the audit, he noted that TRA has long outstanding cases before the appeals tax bodies and the Court of Appeal -- amounting to 1,716bn/-.

He stated that cases worth 261bn/- were stuck at the Court of Appeal while the remaining balance of cases, whose value amount to 1,455bn/-, were lined up before the Tax Appeals bodies.

Prof Assad had pointed out that the potential tied up to the revenues on appeals is 10 per cent of the total revenue estimates and three per cent of the nominal GDP for the year 2013/2014.

He stated, therefore, that hus, he stated, the value of taxes in dispute at the Tax Revenue Appeals Board and the Court of Appeal was high and cost the government resources to run cases for such a long time and, at times, loss of revenue when the appellants become bankrupt before their appeals are resolved.

The CAG, therefore, recommended that hearing of the cases should be expedited by the court systems. As for a long lasting solution, he proposed that the government sets up an Independent Complaint Commission to expedite the handling of appeals.

In addition, the CAG recommended that the management of TRA should strengthen and improve the audit and investigation to reduce tax disputes between the revenue authority and the taxpayers.

According to available procedures, whoever is aggrieved by an assessment made by the TRA on tax is required first to file a complaint before the board, whose chairperson should be a senior magistrate.

The decision of the board could be appealed against before the tribunal, whose chairperson is a judge of the High Court or any other person with qualification of being a judge of the High Court.

Thereafter, if a party is not satisfied by the decision of the tribunal, the law requires him to take his case to the Court of Appeal where the Chief Justices composes a panel of three justices to determine the appeal.