Doomed after newspaper guidance

I was reading a newspaper column in which a lawyer offered advice on land disputes. The situation was very similar to mine, so I decided to follow the guidance. Later, when I went to Court, the magistrate dismissed my case. I waited outside the courtroom and showed the Magistrate the newspaper column, but she informed me that the advice wasn’t binding and that I should have consulted a lawyer directly. I feel quite misled by this. Is there any way I can hold the newspaper or the lawyer accountable for what happened? Please help me, I lost my land because of this.

OP, Kagera

We are sorry to hear that you lost your case. Unfortunately, some readers assume that legal advice published in newspapers or online columns is equivalent to professional counsel. However, under Tanzanian law, particularly the Advocates Act, Cap 341 [R.E. 2023], a lawyer-client relationship only forms when an individual formally engages an advocate to act on their behalf. According to section 2, a client includes any person who has power, expressed or implied, to retain or employ, and retains or employs or is about to retain or employ, an advocate.

Further, the Law of Contract Act, Cap 345 [R.E. 2023] requires that obligations arise from agreements, and reading a column does not constitute an agreement. General advice published in a column is regarded as educational and informational, not tailored to specific circumstances. The Courts have consistently emphasised that reliance on general legal advice does not establish liability unless there is evidence of fraud or deliberate misrepresentation. Therefore, while legal publications may raise ethical concerns, they rarely give rise to enforceable claims against the lawyer or publisher. Furthermore, it is standard practice to include a disclaimer informing readers that the publication provides only general advice and does not constitute professional engagement.

The lesson here is straightforward: newspaper advice is a starting point, not a substitute for personalised legal consultation with a lawyer. If you have a dispute, always seek direct representation from your lawyer. Think of it as reading a medical column for awareness, but you wouldn’t undergo surgery based exclusively on a newspaper article. Having said that, we do not know the specific facts relevant to your case. Nevertheless, maybe not all is lost, and you may want to consider appealing after a lawyer reviews your case. Consult your lawyer for further guidance.

Business name and legal personality

I registered my business name with the Business Registrations and Licensing Agency (BRELA). I’ve been operating under that name for two years. At the time, my wealthy friend told me that registering my business would create a separate legal entity, like a company. I took some loans from him for the business and failed to repay them. The friend is now after my personal property. I’m confused, does registering a business name mean my business has its own legal personality? Enlighten me please.

NK, Morogoro

This is a classic misunderstanding. Registration of a business name under the Business Names (Registration) Act, Cap 213 [R.E. 2023] does not create a separate legal personality. It is simply a legal disclosure mechanism that ensures the public knows who is behind the trade name. Look at it this way, a business name is like a mask that identifies the business in the marketplace, but does not shield the owner from liability. If debts arises, creditors can pursue the individual or partnership behind the name.

By contrast, incorporation under the Companies Act, Cap 212 [R.E. 2023] creates a distinct legal entity, separate from its shareholders. A company can own property, sue, and be sued in its own name. If you only registered a business name, you are personally liable for debts. Consult a lawyer who can advise you on the options available to address your situation.

Tax deductions of carried-forward expenses

We operate a manufacturing company. In 2023, our company incurred significant marketing and consulting expenses in connection with the restructuring of company operations. However, due to internal accounting delays, those expenses were not recorded in the 2023 accounts. Instead, they were carried forward and claimed in the 2024 tax returns. When the Tanzania Revenue Authority (TRA) audited the accounts, they disallowed the deductions, arguing that the expenses were not incurred ‘wholly and exclusively’ in the production of income for the 2024 year of income. We believe this is unfair because the expenses were really incurred and only accounting delays occurred, which constitutes a valid basis for reconsideration by the Revenue Authority. Please guide us.

BM, Arusha

Your case reflects practical business challenges that, unfortunately, may not be recognised under the law. While the Income Tax Act, Cap. 332 [R. E 2023] permits deductions for certain business expenses, the Court of Appeal has recently made important points that every business owner should understand. The Court held that only expenses incurred wholly and exclusively in the production of income for the relevant year of income are deductible. This means that if you incur expenses in 2023, you must claim them in your 2023 tax return. You cannot push it forward and claim it in 2024. That is to say expenses relating to prior years cannot be claimed in a later year. Even if they are genuine business costs, the law requires strict compliance with the year in which they were incurred.

This case demonstrates how routine accounting decisions can give rise to significant tax disputes and why compliance with both the timing and evidence rules is critical. If your accountants delay recording expenses, you risk losing the right to deduct them. Tax law in Tanzania is unforgiving on this point. The safest practice is to ensure that all expenses are properly recorded in the year they occur. Keep meticulous records of invoices, receipts, and contracts because, without them, the TRA may disallow your claims. Consult your lawyer or tax consultant for further guidance.