TRA: New tax, customs systems to address taxpayers disputes

DAR ES SALAAM: THE Tanzania Revenue Authority (TRA) is set to implement the Integrated Tax Revenue Administration System (ITRAS) alongside the Tanzania Customs Integrated System (TANCIS) to address disputes and streamline interactions with taxpayers.

Speaking in Dar es Salaam on Thursday, TRA Commissioner General, Yusuph Mwenda, announced that the phased rollout of ITRAS will commence in January next year.

He explained that discrepancies in past records have been a major cause of accumulated tax debts and the new systems aim to mitigate these issues by ensuring greater accuracy and efficiency.

“The introduction of ITRAS and TANCIS will help us address discrepancies and reduce the challenges that have led to debt accumulation. Our goal is to ultimately eliminate these obstacles,” Mr Mwenda stated during a meeting with leaders from banks and financial institutions.

During the meeting, TRA Commissioner General addressed recent concerns from taxpayers regarding the authority’s use of its powers to recover unpaid taxes from banks through agency notices, which designate financial institutions as tax collection agents.

Commissioner Mwenda explained that the issuance of an agency notice is a last resort in the tax recovery process and several preliminary steps must be taken first.

These steps include issuing a demand notice, followed by reminders if there is no response and engaging in discussions with the taxpayer, which may include options for installment payments.

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“Only when these measures fail does the authority proceed to issue an agency notice,” Mr Mwenda said.

“As you can see, it is a thorough and gradual process, aimed at providing ample opportunity for resolution before taking this step,” he noted.

He emphasised that TRA’s goal is not to harm taxpayers but to build a reliable system for tax collection, urging taxpayers to continue investing in financial institutions without fear, assuring them that their funds will remain safe.

The Executive Director of the National Bank of Commerce (NBC) and Chairman of the Tanzania Bankers Association, Mr Theobald Sabi, commended TRA’s efforts to clarify the process for issuing agency notices, noting that it would help restore trust among bank customers by ensuring their funds are protected under proper procedures.

“We appreciate the TRA’s initiative to foster dialogue, which helps create a more favourable environment in the banking sector,” said Mr Sabi.