The office of the tax ombudsman set to expedite complaints resolution

By Salome Gondwe

The Office of tax ombudsman was established in 2019 under the Tax Administration Act, No.10 of 2015. Initially, the ombudsman was tasked with receiving and addressing complaints from taxpayers against the Commissioner General, Tanzania Revenue Authority (TRA) and its staff.

This position changed in 2021 and now any individual and not just taxpayers,can present a complaint to the tax ombudsman

The regulations providing for Complaints Procedures and the other one providing for appointment of staff and conduct of the function of the tax ombudsman were established in April 2022, paving way for the appointment of the tax ombudsman.

Once appointed by the minister of Finance, the ombudsman will be required to create awareness and training to taxpayers and the public on the roles and responsibilities of the office as well as the procedure of filing complaints.

The ombudsman must always remain impartial whilst handling complaints and discharge duties independently without undue influence from individuals, government, private or public institutions.

A complaint against TRA personnel to the Ombudsman may be done orally or in writing. Complaints may vary from noncompliance to procedures in administration of tax laws;delay in release of documents or assets seized during investigation of tax affairs; delay in responding to complaint submitted by a taxpayer/any person or non-response of letters submitted by a taxpayer/any person to the TRA.

A complaint should be lodged within ninety days of its occurrence. If a complaint is filed beyond stipulated timeline, the ombudsman may still accept it,if satisfied that there were reasonable grounds for the delay.

Upon receipt and review of a complaint, the ombudsman will provide right of audience to both the complainant and the respondent.

The ombudsman has power to call any person to appear before him and may require the TRA staff or any person to produce certified documents related to the complaint.

The ombudsman will then arbitrate the complaint amicably through mediation, conciliation, or any other available mechanism. During arbitration, the ombudsman may uphold a complaint wholly or in part, decline to consider the complaint or dismiss it.

The ombudsman is required to determine a complaint within 30 days from receipt. Following determination of a complaint, the ombudsman will proceed to submit the findings to the minister for his recommendation within 14 days.

The minister will thereafter issue directives and recommendations to the TRA, and any such directives or recommendations will be communicated to the complainant by the ombudsman.

It is important to note that the ombudsman, whilst discharging his duties, will not interfere with the tax dispute resolution processes undertaken by the Commissioner General and personnel.

These processes referred here relate to the objection stages/review arising from post clearance audit and appeal.

In my view, the establishment of the Office of Tax Ombudsman is good news to taxpayers and every person who interacts with the TRA.

Although the ombudsman has no mandate to review and determine matters under objection process or appeal, he will help taxpayers understand the tax dispute resolution process and enhance the Authority’s efficiency especially when handling taxpayer’s seized property.

It is also likely that TRA will improve its customer service and administration of tax laws to resolve any complaints raised by taxpayers and other individuals.

Further,it is also expected that TRA will promptly comply with the Minister of Finance’s directives and recommendations following the ombudsman’s findings, further enhancing the tax dispute resolution process.

This will lead to a desired outcome for taxpayers where disputes and are resolved and concluded in a fair, transparent and timely process. As a bonus, the Tax Ombudsman will also complement TRA’s efforts on tax compliance, tariffs and applicable laws education, which is currently done by TRA’s Taxpayer Education Department.

Overall, the Tax Ombudsman office will inspire taxpayers and public confidence in the tax laws administration and dispute resolution process, leading to fewer complaints, increased tax compliance and enhanced relations between TRA and taxpayers. On the other hand, taxpayers will have an assurance of an impartial arbiter they can rely on to handle their complaints and other issues efficiently and timely.

Salome Gondwe([email protected]), TaxManager at KPMG in Tanzania. The views expressed here are the author’s and do not necessarily represent the views and opinions of KPMG.