Scribd Logo
Upload

Welcome to Scribd!

  • 938 views

    Tax Audit and Investigation: Presentation To 100 Medium Sized Entrepreneurs

    Uploaded by

    humphrey daimon
    The document summarizes the key differences and similarities between tax audits and investigations conducted by the Tanzania Revenue Authority (TRA). Tax audits are routine and aim to promote voluntary compliance, while investigations are triggered by suspected tax avoidance or evasion. Both seek to ensure taxpayers pay their fair share of taxes. Tax audits are mandatory and focus on risk areas, while investigations are not mandatory and focus on gathering evidence of non-compliance through various means. Taxpayers have rights and obligations to cooperate under both processes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Tax Audit and Investigation: Presentation To 100 Medium Sized Entrepreneurs

    Uploaded by

    humphrey daimon
    938 views18 pages
    The document summarizes the key differences and similarities between tax audits and investigations conducted by the Tanzania Revenue Authority (TRA). Tax audits are routine and aim to promote voluntary compliance, while investigations are triggered by suspected tax avoidance or evasion. Both seek to ensure taxpayers pay their fair share of taxes. Tax audits are mandatory and focus on risk areas, while investigations are not mandatory and focus on gathering evidence of non-compliance through various means. Taxpayers have rights and obligations to cooperate under both processes.

    Original Title

    tax audit

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes the key differences and similarities between tax audits and investigations conducted by the Tanzania Revenue Authority (TRA). Tax audits are routine and aim to promote voluntary compliance, while investigations are triggered by suspected tax avoidance or evasion. Both seek to ensure taxpayers pay their fair share of taxes. Tax audits are mandatory and focus on risk areas, while investigations are not mandatory and focus on gathering evidence of non-compliance through various means. Taxpayers have rights and obligations to cooperate under both processes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    938 views18 pages

    Tax Audit and Investigation: Presentation To 100 Medium Sized Entrepreneurs

    Uploaded by

    humphrey daimon
    The document summarizes the key differences and similarities between tax audits and investigations conducted by the Tanzania Revenue Authority (TRA). Tax audits are routine and aim to promote voluntary compliance, while investigations are triggered by suspected tax avoidance or evasion. Both seek to ensure taxpayers pay their fair share of taxes. Tax audits are mandatory and focus on risk areas, while investigations are not mandatory and focus on gathering evidence of non-compliance through various means. Taxpayers have rights and obligations to cooperate under both processes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 18

    TAX AUDIT AND INVESTIGATION

    PRESENTATION TO 100 MEDIUM SIZED ENTREPRENEURS

    Sea Cliff Hotel

    By Richard Kayombo

    Director Taxpayer Services and Education


    Tanzania Revenue Authority
    24th November, 2016

    TRA TANZANIA REVENUE AUTHORITY


    Introduction Difference between Tax Audit and
    Investigation

    Taxpayer Compliance Pyramid Similarities

    Definitions Role of Taxpayer under Tax Audit and


    investigation

    Tax audit in TRA Taxpayers Rights and obligations

    Types of Audit and Investigation Factors that trigger tax audit and
    investigation

    Tax investigation

    Criminal activities Conclusion


    TRA TANZANIA REVENUE AUTHORITY
    TAXPAYERS’ COMPLIANCE PYRAMID

    High

    Have decided not to comply use full force of the law


    Tax
    Investigation

    Don’t want to comply Deter by detection


    Tax Audit

    Try to comply but don’t Assist to comply


    always succeed
    Compliance filling return and
    face vetting

    Willing to do the Make it easy


    right thing Taxpayers
    Crea Education

    Attitude to Create pressure down Compliance


    compliance strategy

    TRA TANZANIA REVENUE AUTHORITY


    INTRODUCTION

    Tax audit in TRA


     routine activity under the self-assessment
    system.
     aimed at promoting voluntary compliance with
    tax laws and regulations.
     objective is to have just and equitable tax
    administration
     taxpayers to pay their fair share of tax.

    TRA TANZANIA REVENUE AUTHORITY


    DEFINITION OF TAX AUDIT
     an examination of taxpayer’s
     Business records,
     accounts and financial affairs
     to ascertain the taxpayer’s tax compliance
     educating or clarifying contentious and unclear tax
    issues.
     provide good learning opportunities and exchange
    of information
     closing and concluding tax affairs relating to a
    period(s) covered.

    TRA TANZANIA REVENUE AUTHORITY


    TAX INVESTIGATION

     is gathering of admissible evidence


     to recover tax undercharged
     where there is suspicion of tax avoidance and
    evasion
     to enforce criminal aspect of revenue laws

    TRA TANZANIA REVENUE AUTHORITY


    SOME OF CRIMINAL ACTIVITIES
     Deliberately underreporting or omitting
    income,
     Overstating the amount of deductions
     Keeping two sets of books
     Making false entries in books and records
     Claiming false deductions
     Hiding or transferring assets or income

    TRA
    11/25/2016 TANZANIA REVENUE AUTHORITY 7
    Types of Tax Audit and Tax Investigation

    Tax Audit
     Desk Audit

     Field Audit

     Issue Oriented Tax Audit

    Tax Investigation
     Civil tax investigation
     Criminal tax investigation

    TRA TANZANIA REVENUE AUTHORITY


    DIFFERENCE BETWEEN TAX AUDIT AND
    INVESTIGATION
    TAX AUDIT TAX INVESTIGATION
    Legal obligation Audit is mandatory No legal obligation Investigation is
    under the law, it has legal binding to not compulsory under the law
    adhere to

    Is planned and prior information is Does not require prior information on


    sent to a taxpayer what is going to be investigated

    Cannot be carried out on previously Can override audit as to accomplish


    audited financial statements, starts on certain objective.
    where the last audit ended.

    Conducted by a chartered Can be carried by both chartered and


    accountant, recognized and certified non-chartered accountant but with
    by the professional bodies investigative skills acquired through
    TRA training.
    TANZANIA REVENUE AUTHORITY
    DIFFERENCE BETWEEN TAX AUDIT
    AND INVESTIGATION
    TAX AUDIT TAX INVESTIGATION
    Examination of a taxpayer’s records, accounts Collect evidence which may satisfy three
    and financial affairs to ascertain the taxpayer’s conditions affirmed hereunder: -
    tax compliance a criminal violation; loss to Government
    revenue and intent to deny Government
    revenue
    Findings may lead to additional Lead to prosecution; or audit or
    assessment; or extended to investigation drop out

    Focus in areas of risk of non-compliance Focus on suspicion; information from


    informant or follow the money trail

    Limited time for the exercise It can be prolonged to gather all evidence

    Rely on evidence submitted by a Evidence other than from a taxpayer


    taxpayer (computer forensic, third party etc.)
    TRA TANZANIA REVENUE AUTHORITY
    SIMILARITIES
     enhance tax compliance
     apply test check by using accounting and
    auditing procedures
     guided by revenue laws
     provide time for the taxpayer to explain the
    situation
     allow taxpayer to be represented
     Consider taxpayer opinion where necessary

    TRA TANZANIA REVENUE AUTHORITY


    ROLE OF TAXPAYERS UNDER TAX
    AUDIT AND TAX INVESTIGATION
    TAX AUDIT TAX INVESTIGATION
    courteous, fair and honest and allow investigation officers to have full
    provide reasonable facilities and and free access to all places, books,
    assistance during an audit. documents, records and computers.

    respond to all queries. permit investigation officers to take


    possession of records, documents and
    computers in the custody.

    appoint tax consultants/ is obliged to render a translation in


    representatives and notify Kiswahili or English of the said records
    or documents

    not to transact any business with audit Co-operate with investigation officers
    officer including payment of tax and attend all interviews/discussions
    TRA TANZANIA REVENUE
    as will AUTHORITY
    be notified by the investigation
    TAXPAYERS RIGHTS AND
    OBLIGATIONS UNDER TAX
    Tax Audit Tax Investigation
    Impartial treatment Right to know the consequences for
    failure to cooperate
    not to suspend business during an
    audit.
    Privacy and confidentiality to identify investigation officers;

    Presumption of Honesty to appoint an approved tax consultant/


    representative or a team of advisers
    Objection of tax assessment acting individually or collectively.

    Tax relief and exemption under tax law to bring along interpreter(s) during the
    interview/discussion session if not
    conversant in English or Kiswahili

    TRA TANZANIA REVENUE AUTHORITY


    TAXPAYERS OBLIGATIONS UNDER TAX
    AUDIT AND INVESTIGATION

     Registration
     Filling of return
     Accuracy of Returns
     Timely payment of taxes
     Issuance and demand of fiscal receipts/tax
    invoices
     Cooperation with TRA

    TRA TANZANIA REVENUE AUTHORITY


    CONCLUSION

     Both are geared towards enhancing tax


    compliance
     All are to follow legal procedures where both
    parties a taxpayer and tax authority have
    rights and obligation on tax decisions.

    TRA TANZANIA REVENUE AUTHORITY


    Contacts
    TRA Call Centre
    0800 750075
    0800 780078
    huduma@tra.go.tz
    services@tra.go.tz

    Tanzania Revenue Authority


    P.O. Box 11491 Dar - es -Salaam.
    Website: www.tra.go.tz
    Email: info@tra.go.tz

    TRA TANZANIA REVENUE AUTHORITY 16


    Contacts cont…
    To unearth tax evaders Call:
    +255 22 2137638
    +255 784 210209

    For any misconduct by TRA officials:


    call: +255 689 122 515
    SMS: +255 689 122 516

    TRA TANZANIA REVENUE AUTHORITY


    Thank you for your attention

    Together we Build our Nation

    TRA TANZANIA REVENUE AUTHORITY

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy