CHAPTER 332
INCOME TAX ACT

[SUBSIDIARY LEGISLATION]

INDEX TO SUBSIDIARY LEGISLATION

   NOTICES

      The Income Tax (Approved Business) (Declaration) Notice

   OMITTED NOTICES

   OMITTED RULES

   ORDERS

      The Income Tax (Application of Section 36) Order

      The Income Tax (Tax Reliefs on Emoluments of Specified Volunteers) Order

   REGULATIONS

      The Income Tax (Deduction of Tax from Emoluments) Regulations

      The Income Tax (Distraint) Regulations

      The District Tax Advisory Committee Regulations

      The Income Tax Regulations

NOTICES

THE INCOME TAX (APPROVED BUSINESS) (DECLARATION) NOTICE

(Paragraph 32(1) of the Second Schedule)

[1st July, 1974]

G.Ns. Nos.
86 of 1978
125 of 1989
3 of 1992

   1. This Notice may be cited as the Income Tax (Approved Business) (Declaration) Notice.

   2. For the purposes of granting investment deductions under Part V of the Second Schedule to the Income Tax Act, every trade or business which consists in the manufacture of goods or materials or the subjection of goods or materials to any process or the generation of electricity is hereby declared to be an approved business.

OMITTED NOTICES

(Section 89)

   The following Notice is hereby omitted:

G.N. No. 216 of 1975   The Appointment of Appeals Boards Notice.

OMITTED RULES

   The following Rules are hereby omitted:

G.N. No. 217 of 1975   The Income Tax (Appeals Tribunal) Rules.

G.N. No. 218 of 1975   The Income Tax (Appeals Boards) Rules.

ORDERS

THE INCOME TAX (TAX RELIEFS ON EMOLUMENTS OF SPECIFIED VOLUNTEERS) ORDER

(Section 15(1))

G.N. No. 660 of 1986

   1. This Order may be cited as the Income Tax (Tax Reliefs on Emoluments of Specified Volunteers) Order.

   2. In this Order–

   "specified volunteer" means and includes a volunteer working in Tanzania under the institutions or technical co-operation agreements prescribed in the Schedule to this Order.

   3. The whole of the emoluments received by specified volunteers in respect of the voluntary service performed in Tanzania shall be exempt from tax.

SCHEDULE

   (a)   Voluntary Service Overseas (VSO).

   (b)   Canadian University Service Overseas (CUSO).

   (c)   Voluntary Service Abroad (VSA).

   (d)   Technical Co-operation between the Government of Cuba and the United Republic of Tanzania.

   (e)   Technical Co-operation between the Government of the People's Republic of China and the United Republic of Tanzania.

   (f)   Technical Co-operation between the Government of the Democratic Republic of Korea and the United Republic of Tanzania.

THE INCOME TAX (APPLICATION OF SECTION 36) ORDER

(Section 36(5))

G.N. No. 156 of 1974

   1. This Order may be cited as the Income Tax (Application of Section 36) Order.

   2. Every employer or class of employers specified in the Schedule hereto shall be an employer to whom section 36 of the Income Tax Act applies *.

SCHEDULE

   (1) Every employer who employs four or more employees.

   (2) Every employer who employs any number of employees in connection with his business of–

   (a)   Insurance agent;

   (b)   Travel agent;

   (c)   Forwarding and clearing agent;

   (d)   Shipping agent;

   (e)   Estate agent;

   (f)   Road transporter, whether of passenger or cargo;

   (g)   Printer.

   (3) A person who carries on the profession of a lawyer, doctor, dentist, accountant, tax consultant, architect, building contractor, civil engineer, veterinary surgeon, engineering consultant in respect of employees employed by him in connection with his profession.

REGULATIONS

THE INCOME TAX (DEDUCTION OF TAX FROM EMOLUMENTS) REGULATIONS

(Section 40(1))

[1st January, 1974]

G.N. No. 46 of 1975

1.   Citation

   These Regulations may be cited as the Income Tax (Deduction of Tax from Emoluments) Regulations.

2.   Interpretation

   In these Regulations, unless the context otherwise requires–

   "Act" means the Income Tax Act;

   "Commissioner" means the Commissioner of Income Tax appointed under section 129 of the Act and includes any person to whom the Commissioner has, by writing under his hand, delegated all or any of his functions under these Regulation;

   "emoluments" means wages salaries, allowances and other chargeable income of any employee accrued or derived from his employment with an employer;

   "employer" means an employer to whom section 36 of the Act applies;

   "income tax tables" means the tables of income tax computed by the Commissioner in accordance with the rates of tax specified in the Third Schedule to the Act;

   "monthly pay" means, in relation to any month, the emoluments and any allowance receivable by any employee during that month and includes the value of any housing provided by the employer calculated in accordance with the provisions of the Act;

   "tax deduction schedule" means the tax deduction schedule in the form provided by the Commissioner or such other document corresponding to the tax deduction schedule as may be authorised by the Commissioner in any particular case and on which such information, as the Commissioner may direct, with respect to tax is recorded.

3.   Application of section 134 to service or issue of notices

   The provisions of section 134 of the Act shall apply with respect to any notice or other document which is authorised or required to be given, served or issued by the Commissioner under these Regulations.

4.   Notification of emoluments and tax deducted

   Within thirty days of the end of every calendar year the employer shall in writing advise the employee of the total amount of the emoluments paid by the employer to the employee during that year, the total tax deduction from such emoluments and such other particulars as the Commissioner may require.

5.   End of the month procedure

   At the end of every month, the employer shall compile in such manner as the commissioner may direct a list which shall include the name of each employee in his employ from whose emoluments tax was deducted during such month together with the particulars of the amount of tax deducted as certified and such other particulars as the Commissioner may require, and the employer shall submit such particulars to the Commissioner within seven days following the date of deduction.

6.   Payment of tax by employer

   Every employer who is required by section 36 of the Act to deduct tax from emoluments paid or payable to his employee shall, within seven days from the date of deduction pay the whole of the tax deducted by him to a National Bank of Commerce branch, or a Bank of Tanzania branch or where no such bank branch exists, to any other person as the Commissioner may direct.

7.   Mode of payment

   (1) Where any person makes payment of tax–

   (a)   if such payment is made in cash, the amount remitted must reach the bank or such other person as directed by the Commissioner before the end of the normal business hours of the bank or such other person on the due date;

   (b)   if such payment is made by cheque, the cheque must be made out to the Commissioner of Income Tax, must be crossed and endorsed with the words "A/C PAYEE ONLY" and must be forwarded so as to be lodged with the bank not later than the due date to which the payment relates.

   (2) For the purposes of paragraph (1) of this regulation, payment shall be deemed not to have been received if the payment is made by cheque and such cheque, on receipt by the bank or on presentation to the bank on which it is drawn, is dishonoured for any reason whatsoever.

8.   Commissioner may require employer to submit returns

   The Commissioner may, by notice to the employer, require him to render, within the time specified in the notice, a return giving particulars of the employees employed by him during the period specified in the notice, together with such other particulars of the emoluments paid or payable to such employees, tax deducted from such emoluments, deductions remitted to the Commissioner and such other matters as in the opinion of the Commissioner are necessary or desirable to ensure compliance with the provisions of the Act and these Regulations.

9.   Inspection of employer's records

   (1) Every employer, when called upon to do so by the Commissioner, shall produce, in such language as the Commissioner may require, for inspection, at the employer's premises or at such other place as may be notified to the employer by the Commissioner–

   (a)   all wages sheets, salary vouchers and any other books, documents and records whatsoever relating to the calculation or payment of emoluments of his employees in respect of the years or months specified by the Commissioner or to the deduction of tax by reference to such emoluments; or

   (b)   such of those wages sheets, salary vouchers and other books, documents and records as may be specified by the Commissioner.

   (2) The Commissioner may, on the occasion of each inspection, prepare a certificate by reference to the information obtained from the inspection of the documents and records produced under paragraph (1) of this regulation and such certificate shall specify–

   (a)   the amount of tax which, it appears from the documents and records so produced that, the employer would have been liable to pay under section 36 of the Act for the years or months covered by the inspection had he complied with the provisions of the Act and these Regulations;

   (b)   any amount of such tax which, to the best of the Commissioner's knowledge and belief, has not been paid.

10.   Offences and penalties

   Any person who fails to comply with any requirement of or made under these Regulations shall be guilty of an offence and shall be liable on conviction to a fine not exceeding seven thousand shillings or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.

THE INCOME TAX (DISTRAINT) REGULATIONS

(Section 137)

G.N. No. 7 of 1975

1.   Citation

   These Regulations may be cited as the Income Tax (Distraint) Regulations.

2.   Interpretation

   In these Regulations unless the context otherwise requires–

   "Act" means the Income Tax Act *;

   "distrainee" means any person against whom distress may be levied under section 109 of the Act;

   "distraint agent" means any person appointed a distraint agent under regulation 3 of these Regulations;

   "distress" means a distress levied pursuant to a warrant;

   "distress debt" means the amount of any tax, interest and costs due from the distrainee and specified in the warrant or other notice;

   "distraint officer" means any public officer or other person who is authorised by the Commissioner to levy distress under a warrant;

   "goods" means movable property of the distrainee but does not include growing crops or goods which are liable to perish within ten days of attachment or any goods in respect of which it is provided by any written law that they may not be attached and sold in execution of a decree of any court of law;

   "warrant" means an order for collection of tax by distraint issued by the Commissioner under section 109(1) of the Act.

3.   Appointment of distraint agents

   (1) The Commissioner may appoint any public officer or other person as distraint agent, to generally assist distraint officers in the execution of any distress warrant in any area or areas of the United Republic:

   Provided that no person shall be appointed as a distraint agent unless the Commissioner is satisfied–

   (a)   that he is of good repute and financial standing; and

   (b)   that he is a court broker or a person who is not disqualified to be appointed a court broker; and

   (c)   that he has contracted a policy of insurance in an adequate sum against theft, damage or destruction by fire of any goods which may be placed in his custody by reason of the performance by him of his duties as a distraint agent.

   (2) The Commissioner may appoint two or more distraint agents for any area or areas.

   (3) The Commissioner may terminate the appointment of any distraint agent at any time and without assigning any reason for such termination.

4.   Provisions regulating conduct of distraint agent and distraint officer

   (1) Any person appointed as a distraint agent or officer shall undertake in writing on a prescribed form–

   (a)   that he shall take safe custody of any distrained goods obtained by him in the execution of any warrant and shall himself be liable to pay the value of any such goods which are destroyed, damaged or lost while under his custody;

   (b)   that he shall in the execution of any warrant confine himself to the instructions and limitations specified in such warrant; and

   (c)   that he shall, in the execution of any warrant, comply with the provisions of the Civil Procedure Code * relating to execution of decrees by attachment and sale, as if the distress were being levied pursuant to an attachment order made by a court:

   Provided that if any provision of the Civil Procedure Code * is inconsistent with any provisions of the Act or of these Regulations, the provisions of the Code, to the extent of the inconsistency, shall not bind a distraint agent or officer.

   (2) The Commissioner may issue such directions as he may consider necessary for regulating the general conduct of distraint agents in the performance of their functions under these Regulations and, without prejudice to the generality of the foregoing provision, any such direction may provide for–

   (a)   restrictions and limitations to which a distraint agent shall be subject in the performance of his functions; and

   (b)   such additional requirement as the Commissioner may consider necessary for the protection of goods in the custody of a distraint agent.

   (3) Every distraint agent to whom any direction given under paragraph (2) applies shall be bound by such direction.

5.   Security by distraint agent

   (1) Every distraint agent shall furnish the Commissioner with security by means of a deposit, bond or such other security as the Commissioner may determine, of such sum of money, being not less than ten thousand shillings, as the Commissioner may decide.

   (2) Where the security required by this regulation is by means of a bond, the bond shall be secured by such sureties as the Commissioner may reasonably require, and it shall be so framed that the distraint agent as well as the sureties shall each be jointly and severally be bound to the Government for the payment of such sum of money, being not less than ten thousand shillings, as the Commissioner may decide.

   (3) Any deposit, bond or other security furnished under this regulation shall, unless it has become liable to forfeiture or enforcement or the Commissioner for good cause otherwise directs, be refunded or, as the case may be, cancelled upon the termination of the appointment of the distraint agent.

   (4) If a distraint agent is convicted of an offence involving fraud, dishonesty, misconduct or negligence in connection with his functions as a distraint agent, the court by or before which he is convicted may make an order as to the forfeiture of his security or part thereof, or order him to discharge any bond furnished by him under paragraph (1) or paragraph (2) of this regulation; and in that event, the provisions of the Criminal Procedure Act * of the United Republic, in so far as they relate to forfeiture of recognisances, shall apply mutatis mutandis to the forfeiture of any security under this regulation.

6.   Execution of warrant

   (1) A warrant may be executed at any time after it has been served on the distrainee in the manner provided by regulation 7 of these Regulations.

   (2) A warrant shall be executed by attachment for such goods of the distrainee as, in the opinion of the distraint officer, are of a value which would on sale by public auction realise a sum sufficient to meet the distress debt and the costs and expenses of the distress incurred by the Commissioner including the costs and expenses of the distraint agent and the distraint officer.

7.   Service of warrant

   (1) Service of a warrant shall be effected by service by the distraint officer of a copy of the warrant on the distrainee in person or, if after using all due and reasonable diligence the distrainee cannot be found, or cannot be found without undue delay or expense, by service of a copy on any agent of the distrainee empowered to accept service or any adult member of the family of the distrainee who is residing with him.

   (2) Any person served with a copy of the warrant under this regulation shall endorse an acknowledgement of service on the original warrant stating the time, date and place of service and if such person refuses so to endorse, the distraint officer shall leave the copy of the warrant with him and shall make an endorsement on the original warrant stating that the person upon whom he served the warrant refused to sign the acknowledgement and that he left, at the time, date and place stated therein, a copy of the warrant with such person and the name and address of the person (if any) by whom the person on whom the warrant was served was identified; and thereupon the warrant shall be deemed to have been duly served.

8.   Access to distraint's premises

   (1) In executing any warrant under these regulations, no outer door of a dwelling house shall be broken open unless such dwelling house is in the occupancy of the distrainee and he refuses or in any way prevents access thereto; but when the distraint officer executing any such warrant has duly gained access to any dwelling house he may break open the door of any room in which he has reason to believe any goods of the distrainee to be.

   (2) Where a room in a dwelling house is in the occupancy of a woman who, according to her religious or local customs does not appear in public, the distraint officer shall give notice to such woman that she is at liberty to withdraw; and after allowing reasonable time for her to withdraw and giving her reasonable facility for withdrawing he may enter such room for the purpose of attaching any goods therein, using at the same time every precaution consistent with these provisions to prevent their clandestine removal.

9.   Report by distraint officer

   As soon as practicable after the attachment of any goods, the distraint officer shall–

   (a)   issue a receipt in respect thereof to the distrainee;

   (b)   take custody of the goods attached or deliver the same into the custody of a distraint agent and obtain a receipt therefor from the distraint agent; and

   (c)   forward to the Commissioner a report containing an inventory of all items attached, the value of each item as estimated by the distraint officer, the address of the premises at which the goods and chattels are kept pending sale, the name and address of the distraint agent in whose custody the goods and chattels have been placed and the arrangements, if any, made or to be made for the sale by public auction of the goods and chattels on the expiration of ten days from the date of attachment.

10.   Sale of goods attached

   On the sale by public auction of any goods attached under these Regulations the distraint officer shall cause the sale to be stopped when the sale has realised a sum equal to or exceeding the distress debt and the costs and expenses incurred by the Commissioner, the distraint agent and the distraint officer; and thereupon any unsold goods shall be restored to the distrainee and the proceeds of the sale shall be applied in the manner prescribed under section 109(4) of the Act.

11.   Return by distrainor

   Immediately after the completion of the sale by auction of goods and chattels attached under these regulations the distraint officer shall make a return to the Commissioner specifying the items which have been sold, the amounts realised by the sale and the manner in which the proceeds of the sale have been applied.

12.   Satisfaction of distress debt prior to sale

   (1) Where any distrainee has, within ten days of the attachment of his goods, paid or given security accepted by the Commissioner for the payment of the whole of the tax due from him together with the whole of the costs and expenses incurred by the Commissioner, the distraint officer and the distraint agent in executing the distress, the distraint officer shall, at the cost of the distrainee, forthwith restore the attached goods and chattels to the distrainee and return the warrant to the Commissioner who shall cancel the same.

   (2) Any sum paid by a distrainee under this regulation shall be applied by the Commissioner first in the settlement of the costs and expenses incurred in the course of the distress and as to the balance, if any, in settlement of the distress debt or such part thereof as the Commissioner shall direct.

13.   Livestock subject to distress

   Where any goods attached under these Regulations comprise or include livestock, the distraint officer shall make appropriate arrangements for the transport, safe custody, and feeding of such livestock and any costs and expenses incurred thereby shall be recoverable from the distrainee as costs and expenses incurred in the course of distress.

14.   Cost of levying distress

   (1) In addition to a claim for any other costs and expenses which may lawfully be incurred by the Commissioner, the distraint officer or distraint agent in levying any distress under these Regulations there may be claimed and recovered from the distrainee as costs–

   (a)   a distraint fee at the rates prescribed in the Schedule to these Regulations;

   (b)   distraint agent's remuneration at the rates prescribed in the Schedule to these Regulations;

   (c)   where the goods are sold by public auction, the auctioneer's commission which shall not exceed five percent of the amount realised on sale; and where an auctioneer has also rendered services as a distraint agent, he shall be entitled, in addition to such commission, to the remuneration provided for in subparagraph (b).

   (2) The rates of remuneration specified in the Schedule to these Regulations shall be deemed to include all expenses of advertisement, inventories, catalogues, insurance and reasonable charges for safeguarding any goods and chattels attached under these Regulations, and such expenses, charges or costs may be claimed separately:

   Provided that the Commissioner may, at his discretion allow any claim for expenses, charges or costs if in his opinion, having regard to all the circumstances, it is reasonable to allow such claim, and any claim so allowed by the Commissioner shall be recoverable from the distrainee as additional costs.

15.   Distraint not to interfere with good attached

   (1) Where any goods have been attached under these Regulations any private transfer or delivery of the goods or of any interest therein and any payment to the distrainee contrary to the attachment shall be void as against all claims enforceable under the attachment.

   (2) Where a distrainee or any person acting on his behalf purports to privately transfer or deliver or to attempt to privately transfer or deliver any goods attached under these Regulations or any interest in any such goods, he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding seven thousand shilling or imprisonment for a term not exceeding two years or both such fine and such imprisonment.

16.   Distraint agent deemed an officer

   For the avoidance of doubt it is hereby declared that a distraint agent or any person employed by him shall, while performing the functions of a distraint agent, be deemed to be a public officer employed in connection with the recovery of tax and shall, in the performance of such functions, have the same powers and enjoy the same protection as are conferred by the Act upon officers.

SCHEDULE
DISTRAINT FEES AND REMUNERATION

Distraint fee

   (1) Where no distress is levied and the distress debt and any costs and expenses incurred by the distraint officer are paid by the distrainee on demand or with in thirty minutes thereafter the distrainee shall be liable to pay the following distraint fee–

   (a)   where the distress debt does not exceed Shs. 1,000/-

Shs. 40/-

   (b)   where the distress debt exceeds Shs. 1,000/-

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