Panafrican Energy Case: Does it mean that Commissioner’s decisions on tax deposits not appealable?
On 31 May 2019, the Court of Appeal of Tanzania (CAT) delivered a remarkable decision in the case of Panafrican Energy Tanzania Ltd v Commissioner General (TRA), Civil Appeal No. 121 of 2018, on the competence of an appeal arising from a refusal by the Commissioner General (CG) of TRA to grant a waiver or order payment of a lesser amount of assessed tax. In general, a taxpayer who is aggrieved by a decision of the CG on tax assessment is required to object to such decision. However, the law imposes a requirement on the taxpayer, as a precondition for the CG to entertain an objection, to pay either the tax not in dispute or 1/3 of the tax assessed, whichever is greater. The law further provides a leeway to a taxpayer, where there are reasonable grounds not to make a deposit, to apply to the CG for waiver of the requirement or an order to pay a lesser amount.
This tax alert analyses the decision of CAT on whether the CG’s refusal to grant waiver is appealable. Read/Download Full Article.