Background

The Tax Administration (General) (Amendment) Regulations were published on 28 February 2020 as Government Notice No. 169 of 2020. They were made under sections 28, 30, 92, 94 and 98 of the Tax Administration Act [Cap 438 R.E. 2019].

Agency Notice

Section 67(1) of the Tax Administration Act gives the Commissioner General of the Tanzania Revenue Authority, where a taxpayer fails to pay tax on time, powers to issue an Agency Notice to a third party to whom a taxpayer owes money for the third party to pay the money owed to the taxpayer to the Commissioner General. Section 67 is supplemented by Regulation 91 of the Tax Administration (General) Regulations, which provides:

91.-(1) In executing powers under section 67 of the Act, the Commissioner General shall serve an Agency Notice to the third-party debtor who owes money to the taxpayer.

Before GN No. 169 of 2020, the Commissioner General’s powers under section  67(1) and Regulation 91 were not expressly restricted in any way. That restriction has now come through the GN, which amended the Regulations by adding immediately after regulation 91(2) the following subregulation:

“(3) Sub regulations (1) shall not apply to bank accounts held in banks in the United Republic by mining companies in which the Government of the United Republic has shares and has concluded an agreement with the company unless there is a court decree issued to the Commissioner General after final completion of judicial proceedings.”

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