On 19 October 2026, Commissioner General Alphayo Mwenda addressed the business community during a stakeholder forum in Dar es Salaam, delivering a clear message that TRA will not resort to closing businesses over tax disputes. The statement comes amid concerns from the private sector about aggressive enforcement actions, including padlocking premises for alleged tax arrears. CG Mwenda clarified that TRA’s enforcement policy prioritizes dialogue, negotiation, and structured payment plans before any coercive measures. He referenced the Tax Administration Act, Cap 438, which mandates that taxpayers be given reasonable opportunity to settle liabilities or object to assessments through the Objections and Appeals mechanism. The CG announced the establishment of a Taxpayer Ombudsman office within TRA to handle complaints about disproportionate enforcement. He also highlighted recent amendments to the Income Tax Act that allow for installment agreements for taxpayers facing temporary cash flow difficulties, subject to collateral or guarantees.
Key Takeaways
- Enforcement as Last Resort: TRA will exhaust all administrative remedies—including demand notices, payment plans, and alternative dispute resolution—before considering physical closure of business premises.
- Payment Plan Framework: Taxpayers can apply for installment arrangements of up to 24 months for outstanding liabilities, provided they submit audited financial statements demonstrating inability to pay in full.
- Ombudsman for Grievance Redress: The new Taxpayer Ombudsman will independently review enforcement decisions, ensuring proportionality and adherence to procedural fairness, with powers to recommend remedial action.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement