Tangazo

April 10, 2013

Tanzania, neighbours to curb tax evasion

TRA Boss Harry Kitilya
Tanzania is working in collaboration with five neighbouring countries to set up a regional monitoring system aimed to fight cross border tax evasion and theft of goods.

This was revealed yesterday by Tanzania Revenue Authority (TRA) Commissioner General Harry Kitilya during a familiarisation tour of the Democratic Republic of Congo custom office in Dar es Salaam.

Other countries involved in the plan are Malawi, Zambia, Kenya, Uganda and Mozambique.
“We’re working with these countries to implement a single system that will help to minimise or end tax evasion,” Kitilya said.
Advancements in technology, he said, will help widen the system, thus increase tax collection.

“Tanzania will work in partnership with other countries to establish a single network to ensure that goods reach at their final destination safely and tax is paid accordingly,” he explained.
The system will also help in knowing the actual goods registered reached the owners as they were shown in the form when packed at the port, he noted.

Explaining how theft of transit goods will be reduced, Kitilya said that customs forms will be sent to the destination border a day before the goods are transported, adding that customs officials will be in a position to know the size of the consignments before arrival at the border a day before.

However, he, cautioned tax evaders, including foreign businesspersons to adhere to procedures to help them continue with their ventures.

“I am sure the dirty game (tax evasion and theft of goods) will end soon after the introduction of the monitoring system,” he confidently said.

DR Congo customs representative in Tanzania Peter Molishi said since the establishment of his country’s office, tax collection has increased in some regions of the vast mineral-rich nation.

“We monitor every vehicle that transports goods to our country to curb tax evasion,” he said.

He vowed to work closely with TRA in fighting the vice to increase tax collections in both countries.
Last month, TRA disclosed a plan to introduce an online tax-paying system which will reduce clients’ regular visits to pay points and save time.

TRA Taxpayers Education Manager Diana Masalla said that the system would be in place beginning next month.

She said her agency has already carried out pre and post-assessments of the system, revealing potentials in the entire collection of revenues.

“We’re not afraid of cyber crime, our officers have proved that the system can be efficient that’s why we’re going to adopt it,” she said.

She said once put in place the system would network payments from taxpayers to the bank and will in turn notify the Bank of Tanzania (BoT), which would process and notify TRA.
The authority will then inform the client about the completion of the payment through a mobile phone. 
Source: The Guardian April10.2013

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