The Tanzanian government has unveiled the Tax Ombudsman Service Tanzania (TOST), an independent entity established to handle complaints from taxpayers, signaling a significant step toward ensuring fairness and transparency in tax administration.
TOST's primary mandate revolves around overseeing the tax administration process, ensuring equitable tax assessments, and fostering compliance among taxpayers.
Operating as an independent body, TOST will serve as a platform for taxpayers to submit accurate and impartial grievances concerning tax administration, focusing on tackling issues such as corruption, arbitrary tax assessments, unwarranted business closures, and similar concerns.
Mr. Robert Manyama, the Tax Ombudsman of TOST, elucidated during a recent session with editors and journalists in Dar es Salaam that the establishment of TOST aims to expedite the resolution of tax disputes, thus potentially reducing the number of cases brought to court.
"By offering an avenue for amicable dispute resolution, TOST intends to decrease the burden on courts, instill confidence among taxpayers in the tax administration system, and ultimately enhance tax compliance," stated Mr. Manyama.
Highlighting the core values of transparency, efficiency, and simplicity in handling complaints, Mr. Manyama stressed the significance of maintaining a positive rapport between taxpayers and the tax authority.
TOST will function as an impartial mediator, addressing complaints related to the taxpayer charter, clients' bill of rights, and allegations of procedural maladministration within the Tanzania Revenue Authority (TRA).
Moreover, Mr. Manyama urged taxpayers to leverage TOST's services, emphasizing that resorting to legal procedures could be time-consuming and costly. TOST aims to resolve complaints within a reasonable time frame of 30 days from the filing date.
Businessman Mr. Beda Ambrose from Dar es Salaam expressed optimism about TOST, envisioning it as a potential savior for businesspeople if it operates with fairness and delivers justice.
Historically, tax disputes in Tanzania followed an adversarial route, lacking avenues for amicable resolution and necessitating appeals to higher courts. This approach led to unresolved disputes accumulating interest over time, placing a burden on taxpayers.
However, with the introduction of the Finance Act, 2021, the landscape has shifted, allowing for mediation of tax disputes at the Tax Revenue Appeals Board (TRAB) and the Tax Revenue Appeals Tribunal (TRAT) as per the rights granted to parties involved in a dispute under this Act.