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| Change of right of occupancy |
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My farm is located in Maghanga village, Mbulu District, and has a customary right of occupancy which was obtained after we executed an agreement with the village council in 1997. The area is not surveyed because it is still remote from the district area. To enable me effectively secure my right of occupancy should I change my customary right of occupancy to a certificate of title? What process should I follow to enable this change? |
| GP, Mbulu |
There are two kinds of right of occupancies namely the granted right of occupancy and the customary right of occupancy (deemed right of occupancy). The deemed right of occupancy is granted by the Village Council because all of the village land is vested under the Village Council.
It must be noted that under the eyes of the law, both rights of occupancies have equal status and neither is better or superior to the other. Bearing the equal status of the two in mind, there is no need for you to change your customary right of occupancy to a granted right of occupancy. You also cannot own a granted right of occupancy in an area which is under the village council.
Should the President transfer the village land to general land for public interest, the occupiers will be paid compensation for unexhausted improvements equal to the compensation that would have been paid when general land is acquired by the government for public interest.
If the land is transferred to general land under the order of the President and the occupiers are permitted to continue with occupation of the land, you can then apply for the granted right of occupancy on the said land because it will no longer be under the village council.
Previously the Village Council did not issue certificates to owners of the |
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customary right of occupancy but recently owners of customary right of occupancy can acquire certificates of title from the village council. You may want to apply for this certificate. |
| Putting company into administration |
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For the past 5 years, a large company in Dar is unable to clear its debt owed to me. My accountant suggests we put the company under administration. How do I do this and who should I contact? |
| SP, Dar |
Whenever you are collecting debt, you must remember that the ultimate objective for you is to get paid. As soon as you lose sight of that objective you may end up spending excessive amounts in your recovery mission.
The companies act provides that if the court is satisfied that a company is or is likely to become unable to pay its debts and considers that the making of an order would be likely to achieve one or more of the purposes mentioned in the act, the court may make an administration order in relation to the company.
The act further defines an administration order as an order directing that, during the period
for which the order is in force, the affairs, business and property of the company shall be managed by a person (''the administrator'') appointed for the purpose by the court.
In short the administration order you seek can be obtained by filing a petition in Court; this can be a tedious process and your lawyer can guide you through the pros and cons of doing so. |
| Unpaid VAT, notice of distress |
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I was away and the Tanzania Revenue Authority (TRA) assessed a certain amount of Value Added Tax (VAT) on my company. They sent letters that were not responded to by my managers. I have just been hit with a notice of distress. What is this and is the TRA within its powers to do this? My auditor is scaring me that if I do not pay the amount, the TRA |
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| have power to seize my company assets including the goods in my godown? How can this be true? Doesn’t the TRA need a Court order to seize my goods? |
| WP, Dar |
Nowhere in your question have you denied that you do not have to pay VAT to the TRA. If that is the case, you indeed do have a debt owed to TRA and just as you would move in to try recover any debts owed to you, TRA is doing the same with the notice of distress.
The relevant law is the VAT Act which states that if after an appeal any tax or interest due from a taxable person remains unpaid or a taxable person fails to appeal to Appeals Tribunal after the Commissioner notifies him of the tax or interest due from him or a taxable person refuses without any cause to pay the tax assessed by the Commissioner, an authorised officer may under warrant by the Commissioner levy distress upon the goods and chattels of that taxable person. The notice of distress you have been served with is thus within the powers of the commissioner general of TRA.
Please note that the VAT act also provides that the officer executing the warrant may, with the assistance of a police officer or any other assistants whom he may consider necessary at any time between sunrise and sunset, break open any premises of the taxable person. No Court order is required for this.
The goods and chattels on which distress has been levied under shall be kept for ten days either at the premises at which distress was levied or at any other place as the officer executing the warrant may consider appropriate, at the cost of the taxable person.
The Act goes on to state that should the taxable person not pay the amount due under the VAT Act,
together with the costs incurred by TRA in the execution, the goods and chattels shall be sold by public auction and the proceeds will be applied towards payment of the VAT. |
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This column is intended to give you a general over view of
the Law. It is not a substitute
to the role of your legal advisor. If you
have legal issues, you are strongly recommended
to contact your Attorney. |
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