Documents submitted after audit

I run a business in Dar es Salaam and was recently audited by the Tanzania Revenue Authority (TRA). During the audit, TRA asked me to provide several invoices and supporting documents. I provided some of them but could not locate all the documents before the audit was completed. TRA subsequently issued an adjusted tax assessment against my business. I have now managed to retrieve the missing documents, and I believe they support my position that the assessment is incorrect. I intend to submit them when objecting to the assessment. A friend has told me that because I did not provide the documents during the audit, TRA will not consider them at the objection stage. Is that correct? Have I lost the opportunity to rely on these documents simply because I did not submit them during the audit?

RT, Dar es Salaam

This is a very interesting question. The fact that you did not submit the documents during the audit does not necessarily prevent you from relying on them when objecting to the assessment. The Court of Appeal has recently clarified that the audit process and the objection process under the Tax Administration Act, Cap. 438 are distinct. Under section 62(5) and (6), a taxpayer lodging an objection may attach the relevant documents and information intended to support the objection. The Court further noted that section 63(8) allows a taxpayer to apply for additional time to submit evidence or documents that were not submitted together with the objection.

Accordingly, on the basis of the current binding authority, you may submit the documents supporting your position together with your objection even though they were not produced during the audit. However, taxpayers should, as far as possible, provide all the necessary documents and the documents requested by TRA during the audit within the prescribed time. Doing so may avoid unnecessary disputes over the admissibility of documents and enable TRA to consider the relevant information before issuing an assessment. In your case, you should therefore attach the relevant documents to your objection and clearly explain how they support the grounds on which you rely to challenge the assessment.