Q&A – 8 August 2016
Airline misguiding on ticket price
There is a particular airline that advertises sales of tickets at prices and never has them available even if you are the first person to contact them. I have reason to believe that they are trying to attract people to call them to sell seats at higher prices. Is there no law that protects passengers who are treated like this?
PE, Moshi
This is illegal and in contravention of our laws. Under section 22 of the Fair Competition Act it is stated that (I) no person shall advertise goods or services for supply at a specified price if there are reasonable grounds, of which he is aware, or ought reasonably to be aware, for believing that he will not be able to offer for supply those goods or services at that price for a period that is, and in quantities that are, reasonable having regard to the nature of the market in which he carries on business and the nature of the advertisement. (2) Any person who has, in trade, advertised goods or services for supply at a specified price shall offer such goods or services for supply at that price for a period that is, and in quantities that are, reasonable having regard to the nature of the market in which he carries on business and the nature of the advertisement.
This is reportable with the Fair Competition Commission who may make a compliance order.
Attacking religion on facebook
I come from a certain religious sect which a person is always attacking on facebook to the extent that he swears at all believers. Is this part of freedom of speech or can I take action on this person?
FL, Dar
This is not freedom of speech. In addition to this being a criminal offence under the Cyber Crimes Act, it is an offence under our Penal Code which states that any person who, with the deliberate intention of wounding the religious feelings of any person, utters any word, or makes any sound in the hearing of that person, or makes any gesture, or places any object in the sight of that person, is guilty of a misdemeanour, and is liable to imprisonment for one year.
This is actionable and the police takes such utternaces very seriously and we suggest you open a police complaint. Tanzania is a very peaceful country and the state organs will take action. It will lead to immediate arrest and prosecution of such person(s), provided you have reasonable evidence. If this is on facebook, that is a very strong piece of evidence against such an individual.
Uncertainty in tax law
If there is a an uncertainty in a tax law, how can I proceed with the transaction if I am not sure how the Tanzania Revenue Authority will treat it? This is really preventing growth in the economy. How can you help?
LE, Dar
This cannot prevent any growth as the Tax Administration Act caters for situations like this. You can apply for a private or class ruling ahead of the transaction. Section 11 states that the Commissioner General may, on application in writing by a person, issue a private ruling or a class ruling setting out position on the application of a tax law to an arrangement proposed or entered into- (a) in the case of a private ruling, by that person; or (b) in the case of a class ruling, by persons in a specified class. The law further states that where the Commissioner General issues a private or class ruling in respect of the application of a tax law to a proposed arrangement in favour of the applicant or a person in a specified class, such ruling shall bind the Commissioner General.
What can hinder you is if the Commissioner General takes time in reverting. Surely if you follow this carefully you should be able to get your ruling earlier. We wish you all success.
Lottery won overseas
I won a luxury car in a lottery competition outside of Tanzania. I intend to bring it to Tanzania and am told that I will have to pay some astronomical amounts in import duty. Is there no provision for a poor man like me to get exempted? What other options do I have? Can I offload this car in Kenya and drive it to Dar- will that work out cheaper?
GT, Dar
It is true that your luxury car will be liable to some large amounts in import duty. One other tax that you have forgotten to mention is the applicability of 18% value added tax which you will have to pay.
Importation falls under the East African Community Customs Management Act, which is a common act across East Africa meaning whether you import the car through Tanzania or Kenya, the same taxes will apply.
Another option you have is to sell the car wherever it is now. However please note that under our Income Tax Act you are likely going to be held liable to pay income tax on your worldwide income meaning that if this comes to the notice of TRA, you will get taxed for the sell as well, even though it is out of the country.
Under the Income Tax Act there is a provision whereby the Minister for Finance may exempt you from such taxability of income- however that option is discretionary and unlikely that you will get it for a lottery win. Your tax advisor can guide you further.