TOP 100 MID-SIZED COMPANIES SURVEY: KPMG: Why fear tax authorities?

Dar es Salaam. Convincing small and medium enterprises (SMEs) to take part in the Top 100 Survey is difficult because of the misconception that they would be targeted by the Tanzania Revenue Authority (TRA).

The Top 100 Mid-Sized Companies Survey which started seven years ago, is a brainchild of Mwananchi Communications Limited (MCL) through The Citizen brand and a top audit, tax and advisory firm KPMG.

According to Mr Ketan Shah, KPMG advisory and markets partner, some companies have been hesitant to participate in the Top 100 Survey thinking that disclosing their financial records, which is a requirement in the survey, would make them vulnerable to tax authorities. He said it was not correct to assume that TRA will demand more tax only because a company is growing.

Elaborating, he said, the taxman considers a broad range of factors including business turnover, profitability and operation costs.

Also on the list are return on assets, creation of employment and compliance to business regulations including payment of government taxes.

Mr Shah said the government was not there to milk taxpayers, but stressed that it was the duty of every eligible person or firm to pay tax. He said KPMG was looking for innovative ways to convince more SMEs to participate in the Top 100 Survey. NMB Bank is the main sponsor of the eighth episode of the survey, which was officially launched on July 10.

The other sponsors include Dar es Salaam-based Hyatt Regency Hotel, Dar es Salaam Stock Exchange (DSE) and Azam TV.

Why is it important for SMEs participate in Top 100?

“The survey provides an opportunity for local mid-sized companies to show what they do and capitalise on the benefits of the survey to grow their businesses. It widens the window of opportunities for participants including a chance to meet with bankers a process that facilitates access to loans.”

He said participation in the survey also facilitates networking, sharing of experience and information about markets.

Why sponsoring Top 100?

Mr Shah is confident that raising the profile of SMEs is the best approach to ensuring that they play an important role in fostering growth of the country’s economy.

He said KPMG wants to empower Tanzanians with knowledge that will give them confidence to grow.

This in turn contributes to creation of employment opportunities and improving the living standards of millions of Tanzanians.

“We will do all in our power to ensure that Top 100 Survey is sustainable as it plays a pivotal role in promoting productivity and level playing field among SMEs,” Mr Shah said.

The winners of the eighth edition of the Tanzania Top 100 Mid-Sized Companies Survey are set to be announced this week during a grand gala dinner at Hyatt Regency Hotel in Dar es Salaam.

The Dar es Salaam-based BQ Contractors was the winner of the inaugural event of the survey in 2011.

In 2012 and 2013, the Mwanza-based Kipipa Millers won the accolade.

In 2014, the mantle went to the Arusha-based Helvetic Solar Contractors followed by Softnet Technologies Limited in 2015.

Flightlink Ltd and Dar Ceremica Centre 2001 emerged overall winners in 2016 and 2017 respectively.

The shortlisting process includes quantitative methods, face-to-face interviews as well as self-completion of general and financial questionnaires.

Participating companies are expected to have turnovers that range between Sh1 billion and 20 billion.

They are also expected to disclose their audited financial records for three previous years and should be companies that are yet to be listed on the stock market.

Commercial banks, firms dealing in insurance, savings and credit cooperative societies, law firms, accounting and auditing are not eligible to the survey.