Tax officials told to adhere to laid down standards

HILDA MHAGAMA

Assistant Commissioner of Fiscal Policy in the Ministry of Finance, Mr Shogholo Msangi.

TAX officials have been urged to adhere to agreed standards envisaged by the tax regulatory board which will bring all registered tax practitioners together under an effective framework for the benefit of the country.

The call was made in Bagamoyo by the Assistant Commissioner of Fiscal Policy in the Ministry of Finance, Mr Shogholo Msangi, during a one-day stakeholders’ workshop on regulations for tax practitioners in Tanzania.

Mr Msangi said stakeholders should create a level playing field that is desired in tax administration. Tax practitioners should consistently be monitored and regulated across the country.

“Any efforts to bring all players in the framework should adhere to agreed standards and the government wishes to see to it that the overall process should be conducted in a fair, open and objective manner,” he noted.

He further said the government interest in the agenda stems from the basic belief that tax policies and administration play an important and positive role in a country’s development, therefore there was a great need for regulating the profession.

Though he was very optimistic on the board to be established sooner, he said it was not easy to reveal the exact timeframe for official inauguration but he said after stakeholders meeting their views will be submitted to the ministry for further measures to be taken.

The workshop organised by Tanzania Revenue Authority (TRA) and National Board of Accountants and Auditors (NBAA) gathered tax officials, academicians and lawyers to discuss on the formation of tax practitioners regulatory board.

Earlier, Institute of Tax Administration Rector, Prof Isaya Jairo, said tax practitioners emanate from different professionals and most of them were regulated by their own rules and regulations applicable to each profession whereas others do not belong to any of the professional bodies.

“It is crucial to have an independent board to oversee the registration and deregistration process as of current TRA is till responsible to handle both tax collection and regulating practitioners,” he elaborated.

Prof Jairo said the board will solely control and monitor tax practitioners also provide support education and related services to tax. On model for regulating tax practitioners, he said they have proposed to have tax practitioners registered and regulated under separate unit within NBAA as a nurturing process.

The Rector said while the process will be going on efforts will then be made to establish an independent regulatory board with appropriate structures and infrastructure to regulate tax practitioner.

A participant who is the Tax Trainer at NBAA, Mr Rashid Mganwa, said the board will releave the burden from TRA and let them solely concentrate on tax collection.

Mr Mganwa said TRA has been delaying in interpreting some of the issues as they have large work load something which led to each tax practitioner to have their own interpretations especially when it comes to new laws and regulations.

ITA, Head of Customs and Tax Studies, Mr Joseph Chikongoye, said other countries like South Africa and Ghana were already having such boards. He added for East African countries Tanzania will be the first country to establish such board.

Mr Chikongoye recommended that Tax Administration Act of 2015 and its regulations should set legal framework that require all people who give tax advice or complete tax returns to register with professional boards.