Medical/Health Care

TANZANIAN SCHOOL LOSES BID TO BE SPARED PAYING 4.0 BILLION SHILLINGS TAX

DAR-ES-SALAAM-- The Court of Appeal, Tanzania's highest court, has dismissed with costs the appeal challenging payments of more tha four billion shillings (about 1.75 million US dollars) tax to the Tanzania Revenue Authority (TRA) which had been lodged by a local company which manages the affairs of the St Jude School.

A panel led by Chief Justice Ibrahim Juma and including Justices Augustine Mwarija and Richard Mziray ruled against the academic institution after holding that all grounds of appeal presented to fault the findings of the Tax Revenue Appeals Board and that of the Tax Revenue Appeals Tribunal lacked merit.

In the appeal, the main contention was that the appellant company was not carrying out its business to derive profit and was a company limited registered by guarantee; not having a share capital and providing free education to 96 per cent of the enrolled students through donations and sponsorships.

However, the justices of the appeals court agreed with the tribunal's findings that free education provided by the appellant was paid by third parties and so the surplus shown in his bank statement was a profit derived from business.

The same is therefore chargeable to tax. In the final analysis, we do not find merit in the appeal. The same is hereby dismissed with costs, they declared in their judgment delivered in the Tanzanian capital, Dodoma, recently.

Source: NAM NEWS NETWORK