Historical Background Of Tanzania Revenue Authority (TRA)
ACKNOWLEGEMENT
The success and final outcome of
this report required a lot of guidance and assistance from many people and I am
extremely privileged to have got this all along the completion of my report.
All I have done is only due to such supervision and assistance and I would not
forget to thank them. My grateful thank should go to the Regional managerat
Tanzania Revenue Authority, Ilala Region for including and allocating me among
the few students who were given the chance to undertake our field work training
at TRA Buguruni Tax Service Center (Ilala) and giving us all support and
guidance which made me complete the report duty. I am extremely thankful to Mr.IssaSheiza
(In charge of Non Tax Revenue Unit) for providing such a nice support and
guidance,although he had busy schedule managing the organization affairs. I
would also like to extend my sincere esteems to all staffs at TRA Buguruni Tax
Service Center (Ilala) for their timely support. Special thanks to my mother Mrs.
Maria Alex Kombaand my beloved father Mr. Abel Mhagamaand all my relatives,
friends, and those who in one way or another shared their support either
morally, financially and physically. Thank you. Above all, Thanks to the Great Almighty.
The author of knowledge and wisdom for his countless love.
EXECUTIVE SUMMARY
Practical training program was
designed purposely to transform the student knowledge generated from their
relevant courses studied in the class to the daily operations of different
institutions in the field of their studies. This is an attempt to know how the
theories can be applied to practical situation. This is for the intention of
making the student fit in the market by being familiar with what is needed in the
Labour market and its relevance with what they are studying. As a student of Diploma
in Business Administration, it is part of study for everyone to undergo field
work training at some good institute or organization. So for this purpose, I
got the opportunity of undertaking field work training at Tanzania Revenue Authority
at Buguruni Tax Service Centre. This report is the
product of six weeks period at TRA Buguruni as a student trainee. This field
report will explain in detail on much of the work that has done during the
field work training as well as the acquired knowledge and competencies. The
report covers the whole period of my practical training exploring things which
were prevailing at my place of attachments in relation to the aim of the
program. This field reportconsists of three(3) chapters and every chapter tends
to have its component shortlisted in the table of content.Chapter one is all
about nature of organization(TRA) in general, its background, organization
structure, and number of employees, customers, level of technology, activities
and strategic direction.
Second chapter explain different
specific activities performed within area of placement, working environment, level
of interest and degree of meeting demand in task performed, problem faced in
pursuing the task with respective solutions and recommendation, expectation
before going to the training, new things learned, gaps between theory and practice,
employment prospects and relevance of the attachment. The last chapter is about
conclusion and recommendation concerning improving the gap between teaching
theory and the placement process.
DECLARATION
I DICKSON
ABEL MHAGAMA, declare that, except where references are made, this report is a
result of my own effort and initiative which have been planned, organized and
presented without plagiarism and it has never been submitted in any other institution
for an award or others.
--------------------------------
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Student Signature Date
LIST OF ABBREVIATIONS
CP4-Fourth Corporate Plan
CP5- Firth Corporate Plan
DRD-Domestic Revenue collection
GDP- Gross Domestic Product
ISO- International Organization for
Standardization
ITAX-Integrated Tax System
PT-Practical Training
TIN-Taxpayer Identification Number
TRA-Tanzania Revenue Authority
VAT-Value Added Tax
TABLE OF CONTENTS
1.0: Nature of the Organization
1.1: Historical Background Of Tanzania Revenue Authority
(TRA)
1.2: Major Tra Product/ Services
2.1: Placement in the
Organization
2.2: Task and Duties
Performed
2.2.1 Physical survey analysis
2.2.2 Registry activity (Filling tax position)
2.2.4 Checking of the amount paid by taxpayer and its debit
number
2.2.5 Checking of VAT return of the taxpayers
2.4 Level of Interest in Task Performed
2.5measuring Demand of the Assigned Duties
2.6 Problems Face in Executing Tasks
2.6.2 Education to the taxpayers
2.6.3 Inadequate of office furniture
2.7 Solution and Recommendation to The Problem
2.8 Expectation Before Going To the Training.
2.10 In Teaching between Theory And Practice Gaps
3.1: Recommendation Concerning Improving Gap In Teaching.
3.2: Recommendation
Concerning Handling Gaps In Placement Process.
CHAPTER
ONE
1.0:
Nature of the Organization
Over
the last 17 years Tanzania Revenue Authority (TRA) has matured from tax
administration that provide tax type services for revenue collection to an
efficient organization that delivers one stop shop service for all type of
taxes which has steered service delivered to the level of ISO 900:2008
certificate for the organization. Fourth Corporate Plan is attributed to
changes in TRA’S operating environment which include the level of
sophistication of shareholders, the desire to offer services to meet or exceed
customer expectations and the government’s need to be more self-reliant by
increasing domestic revenue mobilization to eventual reduction in aid
dependency in the government budget. TRA implementing the Fourth Corporate Plan
whose vision is to increase revenue to GDP ratio to 19.9% by 2018. The Plan has
been developed using four balanced score card perspective of Financial,
Customer, Internal processes and Learning and Innovation whereby strategic
objective have been aligned under each perspective with cause and effect
linkages. The perspective and their respective strategic objectives have been
grouped into the Strategic Themes of Convenience, Compliance and Continual
improvement to shape the TRA strategic thinking for next five years.
1.1: Historical Background Of Tanzania Revenue
Authority (TRA)
The Tanzania Revenue
Authority (TRA) was established by act of parliament NO.1995 and started its
operation on 1/07/1996. In caring out its statutory function, TRA is regulated
by law and it is responsible for administering impartially various taxes of the
Central Government. The authority which administers a number of taxes is under
the general supervision of Board of Director.
During 1996/1997, the
Government fiscal policy was set to enhance revenue collection and improve
expenditure control measure aiming at restraining the fiscal deficit. On the
revenue side the measures that were implemented include the strengthening of
tax administration through establishment of the TRA. The TRA is a government
agency of Tanzania charged with the responsibility of managing the assessment,
collection and accounting for all central Government revenue. It’s
semi-autonomous body that operates in conjunction with the Ministry of Finance
and Economic Affairs under the general supervision of Ministry of Finance.
Offices of TRA are located in throughout the regions of Tanzania with its
headquarters in soloing drive at Dar es Salaam hence also being present in
Zanzibar. The motto of TRA is “together we build our nation”.
1.2:
Major Tra Product/ Services
TRA as semi-autonomous agency of
government, it offers different kind of services to the taxpayers. These
includeRegistration, Tax assessment, Tax audit, Permit and license, Tax
education, Provision of statistical data and training.
. Registration
TRA offers services to
the taxpayer in online registration for TIN, Registration for VAT, Registration
for payment, motor vehicle registration and in register artist product. TRA
register customers for ease of collect tax in difference areas in the country.
.
TAX EDUCATION
In
TRA there is department dealing with education programmed with the objective of
enhancing the level of tax awareness to the taxpayers.
.TAX
ASSESSMENT
TRA
make assessment of tax as determined in each respective tax law.TRA has issued
calendar to remind taxpayers/ stakeholders on the due date to pay tax return (tax return usually paid on March,
June, September and December). This calendar helps taxpayers in planning their
tax affairs.
.PERMIT
AND LICENCES
TRA,
permit operation of business in the country by provide the licenses of the
business to the customers/clients
1.3:
Organization Structure.
1.4:
Number of Employees
TRA has got the total
number of 3600+ staffs throughout Tanzania. Each region in Tanzania has got a
TRA branch as top enhance effective de-centralized revenue collection with
employees. For the BUGURUNI DISTRICT were I pursued my PT, According to Mr.PETER
the number of employees is FIVE (5).
1.5:
Level of Technology
At TRA the level of
technology is more advanced compare to the other governmental authority.TRA
shall serve taxpayers according to the following standard.
Registration of
taxpayers
TIN
TIN registration shall
be provided after accomplishment of all requirements whereby it require for the
new client to have National ID or number in order to register to the system and
TIN can be provided on the spot after finish all steps or client can be sent
TIN through message it depend on the system.
VAT
VAT registration shall be provided after fulfillment
of all requirements whereby in Region, within one working day from the date of
receipt of application also in District within ten working days from the date
of receipt of application.
Motor vehicle registration
Registration shall be done within two working days
from the date of receipt of the application after fulfilling all requirements
1.6:
Tra Customers
TRA interact with
different people and institution that have interest and stake in the operation
of the Authority.
TRA customers are those
registered and non-registered taxpayers who need service from TRA.
.Employees and Employers
.Company and Partnership
1.7:
Strategic Direction
According to TRA Fourth Corporate Plan, in
implementation of fourth Corporate Plan (2013/2014, 2017/2018) which has to be
convenience, compliance, and continual improvement TRA aims at strengthening
its operational efficiency and boost customer services in order to improve
revenue collection. To achieve this objective, TRA is guided by:-(TRA, 2013)
VISION The vision for the fourth corporate plan is to be ‘’To increase
revenue to GDP ratio to 19.9% by 2018’’ The Authority will achieve this
through improvement effort which will focus on training, technology
enhancement, customer services and enforcement programs. MISSION. The Mission
statement summarizes TRA’S role and how customer’s expectation will be met.
TRA’S mission statement is ‘’To make it easy to pay tax and live better’’.
CHAPTER
TWO
2.0: Activities Performed
2.1: Placement in the Organization
The PT took place at
TRA BUGURUNI which is particularly containing only one department known as
DOMESTIC REVENUE DEPARTMENT(DRD). Various tasks and duties were performed in
this line as part of attachment training.
2.2:
Task and Duties Performed
During my practical
training at TRA, my internal supervisor assigned different duties and task to
perform. Those task and duties are
2.2.1
Physical survey analysis
I pursued to visit
different place during my PT whereby I visited Block A,B,C&D for the
purpose of analyzing different information for taxpayers like their amount
being assessed for the year of income and sales per day in order to determine
on whether the coming tax liability will increase or not and also to determine
on whether the taxpayers has reach the stage of using EFD machine for those
they do not have.
2.2.2
Registry activity (Filling tax position)
I achieved to prepare
tax position report for the different taxpayers for the aim of knowing the
taxpayer which are active and dormant by looking on their payment of tax
liability and also to know those who have close their business due to different
reasons.
2.2.3
Assessment of taxpayer
The taxpayer has to be
assessed for the purpose of ensuring that proper and require tax liability is
paid.The recommendation here is to check the taxpayer identification number,
two passport, application form and the required attachment and also form of interview
where by tax payer will be asked different questions like amount spent per day
at home for, tax liability increase due to high money circulation of taxpayers.
2.2.4
Checking of the amount paid by taxpayer and its debit number
All the taxpayers are required
to pay tax liability assessed for the year of income and it’s usually paid in
four installments(on March June, September, December). For the third
installment I issued control number for the payment of tax liability by
checking the amount required to be paid by the taxpayers and its debit number.
2.2.5
Checking of VAT return of the taxpayers
The status of the
taxpayer is checked whether the taxpayer is active or dormant and for how long,
this goes together with checking on when was the last for the return to be
made. This task is done by using ITAX
2.3
Work Environment
The working environment
at TRA is inspiring, motivating and easy to adopt. Also the overall experience
I receive from TRA is that work is done as team work whereby absence of one
member it leads to deals to a gap in per suing the task (physical survey analysis
was done as a team work) and few of works are done individually like TIN
registration and open of taxpayer files. Also for the problem I faced during
performing the task I had to ask for the help from the staff members apart from
the absence of staff members.
2.4
Level of Interest in Task Performed
Duties performed were
interesting and enjoyable whereby they provided me with a chance to know the
next side of practical after becoming competent to some accounting theories.
All task performed during my PT demand both practical and theoretical knowledge
acquired on class or skill learnt in the field(filling of tax position report
and TIN registration)
The accumulation of knowledge learnt at
University was the right time because it was the time I learned on how to
calculate tax liability and interest whereby I did it without any problem. Through
acquisition of new practical insights, it equipped me with more capacity in
utilization of analytical skills and problems solving skills, creativity and
confidence
2.5measuring
Demand of the Assigned Duties
Although most of the
duties performed were on routine basis (like TIN registration) which increase
the efficiency and effectiveness of carrying them, some of them were
challenging and require more experience and practice. For example of the
challenging task was when the client has forgot TIN it require to check it
through ITAX and it require an authority from the account user.
I tried my level best
to meet demand of the given duties, for example by doing the task with trustfulness,carefulness,
great accuracy and by finishing the assigned duties on time. At the first was
not easy but I coped with the working environment and become familiar to the organization
normal practice and procedures, the performance increased and higher degree of
meeting the demand of the assigned duties was achieved. The collective demand
of all tasks tends to prepare experienced, trustworthy and creative performer
in the accounting realm.
2.6
Problems Face in Executing Tasks
Generally there were no
major problems in executing the assigned tasks while carrying my PT at
TRA-IGUNGA, because the organization is composed of specialized person which
are more adequate. Apart from the skilled and adequate employee the
organization is facing the problems,
2.6.1
Access to the system
Some of the system used
for different duties/activity (like tracing TIN to those who have forgotten
their number and also keeping records of taxpayer in the ITAX) require password
and also only authorized person is required to login.
2.6.2
Education to the taxpayers
Most of the taxpayers
have no ideas to some issues concerning to tax (penalty for delay paying tax on
due date and also some procedure to follow on weather taxpayer wants to close
the business or unable to pay tax on the required date).
2.6.3
Inadequate of office furniture
Furniture at the office
(table, chair and computer) were not enough to all people which leads to delay
of the assigned duties
2.6.4
Power break down
Most of the work cannot
be per sued when power went off since some of works are performed through
computer(TIN registration, issuing control number for propertytax, payment of installments
and issuing tax clearance).
2.7 Solution and Recommendation to The Problem
Education should be
provided to the taxpayers in order they know how things at TRA goes, furniture
should be added to the in order to reduce idle time during working hours and organization
should generator in order to reduce problem of power break down and increase
work efficiencies of the workers also organization should provide
identification card to the students who goes for PT in order to reduce problem
at the time of physical survey analysis to the taxpayers at their business.
2.8
Expectation Before Going Tothe Training.
My thought was that, PT
would provide all exposure to opportunity that would lead to accounting carrier
development. Most of the expectation to the training were met and not met.
Among of the expectation I have are as follows
i.
Applying my accounting skill (calculation
of installment and interest) into practice and acquire new knowledge.
ii.
I also expect to find a great degree of
confidentiality in accounting field and that is exactly what found and demanded
to follow as the basic rule of accounting.
iii.
To understand more the about labor
market especially to analyze my strength and weakness.
iv.
To work with expert accountant and other
professional staff and gain valuable insight from them.
v.
To make new friend from different
university, background and education level.
2.9
New Things Learnt
Being at TRA-IGUNGA for
eight week has been of advantage as I learned and acquired new ideas and
techniques in professional and personal life in general. I learned on how to
register TIN to taxpayers, preparation of tax position, registry activity, how
to make assessment to taxpayers, the role of privacy and secrecy of the organization
information and also key success factor
like trustworthy and hard working.
I also learned how people work together as a
team despite of their difference and how this working relationship influences
the performance of the organization. Mostly important, I learned how to live
and work with different people with different attitudes and vision.
I learned on how to
communicate with different customers because most of the taxpayers were asking
different questions.
2.10
In Teaching between Theory And Practice Gaps
During my PT it’s time
for discovering a gap between theory and practice. Theory is usually provided
in order to build the way for practice to undertake because you cannot practice
something without the theoretical aspects and also theory cannot cover all what
is needed at the market.
During my PT at IGUNGA there were gaps exists
between theory and practice such as
Computer knowledge,
the computer course which is provided at University is more theoretical which cannot
meet the demand of the labor market especially in software like ITAX which is
used to keep records of the taxpayers.
The knowledge received
from lecture is general of what is in the real world.Only basic knowledge and
principle are provided.This make the first day in real world though and force
the student to start learning and incorporate the new incoming ideas and
knowledge and since no two organization are similar, the lecture fail to fully
prepare the student for specific organization by only provide them with the new
one.
In other area, there
were no gap between theory and practice as I receive the instruction on what is
to be done from my supervisor. The senior provide information,instruction,
regulation and other things to follow in working place that brought me up to
date with the assignment and it helped in reducing the gap between theory and practice.
2.11
Employment Prospects.
I will not lose any
employment opportunity which will be offered by the organization soon after I graduate.
The firm has good working environment and encouragement teamwork and potential
to professional growth. All these make TRA the target for any reasonable person
seeking a reputable and properly employment.
During my stay at TRA, I did my level best
through hardworking, trustworthiness,discipline and creative to make sure I
stand in a good position to be employed in this organization.
For all that, my internal supervisor was
impressed with my energy of hard working and abilities and recommend that I
should apply in case of vacancies.The firm recruit graduate each year and give
them a training contract that I prefer for my carrier development .I will not
be more than happy to work with TRA.
2.12
Relevance of Attachment
The field attachment
was relevant to me in obtaining training and valuable experience in real life
situation and acting responsibly as real employee and observing the code of
conduct bearing in mind the practical training objectives.It helped to integrate
theory received from lecture and practice, develops habit of critical thinking
and exposed to managerial decisions through cooperation received from TRA staff
team.
The practical training
also helped to receive new ideas, analytical skill,creativity,problem solving
skills, practicing organizational culture behavior like punctuality,discipline,dressing
code and accountability.It enable me to acquire new knowledge in work place,
whereby it is not possible to acquire all of required knowledge in the class,
therefore the PT has filled the gap that were not possible to be filled in
lecture.
CHAPTER
THREE
3.0 Conclusion
The TANZANIA REVENUE
AUTHORITY is a government agency of Tanzania, charged with the responsibility
of managing the assessment,collection and accounting of all central government
revenue. It is semi-autonomous body that operates with the Ministry of Finance
and Economic Affairs.
As far as PT is
concerning, its main purpose of being established is to give an opportunity for
student to be able to integrate theory with practice. During the stay at TRA I
realized this, which not added a new insight on my study career but concerning
those theories already existing. Also, have learned to behave professionally
that is deliver services in accordance with TRA policies and relevant technical
and professional standards, respect the confidentiality and
privacyofclients,people and others with whom the firm does business.
In addition to that, PT
opens up employment opportunity for the students since the same organization
might call back the student after graduation. This is because practical training
widens the knowledge and exposes the student in real practical world.
Furthermore, my
practical training at TRA enhanced my knowledge in business and technology.It
improves my skills,knowledge, life experience, confidence, and life experience.
3.1:
Recommendation Concerning Improving Gap In Teaching.
I order to narrow the
gaps in teaching I suggest the following consideration to be revised
√ Additional
necessary effort to ensure student are competent information technology. There
should be more practical training session program in computer programs. On my suggestion
it will enhance efficiency use and quick adaptation to technological
developments taking place in the organizations.
√ The practical training
should be added rather than theoretical
aspects when teaching, for example student are taught business terminologies
and instruments like cheque, letter of credit and bill of exchange and how they
are used. This will make them efficient when they are employed because most of
this are common in business organization.
√ The PT should be
improved by ensuring that the students are placed in the specific department in
the organization regarding the field of study of the student. Time for
practical training should be extended say to ten (10) weeks; this will at least
give student enough time to work in the organization to get more experience.
3.2: Recommendation Concerning Handling Gaps In
Placement Process.
In order to handle gaps
in placement process I suggest the following consideration to be revised
√ The placement process
should be done earlier to ensure that at mid of the second semester each
student is properly placed.
√The faculty should
contact different organization to know if and how many placements are they
going to offer. This will improve the placement process and reduce the task of
going around looking for the placement to the student.
√ Student should be
given assignment to go and obtain information on how the organization operate,
accounting package used this will help students to acquire more knowledge.
√ Also student should
go frequently for study tour in various organizations and industries; this will
enable them to see how practically managers in several departments are
performing their managerial work.
√Organization should
cooperate fully with the student to ensure the students are assigned tasks to
reflect their field of study.
LIST
OF APPENDICES
UDBS field attachment report format and guide 2019
The united Republic of Tanzania (2004) Income Tax
Act (2004)
TRA website- WWW.tra.go.tz
Mpongoliana R.G (2005) The Theory and Practice of
Taxation in Tanzania, NBAA.
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