TRA PUBLIC NOTICE ON USE OF INACTIVE AND NON-BUSINESS TAXPAYER IDENTIFICATION NUMBERS FOR IMPORTATION AND EXPORTATION DECLARATIONS INTENDED FOR BUSINESS PURPOSES

Published by KEMILEMBE D. BARONGO

The Tax Revenue Authority has launched an astute TIN monitoring exercise in support of the doctrine of voluntary tax compliance enshrined in section 5(1) (e) of the Tanzania Revenue Authority Act Cap 399 R.E. 2019. The exercise involves strict scrutiny of importations by taxpayers with Inactive Tax Identification Numbers (iTIN) and non-business Tax Identification numbers (nTIN) through the Tanzania Customs Integrated System effective as of 1st September 2020 used unlawfully for importing and/or exporting goods for business purposes and identification all importers who don’t file tax returns of their imports.

Inactive Tax Identification Numbers (iTIN) vs non-business Tax Identification numbers (nTIN)

iTIN and nTIN are provided under section 22(1) of the Tax Administration Act R.E. 2019 for various reasons including acquisition of driving licenses and importation of vehicles for private use. iTIN (Inactive TIN) are taxpayer numbers issued to persons who appear not to have made any transactions during the year of income and are required to honor their tax obligations but have failed to do so, while nTIN (non-business TIN) are issued to persons for purposes other than business or investment.

What we need to know.

Both nTIN and iTIN should be or are taxable as envisaged by section 91 of the Income Tax Act R.E.2019 because all importations including private vehicle importation are acquired through taxable income sources.

The Tax Revenue Authority has therefore urged all taxpayers with iTIN and nTIN to take the necessary steps to ensure that their TINs are used lawfully or deactivated if they are no longer in use. Failure to do so will compel the commissioner General of Tax to issue estimated assessments to the said holders of iTIN or nTIN which they will be bound to astutely pay or object to in accordance with section 51 of the Tax Administration Act R.E. 2019.