Q&A – 22 February 2016

Engagement, no marriage

I gave my fiancee a diamond ring worth millions only for her to now change her mind apparently because she wants to study and needs more time. Can I put a claim on her? I still like her.
HF, Mtwara

An engagement is an agreement to get married. It is not a marriage but an intention. One cannot force your fiancee to get married to you- you can only request her, and there is nothing much you can do about her changing her mind. Since you still like her, putting a claim on her will likely cement her position of not wanting to marry you so move with caution.
However since you gave her the ring in contemplation of her agreeing to marrying you, and since she has changed her mind, the Law of Marriage Act allows you to bring a suit, for the return of the ring since the marriage has not been contracted. However the Court will need to be satisfied that the ring was given with the intention on your part that it should be conditional on the marriage being contracted, and not otherwise. If you can prove so, it is likely that you are entitled to get the ring back. If she can prove otherwise, you might not get it.

Suing automobile manufacturer

A friend of mine ordered a new model vehicle from a supplier outside Tanzania. The car met an accident when he was driving it in autodrive as he enjoyed himself to a snack. The car met with an accident and failed to perform as claimed in the operational manual. Can he sue the automobile manufacturer?
EE, Dar

With respect we dont see a cause of action. Auto drive does not mean that you leave your steering and have a snack in your car, as it seems your friend did. Auto drive is different from auto pilot in an aircraft and if that was the cause of accident, then we dont see anything that the manufacturer has done wrong.

Training school for military activity

Can i open a school for persons to train them in military type operations so that they can increase the security of their premises? In this era it is important for individuals to train in such activity. Please guide.
FL, Dar

The answer to your question is no. You cannot have a training school for military type operations as this type of training is only reserved for the military.

Under section 62 of the Penal Code it is a criminal offence to do so. This section states that (1) Any person who-(a) without the permission of the Minister for the time being responsible for home affairs trains or drills any other person to the, use of arms or the practice of military exercises, movements or evolutions; or, (b) is present at any meeting or assembly of persons, held without the permission of the Minister for the time being responsible for home affairs, for the purpose of training or drilling any other persons to the use of arms or the practice of military exercise, movements or evolutions. is guilty of a felony, and is liable to imprisonment for seven years, (2) Any person who, at any meeting or assembly held without the permission of the Minister for the time being responsible for home affairs, is trained or drilled to the use of arms or the practice of military exercises, movements or evolutions, or who is present at any such meeting or assembly for the purpose of being so trained or drilled, is guilty of a misdemeanour.

Suppliers in oil and gas projects

Should suppliers to oil and gas companies must all be Tanzanian owned companies? Has the law changed so drastically? What if the expertise is not available locally and requires extensive capital?
VM, Dar

There is a new law, the Petroleum Act 2015 which has recently been enacted. Section 219 which is relevant states that (1) A licence holder, contractors and subcontractors shall give preference to goods which are produced or available in Tanzania and services which are rendered by Tanzanian citizens or Local Companies. (2) Where goods and services required by the contactor, subcontractor or licence holder are not available in Tanzania, such goods and services shall be provided by a company which has entered into a joint venture with a local company. (3) The local company referred to in subsection (2) shall own share of at least twenty five percent in the joint venture or as otherwise provided for in the regulations.

You can see that preference is given to Tanzanian companies or companies that have a Tanzanian shareholding of atleast 25% in a joint venture, or as provided for in regulations. We have not seen such regulations and believe they have not been published yet, but if it is a capital intensive venture, then surely we would expect the regulations to provide for this. You can contact the Ministry of Energy and Minerals for more information.

Permanent establishment in Tanzania

Is it true that under Tanzanian law a permanent establishment is deemed if you have an appointed agent in Tanzania?

The Income Tax Act defines permanent establishment as a place where a person carries on business and includes – (a) a place where a person is carrying on business through an agent, other than a general agent of independent status acting in the ordinary course of business as such; (b) a place where a person has used or installed, or is using or installing substantial equipment or substantial machinery; and (c) a place where a person is engaged in a construction, assembly or installation project for six months or more, including a place where a person is conducting supervisory activities in relation to such a project.

Hence depending on the type of agency, you could be deemed to be a permanent establishment in Tanzania and hence under the ambit of our Income Tax Act.