Cancellation of TIN
I recently changed the name of the business I bought from a colleague. Last week, Tanzania Revenue Authority officers inspected the business and warned me that the TIN number would be cancelled because of the name change. I do not think this is fair. Why should TRA cancel the TIN? I carefully ensured my new business met the legal requirements while changing the name.
EM, Dar es Salaam
It is good that you complied with all the legal requirements regarding change of a business name. However, you should note that the business name is a crucial detail, and its change affects the formal records kept by government authorities. You may, therefore, need to inform the authorities about the change of the business name.
Generally, tax administration matters are governed by The Tax Administration Act [Cap. 438 R.E 2019] (TAA). The Tanzania Revenue Authority (TRA) does not restrict changing business names. However, for administrative purposes, Section 25(2) of the TAA requires that a person who owns a Taxpayer Identification Number (TIN) shall, in writing and within 30 days from the date of any change of details referred to in the Taxpayer Identification Number Certificate, notify the Commissioner General of the changes in the Certificate. Without cancelling a TIN, the Commissioner General may issue a person with an amended TIN certificate when appropriate. If you fail to do so within the specified time, the Commissioner General shall cancel a TIN where he is satisfied that the identity of a person holding the certificate is different from that of a person to whom the certificate was issued. In that regard, changing the business name without informing TRA is reasonable ground to warrant the cancellation of TIN. We advise you to write to the Commissioner General as required by law.