The legal position of taxpayers in Tanzania: A Comparative Study of the tax System of Tanzania and The United Kingdom on The Promotion of Taxpayers Rights Especially with Respect to Legal Persons Subjected To Corporate Income Tax

Abstract

The study reviews the legal position of taxpayers subject to corporate income tax in Tanzania and the United Kingdom. The study compares the tax systems of both countries especially on the promotion of corporate taxpayers’ rights. The study finds that Tanzania needs to do a lot on tax rules and tax practices concerning corporate taxpayers’ rights when compared with the United Kingdom. This conclusion is drawn after examining how corporate taxpayers' rights are promoted when tax officers execute their duties in both countries. The thesis also reviews the influence of regional integration on domestic law, specifically on the promotion of corporate taxpayers’ rights. It is concluded that regional integration has substantial influence on taxpayers' rights in the United Kingdom. This conclusion is drawn due the influence of the European Court of Human Rights and the European Union on the domestic law of the United Kingdom. However in Africa, the influence of regional integration on domestic law is minimal. Taking Tanzania as an example, this study finds that the rule of law in African countries is the result of domestic and international initiatives. With respect to domestic initiatives domestic scholars, activists and politicians have great influence on the law and on administrative practices of African countries. As far as international initiatives are concerned there is a considerable influence of donor countries on the rule of law in African countries. The last part of the dissertation reviews how corporate taxpayers' rights are influenced by recent developments with respect to measures against base erosion and profit shifting for corporate taxpayers. It is observed that introducing these measures, as suggested by the OECD, is a crucial step towards a fairer tax system. However, some of these measures expose corporate taxpayers' rights to a great risk of being infringed, especially the right of confidentiality. The OECD has not sufficiently dealt with corporate taxpayers' rights to confidentiality on the cross-border exchange of information. Rules governing confidentiality are largely left in the hands of the domestic lawmakers of countries that exchange information on the basis of bilateral treaties between them.