TRA updates EFD’s to curb forgery

HILDA MHAGAMA

TANZANIA Revenue Authority (TRA) has updated its Electronic Fiscal Device Management System to reduce the possibility of forgery of receipts from Electronic Fiscal Devices (EFDs).

The system which links the EFDs directly to the central severs in TRA has increased the management of information system for compliance.

TRA Acting Commissioner, Ms Neema Mrema, said the Electronic Fiscal Device Management System (EFDMS) have the security conditions in which for all transactions receipts will have an electronic signature and QR code thus reducing the forged receipts from unregistered machines.

“EFDMS also enhances transparency for the cessation of all receipts being reviewed also the system is capable of identifying if services were provided or not and to report if necessary,” Ms Mrema said during a one day tax seminar for government departments and institutions.

The seminar brought together large taxpayers in Dar es Salaam to make them acquainted with the Value Added Tax (VAT) Act 2014 and its regulations, Finance Act 2016, vitual EFD and withholding tax in some of the services.

Ms Mrema further said unfortunately, phase two of EFDs faced a number of challenges including taxpayers’ resistance to fully utilize the machines, pricing and after sales support services. As a result of these challenges, the implementation of EFD phase II has not yielded expected results yet.

Expounding further she said EFDs are therefore a proper record keeping tool for taxpayers and a very potent compliance management tool for TRA. On implementation of the revised withholding tax 2013, she said there were challenges for government departments and institutions. These challenges stem from various factors, including the lack of sufficient awareness on taxation is concerned.

She said they were also aware of the existence of confusion in the imposition of a withholding tax of 2 percent on the supply of goods to government departments and institutions of the central government budget based on 100 percent with the imposition of withholding tax of 5 percent in services.

Senior Accountant officer for Tanzania Sugar Board, Ms Devotha Sanga, said among the challenges they face regarding withholding tax was the rate applicable, as they do not know how much to deduct from an individual and companies as the rate has been changing frequently.

“Identifying fake receipt is another challenge we face as a company we are unable to know what is fake and what is real,” she noted.