‘Tax evasion attracts harsh penalties’
TAXPAYERS are obliged to ensure maximum adherence to their tax obligations to avoid facing heavy penalties including criminal sanctions as well as frustrating the economic development of the country.
Retired President, Mr Ali Hassan Mwinyi, made this call in Dar es Salaam on Thursday during the Accountants’ Annual Conference held at the new Accountancy Professional Centre (APC)– Bunju organised by the National Board of Accountants and Auditors (NBAA).
Mr Mwinyi noted that non-compliance amounted to a penalty of 100 percent of the underpaid tax which will be charged for any transfer pricing adjustments made as part of a tax audit.
“Further, non-compliance with transfer pricing documentation requirement attracts a penalty which includes imprisonment for maximum of six months or fine of not less than TZS 50 million on conviction,” said Mr Mwinyi.
Achieving the maximum tax obligations is not possible without participation of accountants as well as registered tax practitioners. “With newly introduced Tax Administration Act, the scope of involvement of accountants in tax issues has been increased,” he said.
Management teams of the ministries, independent Government Departments and Agencies (MDAs) and Accounting Officers must be subjected to refresher training on some elements of the International Public Sector Accounting Standards (IPSAS) and the benefits that may have accumulated from good quality financial statements Audit firms in the country have been called upon to attend special capacity seminars and cooperate with quality reviewers to ensure the quality of audit services are enhanced and achieved as per quality review exercise.
The Governing Board Chairman of NBAA, Prof Isaya Jairo, pointed out that their profession will strive to improve services offered in an effort to support the Fifth Phase Government to hasten economic growth and development of the country.
“Thus the conference has featured 19 topics which are related to governance, ethics, auditing, taxation, finance and accounting, economics and other important issues to the professional development” noted Prof Jairo.
