UNIVERSITY OF DAR ES SALAAM

SCHOOL OF ECONOMICS

A REPORT ON PRACTICAL TRAINING CONDUCTED AT TANZANIA REVENUE

AUTHORITY ILALA-CHANIKA

STUDENT NAME: ZACHARIA MATIKO MAKENA

DEGREE PROGRAM: BAEST

REGISTRATION NUMBER: 2022-04-05856

HOST OF ORGANIZATION: TANZANIA REVENUE AUTHORITY

TRAININIG OFFICER:

ACADEMIC SUPERVISOR:

DATE:
TABLE OF CONTENTS
DECRALATION …………………………………………………………………………………1
CERTIFICATION …………………………………………………………………………………2
ACKNOWLEDGEMENT........................................................................................................................2
ABSTRACT.............................................................................................................................................3
ABBREVIATIONS/ACRONYMS..........................................................................................................4
CHAPTER ONE.......................................................................................................................................5
INTRODUCTION....................................................................................................................................5
1.0 TRA history background......................................................................................................5
1.2 Functions of TRA.................................................................................................................6
1.3 Core Values..........................................................................................................................6
1.4 TRA Vision...........................................................................................................................7
1.5 TRA Mission........................................................................................................................7
1.6 Objectives of
TRA……………………………………………………………………………………….
……………………..8

2.0 CORE ACTIVITIES OF THE ORGANIZATION..........................................................................10

2.1.0 Duties performed at Buguruni tax service center;.................................................................10
2.2.0 Challenges encountered during trainning..............................................................................11
CHAPTER 3 ..........................................................................................................................................13
4.1 Expectations and Realties.........................................................................................................13
CHAPTER 4...........................................................................................................................................14
4.0........................................................................................CONCLUSION AND RECOMENDATION
................................................................................................................................................................14
4.1 Conclusion..........................................................................................................................14
4.2 Recommendation................................................................................................................15
REFFERENCES.....................................................................................................................................17
 ACKNOWLEDGEMENT

Firstly, I would like to thank the almighty GOD for his glory beneficent and merciful who gave
me the courage throughout the conduction of my field practical training. Also I would like to
thank my parents for their support during my training. My center supervisor Miss. Agness
Luambano, the branch manager for showing me all the possible support whenever needed, she
has always been there and I acknowledge her effort and commitment. Lastly I would thank
supervisor Mr. Aqram, MR. Senga, Ms. Asma and all TRA staffs at CHANIKA TAX SERVICE
CENTRE (CTSC) for their support throughout my training, together with my fellow students
who were together during the training I really appreciate their contribution and support.

ABSTRACT

The field practical training for the year 2022 was held from 28 th March to 08th July 2022 under
the Centre for Foreign Relations act that all second year students at the Centre for Foreign
Relations informatics are allowed to go for the practical training for the purpose of transforming
their theory into practical study as well as facing real-world challenges and learn how to tackle
them.

The Field Practical Training took place at TANZANIA REVENUE OF AUTHORITY-DAR

ES SALAAM at Data Processing Section Department where I was trained on how the Taxpayer
Identification Number (TIN) is being processed in terms of business and non-business, I was also
trained on conduction of accesment of new taxpayers in terms of individuality, company,
partnership, branch and group (TIN), but also assessment of the old cases which is the existing
business

These tasks involved the usage of computer and other systems which developed the purpose of
processing customer’s information. All these activities and tasks were helpful in transforming a
theory acquired from our University to practice as I was able to increase knowledge in ICT.
ABBREVIATIONS AND ACRONYMS
TRA -Tanzania Revenue Authority

DRD -Domestic Revenue Department

ITA -Income Tax Act

EFD -Electronic Fiscal Device

RGS - Revenue Gateway System

RM - Regional Manager

BLTCC - Business License Tax Clearance Certificate

BTSC – Buguruni Tax Service Centre

TIN – Taxpayer Identification Number

 CHAPTER ONE

INTRODUCTION

1.0 Historical background of TRA

The Tanzania Revenue Authority (TRA) is Government Agency established by TRA Act Chapter
399 and became operational on 1st July 1996.

Semi-autonomous institution established to asses, collect and account for the central government
revenues. TRA was established by the Act of Parliament No. 11 of 1995, and started its
operations on 1st July 1996.

Before the establishment of TRA, there were two independent tax departments which were
Income tax department under the Ministry of Finance and Sales tax department which later
became V.A.T department. These two departments were joined to form Tanzania Revenue
Authority (TRA) in 1995.

In executing its function TRA has twelve department functions, where four departments are
operational function departments and the remaining eight are administrational or supporting
functions departments. The operational functions are Domestic Revenue Department, Customs
and Excise Department, Large Taxpayers Department and Tax investigation department while
supporting departments are Directorate of board secretariat and legal service, Directorate of
research and policy, Directorate planning and modernization, Directorate of Finance, Directorate
of Human resources and administration, Directorate of Internal Audit, Directorate of Internal
Affairs

Over the last two decades Tanzania Revenue Authority (TRA) has matured from a tax
administration that provides tax type services for revenue collection to an efficient organisation
that delivers one stop shop services for all types of taxes which has steered service delivery to
the level of ISO 9001:2008 certification for the organisation. The organisation is managed
through processes and systems with all operations guided by the Corporate Plans which have
evolved from the first, second, third and current fourth. The first Corporate Plan focused on
institutional and capacity building of TRA, the second focused on integration of domestic
operations from tax type to functional basis for effective service delivery, the third focused on
automation of operations to enhance effectiveness of operations while the fourth looks at
enhancing domestic revenue mobilisation through effective utilisation of ICT in order to offer
convenient services to taxpayers while improving compliance.

1.1 Functions of TRA

TRA was established purposefully for the function mentioned under Section five (S.5 )the TRA
Act as follows

• To administer and give effect to the laws or the specified provisions of the laws set out in
the First Schedule to this Act, and for this purpose, to assess, collect and account for all
revenue to which those laws apply

• To monitor, oversee, coordinate activities and ensure the fair, efficient and effective
administration of revenue laws by revenue departments in the jurisdiction of the Union
Government

• To monitor and ensure the collection of fees, levies, charges or any other tax collected by
any Ministry, Department or Division of the Government as revenue for the Government.

• To advise the Minister and other relevant organs on all matters pertain to fiscal policy, the
implementation of the policy and the constant improvement of policy regarding revenue
laws and administration.
 • To promote voluntary tax compliance to the highest degree possible.

• To take such measures as may be necessary to improve the standard of service given to
taxpayers, with a view to improving the effectiveness of the revenue departments and
maximizing revenue collection.

• To determine the steps to be taken to counteract fraud and other forms of tax and other
fiscal evasions.

• To produce trade statistics and publications on a quarterly basis, and

• Subject to the laws specified under the first function, to perform such other functions as
the Minister may determine.

1.2 Core Values

TRA core values are a handful of moral boundaries within which TRA operates. They define
TRA’s personality and are ethical standards by which TRA would be measured. The values are a
commitment to the stakeholders and are incorporated into all actions taken by the organization.

a) Professionalism: We are committed to applying the law consistently,

responsibly and with credibility using the skills and knowledge as a

prerequisite in administering our requirements.

b) Accountability: We create and sustain an organization that values and

promotes accountability

c) Integrity: We believe in being fair and honest in all our dealings with

taxpayers and other stakeholders.

1.3 VISION OF TRA

“To increase domestic revenue through enhancement of voluntary tax Compliance”

1.4 TRA MISSION
“To make it easy the payment of tax and make lives better”

1.5 TRA stategic objective and the fourth corporate.

In cognisance of the guiding forces mentioned, it is very clear that during the implementation of
the 4th Corporate Plan, greater reliance on domestic taxes to warrant reduction of dependency on
international trade taxes shall be ensured. Efficiency in tax administration is another area of
focus to warrant value for money operations by optimal technology utilisation which will
facilitate electronic taxpayer services for registration, filing, payment and overall electronic
interactions with TRA. This new way of doing business requires a change in culture for both
taxpayers and the tax administration so as to be able to adapt to the new methods and
approaches. The organisation is entering a new era which focuses on taxpayer
convenience while interacting with TRA, enhanced compliance and continually adopting best
practices in tax administration through continual improvement of the processes to realize
objectives of the fourth Corporate Plan. Hence the strategic themes for the fourth Corporate Plan
are Convenience, Compliance and Continual Improvement.

1.6 Strategy monitoring and evaluation

TRA is aligning its strategic planning, performance monitoring and evaluation approach with
emphasis on service delivery. This new planning approach emphasizes the need to set and
achieve clear outcomes associated with each of the strategic priorities. Corporate performance
reporting is based on an assessment of the outcome and output measurements. The monitoring of
inputs and activities generally takes place at a more disaggregated level. The alignment of and
linkages between activities outlined in individual work plans, Annual Departmental Plans and the
Corporate Plan ensures consistency of performance reporting at all levels within the
organization. The intention of performance measurement is to report on the outcomes. The TRA
Monitoring and Evaluation Database (TRAMED) will continue to be used as a tool for
systematic monitoring and evaluation of the implementation of the Corporate Plan. Each
department is responsible to input their implementation status into TRAMED on a monthly basis.
Monitoring is a continuous process, reporting on implementation of strategy is done on quarterly
basis while evaluation is carried out on yearly basis for major initiatives with heavy investments
and which have significant impact to the strategy. TRAMED will be upgraded to incorporate an
Executive Dashboard that enables Management to view instantly implementation status of
strategy execution at click of a button. This will facilitate instantaneous decision making on
corporate strategy performance. Hence TRAMED is the single system for reporting
implementation status of the Corporate Plan.
1.7 Organization structure of Tanzania Revenue Authority
 CHAPTER TWO

CORE ACTIVITIES OF THE ORGANIZATION

During my practical training at Ilala tax region, i had opportunity to work at two (2) different
departments although their three department at that center which are;

• block department

• Data processing department.

• Examination departmet

2.1 Block Department.

This department is classified in different blocks according to areas of the customers, such as
chanika, gongolamboto, and buguruni. The core activities of this department are;

• Prepare and issuing tax clearance

• Provision of education to education to the taxpayer

• Registration of the taxpayer

• Making estimation of tax to the customers (issuing assessments to customers)

• Conducting interview with customers in case of new case and old case

• Conducting physical survey

• Registration of business ,and

• Preparation of demand notice and determination of tax arrears

2.2 Examination Department.

This department its dealing with company and large taxpayers who make its own estimation.
The following are activities performed at these departments;

• Receiving customers’ accounts / returns for each year of income

 • Receiving customers estimate / revised estimate of tax payable by installment made on
behalf of an entity.

• Provide assessment

• Make capturing of accounts

• Record customers’ accounts

• Determinations of tax arrears

• Customer care service

2.3 Data Processing Department

This department consists with providing tax clearance to the client and offer Tax Identification
Number (TIN) to the customers and retrieve, closing or transferring their TIN into the system.
 CHAPTER THREE

DETAILS OF ACTIVITIES AND TASKS I PERFORMED

From 8th July up to 8th September, it’s my time which I taken up to perform my field report at
BTSC. But on 8th July it was my reporting time and its orientation day on the general overall
duties done at that area. The following are some of activities and tasks I performed during my
practical training from 9th July up to 8th September, this are;

3.1 REGISTRATION OF NEW TAXPAYER.

For the first time I will register a new individual taxpayer who want or intend to conduct a
business. A new taxpayer is registered for purpose of getting a TIN certificate and tax clearance
so as to conduct a business. Before registration a new taxpayer is required to submit the
following documents to the officer;

• Contract between him and his/her landlord (if he/she rents a house or area for business)

• Receipt for rent payment tax if he/she conduct a business in its own area.

• Local government authority identification letter

• Voter or National identification certificate (copy)

An individual is registered for purpose of obtaining a TIN, during registration also we creating a
file for a new taxpayer so as to keep its records. A file complies a name, TIN number and
location of its business. But all registration processes its done through note of interview
(assessment form).

3.2 PRINTING OUT THE TAXPAYER RECEIPT.

A taxpayer receipt contains a control number which enable a taxpayer to make payments. For
a new taxpayer he/she obtain a receipt which require him to pay withholding tax and stamp duty
which is complies 11% both only while for old taxpayer he/she obtain a receipt for its installment
which require him to submit on each installment which is within three months each.

Note

Withholding tax and stamp duty its paid once per year only.
2.3This was also performed at front desk whereby taxpayers with any queries or need of
assistances like how to fill forms, how to register on Revenue Gateway System and make online
payment, and sometimes taxpayers may be asking for direction on another TRA office where the
specific service is being offered for example taxpayers in need of driving licences.

2.1.3 Physical survey.

In a block were i was allocated (Buguruni block) we had a routine of conducting at least two
physical surveys a week, whereby we visited our taxpayers along Buguruni block, we took their
informations, verify compliance like the use of EFD machines, payment of taxes, crosscheck the
last tax paid if its reasoble compared to the business perfomance outlook.

Then the informations we collect at the survey we use to update the pre-existing information,
prepare physical survey report and the block management report.

2.1.4 Opening new case

A new case is a new TIN of a taxpayer. To open a new case it implies that to register a new
taxpayer. On this case i was receiving a new TIN application, verify if the forms are filled
exactly as required, vetting the attached documents for example; reantal deed which must be
assesed and paid withholding and stamd duty on rent, certificate of incorporation (for company),
meorandum of association (for company), two passport size, copy of identity card also a filled
and stamped local goverment-introduction form.

After vetting the application and attached documents, I interview the taxpayer, then attached the
interview with application and recomend to Head of Block for approval. After being approved
the file is sent to Data processing for data capturing and fingerprints. Then the TIN certificates is
printed and issued to a taxpayer.

2.1.5 Issue assesments.

Another duty i was performing at the center was determinanation of amount of tax payable by
the taxpayer. The comon assesment issued was on provisional income taxes for the year of
income 2016, in both new taxpayers (new case) and existing taxpayers (old case),corporates and
individuals. In all the cases taxpayers were to be interviewed and make the best esimates on their
turnover/income and from their tax is being computed. Nowdays TRA has made it easy by
introducing tax tables which is the book having tax rates and individual monthly income with
their respective taxes.

2.1.6 Preparation of tax positions.

A tax position is a reconciliation of tax debited/assesed and the tax paid so as to determine the
amount of tax unpaid by the taxpayer. This done on exel sheet using information from the tax
account of the taxpayer on ITAX. Any taxpayer applying for BLTC must be verified to have nill
balance on tax position and to identify if a person have unpaid tax or not tax position must be
prepared.

2.1.7 Determination of tax arrears and issue of demand notice

Another duty that i was duing at the center was to determine the unpaid tax of the respective
taxpayer and verify if that was the only unpaid type of tax or there ara others, then i prepare
demand letter/notice to require the taxpayer to settle that tax and make follow up till the whole
amount is paid.

2.2.0 Challenges encountered during trainning.

During the entire period of practical trainning roles were not smoothly perfomed as I
encountered several challenges, the following are the chgallenges i faced during my practical
trainning;

2.4.1 Shortage of working facilities.

This was encountered from day one at Buguruni Tax service centre whereby there very few
computers compared to number of staffs, staffs had to interchange computers so as to fullfill
their dailly routine. I tried to fix one of the long time isolated computer which was missing some
of its hardwares fortunate it worked although it had no ITAX system and yet the shortage was
still there.

The same problem was faced at EFD unit and Enforcement unit, where for Enforcement the
situation was worse because even some the pre existing staffs had no computers leaving the field
trainnees with no option other than to cope with the envieronment.
2.4.2 Time constraints.
Period set for the trainning is short hence it was difficult to rotate in all the departments whereby
i didnt had a chance to work for departments like Real estate, Normal flow, Audit, Examination,
Technical service and objection despite the fact that I posses knowledge that may enable me to
work there. But also with the limited time that we possesed we could not be allocated shorter
than a month per each department because it was intended that a month was a minimum time to
exhaust all the duties performed by the department.

2.4.3 Transport
This was huge challenge especially during the moments when we conduct physical survey, for
example when I was at Buguruni Tax service center, we had to walk on sunny daylight from the
office to Buguruni block which is more tha four kilometer then start surveying which requires
passing all the streets in the block and getting to the office on foot. This was very hard especially
with the hot weather condition of the city.

2.4.4 Dealing with dis-honesty taxpayers

This was also huge challenge especially when making provisional assesments for the year,
whereby a taxpayer may declare to be earning a very low income compared to his actual
collections. To be assured with this is to visit taxpayer’s office or business premise in order to get
the best estimate based on the observed business performance or to get satisfied with declaration.
But since its hard to pay visit every taxpayers who is in need of provisional assesment, then
assesment is made based on best judgement depending on the nature of bussines and it can be
amended in the future.

2.4.5 Dealing with irritated customers.

From the ancient history, we all aware that human kind doest like to pay tax, this habit is
inherited from generation to generation whereby till nowdays people doesnt feel responsible to
pay tax and when they are forced to, they get irritated and angry. Among the taxpayers that I
have served during my practical trainning training was irritated taxpayers. These people tend to
panic and make random noises in the office which create unneccesary attentions to other
taxpayers and officials. What I actually does for people like these is to take them to waiting seats
and give them space to calm down. After he/she is calm i attend them by starting with the basis
of their problem, treat them with empathy as if I feel their pinch and educate the relevance or
importanceof paying that particular tax, in the end he/she leaves the office comfortable and pay
the taxes.

4.0 CONCLUSION AND RECOMENDATION

4.1 Conclusion
Practical training is among the valuable programs organized at the Institute of Tax
Administration so as to enhance the understanding of materials taught in class. The training helps
students or trainnees to integrate theory and practice. The students obtain training and valuable
experience in real life situation which cannot be obtained in lecture rooms. It is in this period
when lesson learnt in class are practiced. Practical training exposes trainnees to new challenges
and experience necessary to get along with their carreers and it gives true picture of what would
be expected or faced the moment we finished the trainning and start working.

Through this practical training I became familiar with my employer’s working envieronment,
and get a chance for the first time to put my knowledge of tax laws into practice, to get further
understanding on the tax computer systems like ITAX, EFDMS, RGS and TIN system which is
very important for excuting my daily duties on career at TRA.

The training was crucial because, apart from practicing what i learnt in class i have obtain new
different skills both technical and soft skills like interaction, negociation and convincing
voluntaly compliance, how to live with others in working environment, unity, cooperation and
teamwork is very important in working environment, and towards archieving the organisation
goal.

Therefore I really had a wonderful career experience by conducting my practical training at Ilala
tax region, I have learnt a lot considering the fact that I was practicing what exactly we were
taught in class, it felt so good to observe how assesments and collections activities are actually
being practiced in the field.

Therefore practical training enhanced my knowledge in business, improved my skills, work

abilities, confidence and life experience. It is then fair enough to say that practical training is of
paramount value to the students as it provides an opportunity of transforming theoretical
knowledge obtained in the class into practice

4.2 Recommendation
I would like to recommend to TRA management on the following areas;

• Computer applications systems.

The Authority should adopt modern and advanced accounting system for example Tall, Pastel
Partner or Quickbooks which allows multiple interface and more accounting ledgers being
managed under one system. This is going to improve the accuracy, timeliness and reliability of
financial information leading to true and fair reports provided by the organization through their
system.

• Human resources.

Also the authority should increase number of staffs due to the higher stortage of staffs which
leads to heavy workload to the existing staffs and makes it difficult to archiev the previous set
collection targets but also hardly division of duties

• Incentives.

This should be to both the employed staffs and we trainees, the management argue that staff
incentives are not necessary as they are just fulfilling their duties in case they work overtime but
I have reason to believe that paying overtime will induce staffs not just to finish their duties but
to perform them effectively and efficient.

Recommendations to the Management of Institute of Tax Administration on the following areas;

• Extension of practical training period

The coverage requirements during this period are not fully met as coverage preference increases
in an inverse proportion with time given. Particulars that I wished to cover/learn during this
period overcome the time given for practical training.
 • Number of staffs for field supervision visits.
Currently the supervisors are supposed to visit student once during the entire practical training
period. The visiting of student once is not enough to know the progress of student in the practical
learning, I advise the supervision to pass at least two times during field time. This will help the
student to be close supervised and the organization he works with to be more concern with his
presence at work. Close supervision will make the student to be more serious with the training at
field hence the goal of learning through practices will be reach.

• Computer studies and studying materials

Following scientific changes and advancement of Information Technology, computer studies are
to be emphasized more and more since still there is a number student in the institute who knows
partially to monitor the internet and other computer programs. The course must be structured in a
way that students get more practice rather than the current ongoing emphasis on theory. It could
be good if we were practically taught some basics on how use computer packages like ITAX,
TIN, RGS or EFDMS

REFFERENCES
• TRA Website

• ITA Website

• Debt Management manual.

APPENDIX 1

IMPRESSION REPORT
Since the first day of my attendance I met generous people who warmly welcomed me and
were with hand in hand from the first day. From the first day I was given a short orientation
through out the center and as soon as possible I was introduced to the tasks I was supposed to
be performing with greater guidance and supervision.

Due to very excellent guidance I was able to adopt to all the tasks as quick as I could and it
was a lot easier than I thought. The staff members had great cooperation with me and that
was a great foundation of me to easily adopt the friendly environment and easy learning.

Generally the organization was glad to have us there, they provided good welcoming to me
and my fellow students.