THE Court of Appeal made a good start in handling tax appeal cases having by disposed two of them worth over 20bn/- involving TSCAN Limited and Tanzania International Container Terminal Services (TICTS) out of the four cases scheduled for determination.
It was a win-win situation between the two companies and the Commissioner General of the Tanzania Revenue Authority (TRA) after a legal panel comprising Justices Nathalia Kimaro, Katherine Oriyo and Augustine Mwarija granted some requests made by the two parties to the cases.
The case, involving TSCAN and relating to over 14bn/- tax dispute lodged by the TRA against the company, was marked ‘withdrawn’ following a request by their advocate, Mr Felix Haule, that the same should be disposed of in that manner after noting some legal defects on the proceedings.
Another case involving TICTS, which lodged a matter against TRA to challenge tax assessment of over 6.5bn/- was also marked ‘withdrawn’ after the parties informed the court that they have reached a resolution to settle the matter “through an amicable approach’’.
The remaining two cases slated for determination, involving Quality Group Limited and Pembe Flour Mills Limited, were adjourned due to some legal technicalities.
The case under which Quality Group opposes tax assessment of over 1.3bn/-, was not heard because the company was not represented.
There were reports given that the counsel who had been served to represent the company, Lloyd Nchunga, could not receive the summonses because he had withdrawn from representing the company to avoid conflict of interests relating to his leadership in Premier League side Young Africans Sports Club, popularly known as YANGA.
Mr Nchunga was club’s chairman before his post was taken over by the current holder, Mr Yusuf Manji, who is the Chief Executive Officer of Quality Group. The justices, however, adjourned the matter to Friday and directed the parties to be dully served with summons.
The outcome of the case involving Pembe Flour Mills Limited will be known on a date to be set later after the justices heard a preliminary point regarding the competence of the appeal challenging TRA’s assessment of tax amounting to 313m/-.
In the case, Mr Haule, for TRA, requested the court to “strike out” the appeal on grounds that the decree of the Tax Revenue Appeals Tribunal attached to the proceedings was signed by the Chairperson alone instead of all the members, as required under the Rules.
However, Advocate Michael Ngalo, for the company, requested the panel to overrule such ground of objection for lacking merits.
He submitted that there was no requirement under the rules that the decree should be signed by all members who heard the matter by the Tribunal.
The advocate told the court further that the non-signing of the decree has not prejudiced anyhow the TRA as in the court of proceedings he had attached a copy of the judgment of the Tribunal showing the subject matter in dispute, which has been signed by the Chairman and all members involved.
Hearing of other 24 remaining cases continues today. Other tax appeals cases scheduled for determination includes North Mara Gold Mines Limited, Bulyanhulu Gold Mines Limited, Geita Gold Mining Limited, Intestate Mining and Minerals Tanzania Limited and Mabangu Mining Limited.
Others are National Microfinance Bank PLC, KCB Bank Tanzania Limited, Tanzania Breweries Limited (TBL), BP Tanzania Limited, Pan African Energy Tanzania Limited, Tanzania Ports Authority (TPA) and Kilombelo sugar Companies.
Other companies are Tanga Cement Company Limited, SBC Tanzania Limited, Tanzania Leaf Tabocco Company, G.S Contractors Limited, J.S.C. Atomredmetzoloto (ARMZ), Ms Uturn Grocery Store, South Com. East Africa Limited and Orxy Company Limited.
Hearing of the cases comes few days after President John Magufuli directed the Judiciary to fast track the disposal of 442 tax cases that have been pending in courts since 2010, denying the government earnings amounting to 1 trillion/-.
The president promised the Judiciary to 250bn/-, being 25 per cent of such amount to boost its development budgets and enhance capacity in determination of rights of parties to litigation within the shortest possible time.
Source:Daily News:Appeal Court disposes two cases worth 20bn/-
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