Legal and practical challenges facing corporate taxation in relation to electronic commercial transactions in Tanzania: A case study of Dar-es-salaam
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Date
2019
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Publisher
Mzumbe University
Abstract
This study generally aimed at making a critical analysis on the effectiveness of the law and practice on the taxation of corporations under electronic commercial transactions in Tanzania. The study specifically intended to explore the activities undertaken by the companies via the electronic transactions in the light of tax laws in Tanzania, examine the legal framework on taxation of electronic commercial transactions in Tanzania and last but not least to examine the practice vis-à-vis the taxation of electronic commercial transactions in Tanzania. The study employed various research methodologies. The study based on case study design. It employed purposive sampling technique and the study used both primary and secondary data. Collection of data was done through questionnaire, interviews and library research. The study observed a number of issues with regard to the guiding research questions to the following effect: First, the activities undertaken by the companies via the electronic transactions satisfy legal requirements for being taxed in Tanzania. Second, there are number of legal challenges facing taxation of electronic transactions made by the Companies in Tanzania. The challenges include but not limited to jurisdictional challenges, determination of corporation residence under e-commerce, challenges on the source rule on taxation e-commerce by corporations, challenges on permanent establishment criteria on taxation of e-commerce and challenges on income characterisation under ecommerce by the corporations. Last though not least is the existence of some practical challenges vis-à-vis the taxation of electronic commercial transactions in Tanzania. The practical challenges revealed were poor enforcement mechanism and shortage of competent Tax Administration Staff. It is from this background that the conclusion of the study is subsequently given.
Description
A dissertation submitted in partial fulfillment of the requirements for an award of the Degree of Master of Laws in Commercial Law (LL.M-CL) of Mzumbe University.
Keywords
tax corporations, electronic commercial transactions, tax administration, income tax Act
Citation
Chicago