CERTIFICATION

The undersigned certifies that he has read and hereby recommends, for the acceptance of the Institute of Finance Management research entitled Causes for inadequate use of Alternative Dispute Resolution in Tax Dispute Settlement, a case study of Tax Revenue Appeals tribunal, in partial fulfillment of the requirements for the award of Postgraduate Diploma in Tax Management (PGDTM).

....................................................................................... Zawadi, O. (SUPERVISOR)

Date...............................................................................

DECLARATION

I, Sabiha Abdi Nassib, hereby declare that this research is my own original work, and that it has not been submitted to any other university/institute for a similar or any other degree award.

Signature

.. Date

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Copyright by Sabiha Abdi Nassib All rights reserved 2011

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DEDICATION

I dedicate this work to my dearest son, Abdulrahim Kirondomara for and to My Lovely Husband for.

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ACKNOWLEDMENT

First and foremost I would like to thank the Merciful Allah who gives me power and health all the time for the whole period of my studies.

Many people in one way or another, directly or indirectly, contributed in accomplishment of this research paper .Iam grateful to take this opportunity to acknowledge them.

I sincerely thank Mr. Mujuberi, concerning this study.

my supervisor for his tireless guidance on critical issues

Also ,I would like to express my deeper gratitude to the member of my family especially my beloved husband Mr. Soud H.Soud, my mother Mrs.Mwanjabu M.Omar,all my sisters and my brothers for looking after my children .Without their support it would be very difficult to reach where I am now.

I am also greatly indebted to the management of Ministry of Education, Officers, teachers and all of my respondents. I appreciate the cooperation offered to me. Without them my work could go astray.

Special thanks to my sister Sabiha Nassib ,who accorded me with all the support and conducive environment during my study .She has been very helpful and I appreciate what she has done for me , so I take this opportunity to say a warm thank you

Finally ,I would like to appreciate all my lectures and my classmates of MPA (Human Resource Management) in 2007/2009 ,for being cooperative to me during our study which has enabled accomplishment of my study.

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LIST OF ABBREVIATIONS

TRAA TRAT TRAB R.E TRA ADR

Tax Revenue Appeals Act Tax Revenue Appeals Tribunal Tax Revenue Appeals Board Revised Edition Tanzania Revenue Authority Alternative Dispute Resolution

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LIST OF TABLES

TABLE Table 1: Sampling procedure Table 2: Age of respondents Table 3: Gender of respondents Table 4: Age of respondents Table 5: Education level Table 6: Subject respondents used to teach

PAGE 22 30 30 35 35 36

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LIST OF FIGURES

Figure Figure 1: Tax Appeal resolution machinery and its hierarchy Figure 2: Education level Figure 3: The level of satisfaction Figure 4: Intention to leave the job Figure 5: Gender of respondents Figure 6: Lengths in Teaching

Page 28 31 32 33 34 37

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LIST OF STATUTES

LIST OS CASES

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APPENDICES

Appendix 1: Area of the study Appendix 2: Questionnaire 1 Appendix 3: Questionnaire 2 Appendix 4: Questionnaire Swahili version Appendix 5: Questionnaire Swahili version

55 56 58 60 62

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ABSTRACT

The study intended to examine the factors contributing to teachers turnover from Government Secondary Schools; the Urban West Region in Zanzibar was the focus of this study.

Specifically the study was expecting to identify the factors that contributing teachers change their jobs or to leave government schools and employed in private schools. Another objective is to propose possible measures to the top management of Ministry of Education in dealing with the high rate of teachers turnover.

The data for this study were collected from documents, standardized questionnaires, interviews and informal discussions. Both statistical and descriptive methods of data analysis were used.

From this study the researcher found that job dissatisfaction was the major reason teachers to leave government schools and turn either to private schools or to other institutions. Other reasons includes poor working condition, low salary, lack of motivation as well as poor relationship between teachers and their supervisors.

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DEFINITION OF THE KEY CONCEPT USED

One main concept has been used in this study and the researcher sees the need of defining it; Alternative Dispute Resolution (ADR, sometimes also called Appropriate Dispute Resolution or External Dispute Resolution in some countries, such as Australia) is a general term, used to define a set of approaches and techniques aimed at resolving disputes in a non-confrontational way (i.e. includes dispute resolution processes and techniques that fall outside of the government judicial process). ADR covers a broad spectrum of approaches, from party-to-party engagement in negotiations as the most direct way to reach a mutually accepted resolution, to arbitration and adjudication at the other end, where an external party imposes a solution (Yona Shamir, 2003). The ADR movement started in the United States in the 1970s in response to the need to find more efficient and effective alternatives to litigation. Recently, ADR has become institutionalized as part of many court systems and system for justice as a whole throughout the world. There are four common types of ADR, that are; (i) (ii) (iii) (iv) Mediation Arbitration Conciliation Adjudication

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TABLE OF CONTENTS
LIST OF ABBREVIATIONS.............................................................VII RESEARCH METHODOLOGY..........................................................11 3 INTRODUCTION....................................................................... 11

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CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE PROBLEM Dispute between tax authorities and tax payers are inescapable. This is irrespective of how well a tax system is developed. The mechanisms for resolving tax disputes are very critical in ensuring that tax administration is not only efficient but also respectable and fosters public trust (Luoga, 2009). In ensuring so, the Government introduced unified Tax Appeal machinery under which tax disputes arising from all Revenue Laws administered by Tanzania Revenue Authority (TRA) have to be lodged in the same appellant authority. The Act of Parliament, Tax Revenue Appeals Act, Cap 408 Revised Edition of 2006 under Section 4 and Section 8 establishes the Tax Revenue Appeals Board (TRAB) and Tax Revenue Appeal Tribunal (TRAT) respectively. One among the powers vested to TRAT under Section 17(1) of TRAA, Cap 408 R.E of 2006 is to resolve complaint or appeal by using mediation, conciliation or arbitration, that is to say the Tribunal is powered to use Alternative Dispute Resolution (ADR) in its dispute settlement. The section reads as follows; 17(1) The Board and the Tribunal shall respectively have the power (a) (b) To resolve any complaint or appeal by mediation, conciliation or arbitration Many researches has examined the importance and usefulness of using ADR especially mediation in disputes settlement. According to (Merricks, 2007) conciliation, mediation, arbitration and adjudication are now commonly encounted in such diverse field as family break down, construction disputes, shipping and insurance and travel agency complaints. Merrick is of the view that ADR is the umbrella term for services that provide for the opportunity of resolving disputes without going to Court.
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He concluded by saying that, the Financial Ombudsman Service has developed a very different model from that of the Civil Courts and is the preferred alternative for most retail Consumers of Financial Service. The comparison in style, process, institutional systems and legal approach may offer observers fund for thought about potential development in the Civil Courts themselves. The current resolution procedures which involve heavy emphasis on the Courts do not provide an efficient system to meet the needs of contemporary industrial relation (Singh, 1995). Despite of the fact that TRAT is powered to use ADR, and many studies have been conducted regarding the importance and usage of ADR, the records shows that only 1.2% of the cases determined by TRAT have used ADR and the cases were marked settled between the parties. From that history, is where the researchers interest arose in exploring the causes that lead to inadequate use of ADR in Tax dispute settlement.

1.2 STATEMENT OF THE PROBLEM The usage of ADR in dispute settlement is now common and used in almost every corner in the world. The intension of this research is to deal with the properly and adequate use of the ADR. ADR can be used effectively if the parties to the particular case have interest in that case, the nature of the case is allow it and the judge has a knowledge of ADR process. Many findings from the studies reveals that the usage of ADR is very effective in cost savings (Broker, 2009) immediate resolution (of the dispute), building the good ending relationship between the parties and openness and transparency (as the parties get to know the position of the case and predict the out come and when the decision concluded it is known to both parties and do not come as a surprise as it appears in normal Civil Courts) (Merricks, 2007).

Moreover, (Ilter & Dikbas, 2009) have found out that most of parties agreed to the need for moving away from adversarial methods of dispute resolution. This is because; ADR is short and low costs process, the fear of bad reputation in the sector during it litigation, trying to avoid the deterioration of the close relationships they have with other parties, trying to avoid the work hours spent for the preparation of litigation or arbitration, and the fear of losing in litigation due to the tendentious contrasts. The mediation procedure has found favour with many litigants in several jurisdictions and helped to restore the faith of the general public in the judicial system. In one jurisdiction over 40% of the over 2,500 cases disposed of in one year were mediated settlements (mapigano,J. 1998). Regardless of that analysis, TRAT still uses common known way of dispute resolution under civil proceedings in most of cases. Therefore this study helped in finding the factor that causes the inadequate use of the alternative dispute resolutions in tax dispute settlement and provide recommendations that will help to improve the usage hence eliminate the problem.

1.3 OBJECTIVE OF THE STUDY 1.3.1 GENERAL OBJECTIVE

The general objective of the study is to find out the cause for inadequate use of ADR in tax dispute settlement.

1.3.2

SPECIFIC OBJECTIVES

The specific objectives of this study are:i. To identify the causes of inadequate use of ADR in the Tax Revenue Appeals Tribunal. ii. To identify whether there is a need of using ADR in dispute resolution
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iii.

To suggest the measures to be taken by TRAT in dealing with the identified problem

1.4 RESEARCH QUESTIONS This study will answer the following questions; i. What factors influence inadequate use of ADR in Tax Revenue Appeals Tribunal? ii. iii. Why the ADR has to be used in dispute resolution? What measures to be taken to improve the usage of ADR?

1.5 SIGNIFICANCE OF THE STUDY The findings of the study will explore the important element for the usage of ADR, by doing so it will help the respective bodies to implement ADR as it is required by the law. Also it will introduce the weakness of the ADR and it will give the parties a wider room for choosing the usage of the system. By knowing the importance of ADR this study will also explore for the need of using ADR in dispute settlement. Lastly, the study is expected to enhance TRAT (i.e. members and parties to the dispute) to use the ADR so that it can exercises its powers effectively.

1.6 SCOPE OF THE STUDY The study will cover the in depth on the usage of ADR at Tax Revenue Appeals Tribunal and it will be conducted in Dar es Salaam. This is because headquarter of the case is situated in Dar es Salaam and that is where the researcher will find all expected respondents.

The study data will be referred to eight (8) years. This is because TRAT has officially stated its work from 2002.

1.7 CHAPTER SCHEME The study consists of six chapters. Chapter one comprises the background of the study, statement of the problem, objectives of the study, research questions, significance, scope and chapter scheme of the Study. Chapter two present literatures review which look at the previous study concerning the problem Chapter three focuses on research methodology. Chapter four provide an overview of the Tax Revenue Appeals Tribunal (TRAT), its dispute resolution mechanism, cases decided and evaluation of the method used in deciding those cases. Chapter five presents analyses of the research findings. Chapter six presents summary of the findings, conclusion and recommendation of the study

CHAPTER TWO LITERATURE REVIEW 2.1 CONCEPT OF ADR AND THEORETICAL LITERATURE REVIEW As is appears that disputes are an integral part of human interaction, we must learn to manage them, to deal with them in a way that will prevent escalation and destruction and come up with innovative and creative ideas to resolve them. (Benner, 1995) reveals that, for some time now we have conflict and it often occurs when people of different cultures, personalities, expectation sets, etc interact together. He said that conflict is seen as given and our best expectation is to be able to resolve it or reduce is through the use of strategies, for examples consensual approaches and third party intervention. He add that, no one will dare to suggest that there assumption, in fact, creates a context for conflict, and all attempts to deal with it rise from this basic assumption. transcended. Researchers have found that there is a need to initiate special programmes for conflict resolution and mediation. They believe that as learned to cope with conflict and to live and work more harmoniously with each other we would gain an increased sense of control over our own life and the confidence to assume responsibility for the common good. The programmed was designed to facilitate a climate of collaborative learning and problem solving. The intent was to orient people, connect them with each other, and teach them to internalize and apply conflict resolution skills. (Gahr, Mosca, Sarsar, 1995). (Mbunda, 1985) writes on dispute settlement prior and after independence. He comments on the efforts of the government to have informal procedures of settling disputes in Primary Courts. He argued that the procedures used are not familiar to many litigants, as they do not resemble customary dispute settlement procedures. He contends further that the dominant civil procedure law, which is an adversarial system of dispute settlement, presupposes that the litigants are literate, have enough legal knowledge and
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People discuss strategies for resolving conflict,

hopefully in a win-win manner, but no one dares to suggest that conflict would be

know all the technicalities of the law. He further cautions that the situation in Tanzania does not allow the application of such rules without causing injustices. His work is not based on ADR, but it is relevant to this study in the sense that it narrates the historical aspects of disputes resolution mechanisms in Tanzania. Otaru in her paper Alternative disputes Resolution mechanism in Tanzania 2003, discusses the development of ADR in Tanzania. The author also tries to contrast ADR and pre-colonial or traditional disputes mechanism and opines that ADR in Tanzania can perform better by reintroducing those traditional methods of dispute settlement, her main argument being that in most cases even when settlement is reached under ADR is not for full satisfaction of both parties unlike in traditional disputes settlement mechanism, as the former will have already incurred cost prior going into process of mediation. She contends further that in practice some agreements in form of settlement are not fulfilled by the very parties, thus bringing them to a litigation process in trying to enforce them. The author does not assess other factors such as the problem of dual function of court, the importance and advantages of using ADR and the important factors to be considered before using ADR adequately which are discussed in this study. (Mapigano, J, 1998) comments that ADR is a solution to inherent problems and flaws of litigation created by adversarial model of dispute resolution, which is very expensive, long and too complicated for many litigants and favours the rich and educated. He further documents the reason for adoption of mediation in Tanzania and the conduct of the mediation process. The manual is intended to be used as a guideline for mediators. It also provides a guide to researchers on historical aspects of ADR in Tanzania. According to Chipeta, ADR is generally understood in most cases to mean mediation. This is due to the fact that ADR in Tanzania is so far has taken a form of mediation and is forming part and parcel of civil procedure law. This kind of definition in some cases in practice has not been extended to cover instances such as settlement of dispute mechanism. Therefore, ADR in Tanzania forms part and parcel of civil procedure law and is mandatory annexed to the court system (Gillah, 2006)
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For a tax system to be efficiency, among other elements, it must have a manageable dispute mechanism. There must be special and independent institutions that hold hearing and solve disputes regarding tax issues, and tax payers to have the right to appeal against the assessment during first five years from the assessment date. (Vlaseenko 2001).

2.2 EMPERICAL LITERATURE REVIEW There are several researches on the use ADR in dispute settlement, which have been conducted by different sources. The analysis reveals that nature of case, interest of parties and skill and knowledge of Mediator (Judge) and merit of the case are positively related to the use of ADR.

1.7.1.1 Interest Of The Parties According to (Brooker, 2009) the findings of the mediation of the USA study show that the critical factor for non-settlement of dispute by mediation was found to be the attitude of the parties. He is of the view that Mediation was often ineffective when one or more of the parties had unrealistic expectations, were intransigent or unwilling to compromise or when both parties were too far a part at the beginning of the process.

1.7.1.2 Nature Of The Case Nature of the case is one of the determinant of using ADR. Most cases by their nature are suitable, but some subject matters will be intristically unsuitable for ADR. In the case of Halsery v. Milton Keyves General NHS [2004] ELUCA GV 576, the Court illustrate a number of situation when it might be considered safe to reject mediation. There is where: A party requires a court determination on a point of law; The issue are important for future business;
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A case involves fraud or disreputable commercial conduct; A party desire an injunction; and There is a need for a binding precedent (Ilter & Dikbas, 2009)

1.7.1.3 Skills And Knowledge Of The Mediator The question of who become a mediator has been one of the mostly debated issue. As mediation involves conflict management, behavioral psychology, communication, negotiation techniques and voluntariness the judges must be very well trained and equipped for going to ADR. The training programs are very important and had to be organized for this context and it should be available for all profession as soon as possible (Ilter & Dikbas, 2009) Lack of understanding and experience in ADR can best be overcome by educating and training. This should be carried out early on in the working lives of professionals by universities, professional institutions and specialist bodies such as the CEDR. ( Ekene, Ezulike & Hoare, 1998)

2.3 THEORETICAL FRAME WORK This study reveals that there is one dependant variable which is the use of ADR and three independent variables which are interest of the parties, nature of the case and skill of the Judges/Mediator. The dependent variables is influenced by those three independent variable. Those three independent variable are also interrelated as explained below. Nature of the case naturally have a big impact on the type to be used for dispute resolution. Some cases are very complicated and need for the hard reference of law, strong arguments, reliable evidence and enough time for preparation. When nature of
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the case is ignored and the parties choose to inter into a dispute resolution the outcome of it will not be good for either of the case, because when litigation (normal civil procedure) is adopted, the parties might end up in bad relationship at the end of the case, meanwhile, if ADR is used and the parties feels that they are un-satified with the decision they will lose their chance for appeal. From these we can see that there is an importance of the Mediator/Judge to have enough skill so he can advice on the situation of the case and the parties has to be interested to use either of the two methods and this is where this variables relate. Skill of the Judge/Mediator is also an important element in the use of ADR. In order for the out come of the case to be fair, and effective, not to be bias and base on one party, the mediator must have enough skills to sit in the table and lead to the mediation. However, even if the judge is well equipped, but the nature of the case does not support for ADR, and also parties are not interested. Then it will be difficult for ADR to be used. Interest of parties are also an important element of ADR. If parties to the dispute are not interested in the usage of ADR but all other element are positive, ADR can not be used. In conclusion, both interest of parties, nature of the case and skill of the mediator significantly influence the use of ADR.

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CHAPTER THREE

RESEARCH METHODOLOGY

3 INTRODUCTION This chapter intended to cover the methodology that used when conducting the study. It provides the framework for specifying the relationship among the study variables and a plan for selecting the sources and types of information that used in answering research questions, and achieving the research objectives. The sections covered here aimed in identifying the causes for inadequate use of ADR in tax dispute settlement.

3.1 RESEARCH DESIGN The researcher used case study which aimed at identifying the causes for inadequate use of ADR in tax dispute settlement at the Revenue Appeal Tribunal being the case. The researcher used the case study because this study was aimed at looking only on one stage of tax dispute settlement which is TRAT. The researcher choose TRAT to be the case because, in hierarchy TRAT as considered as equal to the High Court in Court Hierarchy of Tanzania, and the parties after being aggrieved by the decision of the TRAT have left with only one place for appeal which is the Court of Appeal, therefore, if TRAT is able to use ADR and settle the dispute between tax payer and tax authority the parties will have a good room for resolution without going to the final appellate body.

3.2 TARGET POPULATION The study covered the Chairman and Members of the TRAT, the tax payers and their representative, the Offices from Tax Authority who represented the Commissioner General, Management and Staff of TRAT. The researcher intended to analyse five areas as follows,
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i)

The view of the parties to the dispute on the need of using ADR in tax dispute resolution.

ii) iii) iv) v)

The current usage of ADR The intension of the parties in using ADR The knowledge of TRAT and parties to the case about ADR The important elements in using ADR

3.3 SAMPLING PROCEDURE AND SAMPLING SIZE 3.3.1 Sampling Procedure The study used both probability and non probability sampling. In probability the simple random sampling was employed to the majority such as tax payers, tax consultants and auditors, advocates and officers from TRA representing the Commissioner General. This was used because the researcher wanted to give equal chance to the members of population. In non-probability the researcher applied purposive sampling to selected Chairman, Vice chairman, members of the Tribunal, management and staff because these are group of population who hold key position. It was believed that the selected sample can give a picture on what they see and understand about the problem from their experience. 3.3.2 Sampling Size One institution was studied which is TRAT and 50 respondents were selected and examined. The sampling was as follows:i. ii. Members of the Tribunal including the Chairman/Vice Chairman - 6 Management and Staff 1 registrar, 3 officers.
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Parties to the cases which are:(a) 15 Tax payers (b) 15 Tax payers representatives (10 advocates and 5 tax consultants and auditors) (c) 10 Officers from TRA who represented Commissioner General.

3.4 DATA COLLECTION METHOD In the course of carrying out this research, the researcher was able to use both primary and secondary data since it was very difficult to rely on one technique or method due to the nature of the study. 3.4.1 Collection of Primary Data Methods used to collect primary data/information included Questionnaires surveys, Interviews and Participant Observation. These are explained briefly in the following sections: (a) Interviews Semi- structured interviews were administered to Chairman, Vice chairman, Members, Management and Staff of the Tribunal in order to explore the factual data observed by people interviewed. The aim was to gather information on the causes for inadequate use of alternative dispute resolution. (b) Questionnaire survey The questionnaires were used to collect information from tax payers, representatives of tax payers and officers from TRA who represented the Commissioner General. The researcher used both open ended and close ended questions in the questionnaire. Each item of the questionnaire was developed to address a specific objectives and research questions of the study.

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Forty respondents were provided with questionnaires. The questions were asked in the questionnaires as researcher could probe on any matter arising as salient and useful for this study. (c) Participant Observation Other data or information were collected by participant observation, as a researcher being a full time employee of the study area who participate in daily routine of hearing and determining the cases, she had an opportunity to participate in the study and attend all sessions of the Tribunal hence obtain information needed for the research. 3.4.2 Collection of Secondary Data Secondary data was obtained from various documents and other written reports available from different places and main information centers, where different materials were accessed include libraries at University of Dar es Salaam and High court. However, most information was available at the TRAT offices through a perusal on Tribunal case files, case registers, law reports, unreported cases, statutes, journal articles, legal sector reports and various circulars. Textbooks and websites were also very resourceful in providing useful information in the course of writing this research.

3.5 DATA ANALYSIS & INTERPRETATION Both qualitative and quantitative techniques were used. This is because of the nature of the data and information that obtained during the research. Quantitative data analysis was used to describe the data in the form of numerical values accompanied by charts, tables, and percentages. The responses were summarized and tabulated and percentages were computed by using MS Excel software package to establish relationship of various variables. Finally the researcher will reveal the internal validity, reliability and objectivity of the research conducted. On the other hand qualitative means was employed to describe information that is not of numerical nature.
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CHAPTER FOUR AN OVERVIEW OF THE TAX REVENUE APPEALS TRIBUNAL (TRAT) AND THE CASE SETTLEMENT PROCEDURE.

4. INTRODUCTION The intension of the researcher was to find out the causes for inadequate use ADR in tax disputes settlements where Tax Revenue Appeals Tribunal was a case study. It became meaning less to discuss the tax disputes resolution without having a clue of what Tax Tribunal is, this is because TRAT is the only institution in Tanzania which has the power to entertain tax disputes with an appellate jurisdiction same as High Court.

4.1 BACKGROUND 4.1.1 The history before 2000 Prior to the establishment of the New Unified Tax Appeals Machinery, there was the National Tax Appeals Board, which had jurisdiction to hear and determine only Income Tax Appeals arising from the decisions of the Commissioner of Income Tax. After that, the aggrieved party had a room to appeal to the High court and finally to the Court of Appeal of Tanzania. 4.1.2 Establishment of the unified tax appeals system Due to the fact that tax cases are very sensitive and require special attention as tax being the main source of income or revenue in our country, and that following the tax appealing system in that time, tax cases were taking longer in determination process hence either the government was loosing the income or tax payers was loosing their access to justice as the saying goes justice delayed is justice denied.

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So in year 2000, the Government decided to establish Unified Tax Appeals machinery under which tax disputes arising from all Revenue laws administered by Tanzania Revenue Authority (TRA) have to be lodged in the same appellate authority. In order to implement the policy of unified Tax Appeal machinery the Parliament enacted the Tax Revenue Appeals Act, Cap 408 [RE 2006], which establishes Tax Revenue Appeals Board and Tax Revenue Appeals Tribunal. These Tax Revenue Appeals Board (TRAB) and Tax Revenue Appeals Tribunal (TRAT) are quasi-judicial institutions, established under Sections 4 and 8 of the Tax Revenue Appeals Act, Cap 408 [RE 2006] respectively. Hierarchically TRAB is jurisdictionally equivalent to Resident magistrate court and TRAB is jurisdictionally equivalent to High Court.

4.2 AN OVERVIEW OF TRAT 4.2.1 Objective The core objective of establishing the Tax Revenue Appeals Tribunal is that of a speedy, efficient, effective and impartial resolution of tax appeals arising from decision of the Tax Revenue Appeals Board. 4.2.2 Function of the Tribunal The functions of Tax Revenue Appeals Tribunal are as follows:a. To hear and determine, tax appeals arising from decision of the Tax Revenue Appeals Board as provided for by Section 11 of the Tax Revenue Appeals Act, Cap 408 [R.E 2006]. b. To supervise Tax Revenue Appeals Board in the exercise of its powers under Tax Revenue Appeals Act, Cap 408 [RE 2006] c. Giving advice to parties to tax disputes on procedures of appealing to the Tribunal.

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d. To provide public awareness on Tax Revenue Appeals Act and other related tax laws.

4.3 DISPUTE RESOLUTION MECHANISM 4.3.1 Appeal procedure (a) Start of the Appeal The appeals start at TRAB after the tax payer being aggrieved by the decision of the Commissioner General, TRAB determine the case and give out its decision. Any one who is not satisfied with the decision of the Board lodges an appeal to TRAT. A person who wishes to appeal to the Tribunal shall issue a written notice of intention to appeal within fourteen days from the day of the decision of Board. The said notice shall state whether the intended appeal is against the whole decision or part of the decision of the Board. A notice of intention to appeal shall be made in the Form TRT .1 and shall be signed by or on behalf of the appellant. Where the Registrar has received a notice of intention to appeal he shall endorse on it the date on which it was received and register all particulars. An appeal to the Tribunal shall be instituted by lodging a statement of appeal within 30 days from the date when the decision of the Board was delivered. Every appeal shall be made in Form TRT .2. Upon receipt of appeal, the Registrar shall endorse on it the date on which he received it. The appellant shall pay the appropriate amount of fees when instituting an appeal to the Tribunal. (b). Fees Payable A person filing an appeal is required to pay non refundable fee of Tshs. 10,000 upon lodging notice of intention to appeal, Tshs. 100,000/= upon lodging statement of appeal, Tshs. 20,000/= for preparation of records of appeal, Tshs. 30,000/= for

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application for extension of time to appeal, Tshs. 20,000/= for application for execution of a decree or order. (c) Important documents for the appealing procedure
A person who institutes an appeal to the Tribunal shall attach the following documents: 1.A Certified copy of the proceedings of the Board. 2.A Certified copy of the decision of the Board. 3.A copy of the decision of the Commissioner General which gave rise to Board. 4.A copy of the notice of intention to appeal to the Tribunal. 5.Evidence of payment of appropriate fees. appeal to the

(d) The Composition of the Tribunal

The composition of the Tribunal is made up of a Chairperson, two Vice Chairperson one of whom from Tanzania Zanzibar and four members. The quorum in any meeting is made up of the Chairperson or Vice Chairperson sitting with two members. The Tribunal has a Registrar who handles all administrative matters of the Tribunal. The Registrar receives and registers appeals and applications. The Registrar also does taxation of bill of costs.

(e) Missing of the appeal time If one misses the deadline to appeal to the Tribunal within stipulated time, may apply to the Tribunal for extension of time within which to file an appeal. However, the Tribunal may extend the time if it is satisfied that the failure by a party to give notice of appeal, lodge an appeal or to effect service to the opposite party was occasioned by absence from the United Republic, sickness or other reasonable cause. (f) Procedure to follow after the decision of the Tribunal After the case being determined by TRAT and a party is dissatisfied with a decision of the Tribunal he may appeal to the Court of Appeal of Tanzania being the last appellate court in the court system of our country, within fourteen days from the date the decision of the

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Tribunal was delivered. The appellant shall pay Tshs. 1,500/= being a fee for notice of intention to appeal.

4.3.2 Diagram to show tax appeal resolution machinery and its hierarchy Figure I; tax appeal resolution machinery and its hierarchy from 2000 to date

COURT OF APPEAL OF TANZANIA

TAX REVENUE APPEALS TRIBUNAL

TAX REVENUE APPEALS BOARD

FINAL DECISION OF THE COMMISSIONER GENERAL Source: Researcher in the field, 2010

4.3.3 Cases registered and decided since establishment As stated earlier that TRAT was established by the Act of Parliament of 2000, Cap 408, but it became operationally in 2002. Since then the Tribunal has registered, heard and determined the appeals and applications as follow;

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Table I; Summary of the cases registered since 2002 Number of Appeals Registered 10 10 7 13 38 20 7 15 21 141 Number of Application Registered 3 8 7 18 33 30 11 9 8 127 13 18 14 31 71 50 18 24 29 268 Total

Year

2002 2003 2004 2005 2006 2007 2008 2009 2010 TOTAL Source: TRAT register

4.3.4 Evaluation of the methods used in deciding those cases As a matter of procedure, after the case being filled to Tribunals registry, it has to be heard hence the decision has to be made. Regularly cases went for full hearing as it was started by section 18(1) of the TRAA, Cap 408 R.E of 2006 which states that: 18(1) Proceedings of the Board and Tribunal shall be of judicial nature and shall be conducted on such occasions and at places as the chairman may direct.

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However, Tribunal is also powered to use ADR which includes mediation, arbitration, and conciliation in dispute settlement procedure. This power is provided under section 17(1) of TRAA, Cap 408 R.E of 2006 which states as follows: 17(1) The Board and the Tribunal shall respectively have the power (c) (d) To resolve any complaint or appeal by mediation, conciliation or arbitration The table below represents the summary of the procedure used in dealing with the registered cases. Table 2; Methods used to determine the registered cases Number of cases registered 268 Percentage (%) Number of cases withdrawn Number of cases went for full hearing Number of cases settled between the parties

Source: TRAT register

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CHAPTER FIVE RESEARCH FINDINGS AND DATA ANALYSIS

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CHAPTER SIX SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATIONS

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BIBLIOGRAPHY Adam, J & Kamuzara, R. (2008) Research Methods for Business and Social Studies. Morogoro, Mzumbe Book Project Banner, D.K (1995) Conflict Resolution: A Recontextualization Leadership & Organization Development Journal 16(1), 31-34 Brooker, P (2009) Criteria for the appropriate use of mediation in construction disputes International Journal of Law in the Built of Environment 1(1), 82 97 Ezeluke, I. & Hoare J. D. (1998) The need for education in alternative dispute resolution (ADR) in the construction industry Engineering, Construction and Architectural Management 5(2), 144 - 149 Gahr, R., & Mosca J. B. & Sarsa, S., (1995) Conflict Resolution and Mediation .Leadership & Organization Development Journal 16(8), 37-39 Ilter, D. & Dikbas, A. (2009) An analysis of the key challenges to the widespread use of mediation in the Turkish construction industry International Journal of Law in the Built Environment 1(2), 143-155 Merricks, W (2007) The financial Ombudsman Service: not just an alternative to court Journal of Financial Regulation and Compliance 15(2), 135 142 Osland, A & Osland, S J. (2007) Aracruz Celulose: Best practices icon but still at risk International Journal and Manpower 28(5), 435 450 Richardson, J (1995) Avoidance as an active mode of conflict resolution Team Performance Management an International Journal 1(4) Sigh, R (1995) Dispute resolution in Britain: contemporary trends International Journal of Manpower 16(9), 42-52 Vlassenko, I (2001) Evaluation of the efficiency and fairness of British, French and Swedish property tax systems Property Management 19(5), 384 416
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APPENDICES

25