Legal Alert | Overview of the Tax Administration (Remission of Interest and Penalties) Regulations, 2020

On 8 May 2020, the Minister of Finance issued the Tax Administration (Remission of Interest and Penalties) Regulations, 2020 which are aimed to govern the remission of interest and penalties regime under section 70 of the Tax Administration Act, 2015. The regulations provide eligibility requirements for remission of interest and penalties, determination and criteria for remission and the application procedures.

We note that before the regulations were issued, the Commissioner General of the TRA could grant remission of interest and penalties on all taxes where a taxpayer was able to justify a good cause for such remission; however, the new regulations provide that remission of interest and penalties can only be granted with respect to eligible taxes.

Furthermore, financial hardship can no longer be used as a basis for determining qualification for remission of interest and penalties unless the financial hardship: (a) existed when the tax liability (subject of the application) was due and payable under a tax law; (b) was the main reason the applicant failed to pay tax on the due date; (c) will persist until an unforeseeable time in future (a period not less than one year from the time of lodging an application); and (d) the applicant notified the Commissioner General of the situation at the time when the tax was payable.

We have put together a comprehensive analysis of the new regulations. Click here to read the full article.


Should you have any questions regarding this legal alert, please do not hesitate to contact Shemane AminGeofrey Dimoso or Juliana Mosha.

Shemane Amin
Partner
ALN Tanzania | A&K Tanzania
sda@tz.africalegalnetwork.com
Geofrey Dimoso
Partner
ALN Tanzania| A&K Tanzania
gd@tz.africalegalnetwork.com
Juliana Mosha
Associate
ALN Tanzania| A&K Tanzania
jm@tz.africalegalnetwork.com

 


The content of this alert is intended to be of general use only and should not be relied upon without seeking specific legal advice on any matter.