Interpretation of tax statutes

I run a small business in Tanzania and recently received a tax assessment from the Tanzania Revenue Authority (TRA). I believe they misinterpreted the law and overestimated my tax liability. I also think the law is unclear, which may be why my tax liability was overestimated. How are tax statutes interpreted in Tanzania, and do I have any legal grounds to challenge this assessment? Please guide me.
SF, Arusha

The interpretation of tax statutes in Tanzania adheres to established legal principles designed to ensure clarity, fairness, and consistency in tax administration. Typically, the strict approach to interpretation is utilised where the language of the statute is clear. This implies that tax laws cannot be extended beyond their explicit wording. If a law is ambiguous, it is usually construed in favour of the taxpayer. Therefore, when a tax statute lacks clarity, it should be interpreted in a manner that does not unjustly burden the taxpayer. The Court of Appeal of Tanzania has reaffirmed that tax laws must be interpreted based on their plain meaning, devoid of assumptions or implied extensions in many of its decisions.

As you have not specified the type of tax in dispute, we will provide general guidance regarding the grounds for challenging the assessment. A tax assessment can be contested for lack of legal basis. However, the burden of proof in tax cases typically falls on the taxpayer to demonstrate that the TRA’s assessment is incorrect. Nevertheless, the TRA must also substantiate its assessment with clear legal and factual grounds.

If you believe the TRA has misinterpreted the law, you possess the right to challenge their decision. File an objection within 30 days with the TRA as provided under the Tax Administration Act, 2015. Prior to filing the objection, and within 15 days of the date of service of the assessment, you are required to pay a one third deposit of the tax assessed (or seek a waiver for a reduced amount or full waiver) for the objection to be entertained.

If dissatisfied with the outcome of the objection, appeal to the Tax Revenue Appeals Board (TRAB). It is advisable to consult a professional (tax consultant or lawyer) who can meticulously review the tax assessment and compare it with the relevant tax law.