University of Dar es Salaam School of Law

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Browsing University of Dar es Salaam School of Law by Subject "2004"

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    Corporate income taxation under the income tax act, 2004: challenges over taxation of companies in Tanzania
    (University of Dar es salaam, 2012) Mrosso, Jimmy Medard
    This study analyses theoretical and practical aspects on Corporate Income Tax under Income Tax Act, 2004 with specific emphasis on taxation of limited liability companies. Though, it is clear that the Act has been so well crafted to accommodate all types of persons instead of having a separate Act dealing with corporate tax only, this study identifies only those areas which in accordance to the researcher’s best judgment, present challenges to taxation of companies. The study is also intended to inspire other researchers to proceed with further researches on other areas they will find challenging as well. Chapter one of the study involved library research so as to lay down the theoretical framework, whereby some relevant materials were obtained mostly from books, journals, articles and the internet. Chapter two has generally corporate tax concepts which need to be expounded for a reader to understand the analyses done in the subsequent chapters. Concepts like the language of the Act under taxation of companies, and what are the important features to be taken into account in determining corporation tax have been discussed in details. Procedural matters also emerge in this chapter. However, sometimes it was difficult not to include in this chapter some data from field research, especially where a need arose that required data to hammer in certain points. Chapter three covers a detailed study and analysis on the flat rate of corporate tax and some other aspects like ability to pay theory of taxation; while chapter four pinpoints challenges facing taxation of companies under the Income Tax Act, 2004. It should be noted that though challenges have been discussed in detail under this chapter, other chapters have also successfully managed to expose other challenges not dealt with in chapter four e.g. chapter three. Field research made it possible availability of relevant information gathered from various persons and institutions. Collection of data was done mainly through oral interview and questionnaire methods. Oral and telephone interviews were preferred to avoid delays by the respondents in filling in the questionnaires. In the field research, it was discovered that though the rate of corporate tax is flat applied to companies of different levels of income, under declaration of total income is still an identifiable threat to revenue collection. Under chapter five the study concludes by explaining the substance behind some recommendations basing on the data received from field research and the researcher’s best judgment.