Technical delay in taxation

I am a foreigner running a marketing company in Tanzania, and I am unfamiliar with Tanzanian law. We appealed against a significant tax assessment by the Tanzania Revenue Authority (TRA). Our first case did not go well. We were unsuccessful at both the Tax Revenue Appeal Board and Tribunal. Consequently, we attempted to appeal to the Court of Appeal. However, our appeal was struck out due to a technical issue with the Tribunal’s records, as they had a defective certificate of delay. After we corrected everything and submitted the application to lodge a new case, TRA objected, claiming that we were out of time and should not be given another opportunity. Is there any mercy in law when the delay results from official procedures rather than negligence? Our lawyers say there is hope, but after losing twice, we cannot trust them anymore.

DP, Dar es Salaam

Legal procedures can be complex, so consulting a lawyer is advisable. From what we have gathered, you submitted an appeal within the required timeframe, meeting all procedural requirements. Unfortunately, the first appeal to the Court of Appeal was struck out due to technical faults, not because the company was careless, but because of errors in the record prepared by the Tax Revenue Appeals Tribunal. Legally, this is called a technical delay. This type of delay occurs when a party has taken all necessary steps within the prescribed period but is prevented from proceeding further by circumstances beyond its control, often procedural or administrative lapses by the Court, tribunal, or registry.

In several cases, the Court has observed that if a litigant does everything correctly, such as filing on time, following up diligently, and only losing time due to technical failure rather than their own fault, a Court may grant an extension of time, allowing the new case to be considered on its merits. However, the Court also warned that ‘technical delay’ is a narrow exception and not a licence for negligence. Anyone seeking an extension must provide evidence for each day of delay, demonstrate diligence and good faith, and prove that the cause of the delay was outside their control. We believe your lawyers can guide you further on this but it seems you should be able to pull this through.