Michael John Marere (ATIArB) LLB, LLM, PGDLP, PGCCA, PGDED, COP- I, PhD (Cand.)’s Post

🌟 Understanding the Tax Treatment of Impaired Loans and Bad Debts Claims in Tanzania 🌟 As tax administration continues to evolve in Tanzania, one pressing concern is how it treat impaired loans and bad debts. Today, I’d like to share some insights that shed light on this crucial topic from both legal and practical perspectives. 🇹🇿💼 🔍 Key Legal Frameworks: 1. National Bank of Commerce vs. Commissioner General: This landmark case established that financial institutions must adhere to specific provisions of the Income Tax Act (ITA), 2004, to qualify for deductions on impaired loans. 2. Section 25(5) & 39(d) of ITA, 2004: These sections clearly define when a debt can be classified as bad, aligning with the standards set forth by the Bank of Tanzania (BOT), and outline necessary conditions for writing off bad debts. 3. Section 18(b) of ITA, 2004: This section highlights the mutual responsibilities of taxpayers and the tax authority, empowering the latter to review returns and finalize assessments regarding the allowance or disallowance of deductions. 💡 Practical Insights: - The BOT standards are not a stand-alone requirement. - The evidence presented to the BOT in seeking approval of impaired loan losses and bad debt claims constitutes the evidence to be presented to TRA for it to determine as to whether to allow or disallow the deduction. #Tanzania #TaxLaw #Finance #BadDebts #ImpairedLoans #Compliance #Banking #TaxAdministration #Leadership #Insights

🌟 Thrilled to share some valuable insights with the members of the Tax Revenue Appeals Board and Tribunal of Zanzibar! 🌟 Engaging with such a dynamic group is not just an opportunity - it's a privilege. The ever-evolving landscape of taxation in our jurisdiction demands our commitment to continuous learning and adaptation. I am truly honored to contribute to these discussions as we navigate the complexities of tax law. Together, let's embrace the challenge of staying ahead of the curve! 💼💡 #Taxation #ContinuousLearning #Zanzibar #ProfessionalDevelopment #Collaboration

💼 Important Legal Update on VAT Input Claims in Tanzania 🇹🇿 The Court of Appeal of Tanzania (CAT) has upheld the decision of Tax Revenue Appeals Tribunal (TRAT), highlighting a pivotal moment in VAT input claims. The CAT ruled that the Taxpayer failed to establish that their goods were used or intended for business purposes, in strict alignment with section 16(1)(b) of the VAT Act, 1997. This decision serves as a crucial reminder of the stringent requirements set forth in section 68 of the Value Added Tax Act, 2014. It is imperative for taxpayers to clearly demonstrate that their inputs are directly linked to taxable business activities in order to qualify for deductions. Let’s stay informed and ensure our practices align with the current legal regime. #VAT #TaxLaw #Tanzania #LegalUpdate #BusinessCompliance #ValueAddedTax

🌍 Excited to share my insights on international taxation and global reforms as I prepare to present my paper at the 9th ATAF ATRN Annual Congress today! 📄 Paper Title: Bridging the Evidence Gap on Adoption of Amount A in Developing Countries: The Case of Tanzania 🔑 Key Insights: - Challenges faced by developing countries in adopting international tax reforms - Case study analysis of Tanzania’s unique economic landscape - Policy recommendations for ensuring equitable tax systems Looking forward to engaging discussions and learning from fellow experts in the field! #InternationalTaxation #ATAFATRN2024 #GlobalReforms #ATAF #Tanzania #TaxPolicy #EconomicDevelopment

🔥 Exciting news for financial services consumers and providers in Tanzania📣 🚀 The Bank of Tanzania (BOT) has just released the long-awaited Guidelines on Fees and Charges for Banks and Financial Institutions. This is a crucial step towards protecting consumers in the financial industry. Here are the key highlights of these groundbreaking Guidelines: 1️⃣ Governance and Internal Controls: The BOT has set out strict requirements for banks and financial institutions to establish robust governance and internal control systems. 2️⃣ Policies for Fees and Charges: Gone are the days of hidden fees and surprise charges! The BOT now mandates that banks and financial institutions must establish clear policies regarding their fees and charges structure. 3️⃣ Disclosure Requirements: Transparency is key! With these Guidelines, banks and financial institutions are now obligated to provide transparent and easily understandable information about their fees and charges. No more confusion or hidden motives! 4️⃣ Sanctions and Penalties: To ensure compliance and accountability, the BOT has implemented a system of sanctions and penalties. Any misconduct or non-compliance by banks and financial institutions will be dealt with effectively. 💼 Let's applaud the BOT for prioritizing consumer protection and transparency in the financial services industry. Together, we can build a stronger and trustworthy financial ecosystem in Tanzania. Join the conversation and share your thoughts on these guidelines! 🗣️💪 #ConsumerProtection #FinancialServices #BankOfTanzania #Transparency

🌍 Introduction of the Industrial Development Levy (IDL) in Tanzania🎉 The Finance Act, 2024 has recently made some groundbreaking amendments to the Imports Control Act (CAP 276), introducing the Industrial Development Levy (IDL), a move aimed at promoting industrial growth and development in Tanzania. 💪🏽💼 Under section 18A, read together with the schedule to the Imports Control Act , the IDL has been implemented, targeting a specific class of goods. 🛠️📦 Here are the key goods subject to the Industrial Development Levy: 1️⃣ Wire rods: 🛠️🔌 2️⃣ Beer, wine, and energy drinks: 🍻🍷💡 3️⃣ Non-alcoholic beer: 🍺🌿 4️⃣ Other organic surface-active agents: ♻️🧹 5️⃣ Cement clinkers and Portland Cement: 🚧🧱 #TanzaniaTrade #EconomicGrowth #IndustrialDevelopmentLevy #LocalProduction #SustainableFuture