Tra Past Report

8/8/2019 Tra Past Report

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Mbwile Patrick R | Practical Training Report 1

CHAPTER 1: INTRODUCTION

Before the establishment of TRA in the year 1996, tax administration functions were

being administered by the three independent tax departments under the Ministry ofFinance. During the 1996/97, the Government fiscal policy was set to enhance

revenue collection and improve expenditure management through expenditure control

measures aiming at restraining the fiscal deficit. On the revenue side the measures

that were implemented included the strengthening of tax administration through the

establishment of the Tanzania Revenue Authority (TRA).

The Tanzania Revenue Authority Act, 1995 established the Authority under the

general supervision of the Minister for Finance and started operations in July 1996.

The Authority is a semi-autonomous agency of the Government, responsible for theadministration of the Central Government taxes as well as several non-tax revenues.

TRA Mbeya Regional Office was also established in the same year. The revenue

departments at the Ministry of Finance had their office in a building in Mbeya which

is now the headquarters of TRA at the region. TRA Mbeya administers all district

offices which are Mbozi, Kyela, Mbarali, Chunya, Tukuyu, Ileje and Kyela. Two

boarder offices are also under TRA Mbeya office; these are Tunduma and Kasumulu

boarders.

As a result of the establishment of TRA and the proper implementation of strategic

plans, voluntary tax compliance is growing and performance in Government revenue

collection has been improving each year.

!"

TRA is a government owned organisation whose main roles are to collect revenue

and advice the government on fiscal and taxation policy. Tax is the main source of

Government revenue, a need to cost-effectively and efficiently administer the

assessment, collection and accounting for all the central government tax revenue led

to the establishment of TRA. It also has a responsibility to administer all the revenue

laws of the country, thirteen laws in total. TRA is divided into departments which

function together to ensure that government revenue is collected and it is advised on

fiscal policy.

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All functions of TRA are managed by the various departments of TRA. These

departments are grouped into two, revenue departments and supporting departments.

The following departments function at the Mbeya Regional Office;


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Domestic Revenue Department; collects revenue from domestic sources. Alltaxes provided they come from domestic sources are dealt with here.

Customs and Excise Department; collects international revenue through itstaxes which are the Import Duty, Excise Duty on Imports, VAT on Imports,

Fuel Levy (Importation of petroleum) Tax Investigations Department; this department deals with investigation of tax

evasion and avoidance. Once investigations are complete, payment of

prescribed tax and/or penalty then follows.

Large taxpayers department only functions at the head office Dar es Salaam. It deals

with taxpayers with turnover exceeding one billion Tanzanian shillings. Such

taxpayers in Mbeya are transferred to headquarters for tax purposes.

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Finance Department;this is a core department which collects, account for andreport the tax revenues. It also deals with expenditure management.

Human Resources and Administration Department; deals with generaladministration of TRA and enhancing positive working environment and

value to employees.

Information Systems Department; this department implements and manageICT systems so that they are business-led and not technology driven.

Legal Service Department; provides in-house services by handling all casesfiled by or against the Authority, coordinating matters relating to the Board,

administering tax exemptions and reviewing the laws with a view to

recommend amendments to such laws.

Taxpayer Services and Education Department; provide the public with thelatest tax information, helping to ensure that tax compliance is as effortless aspossible and that nobody falls foul of the tax laws through negligence

Internal Audit department and Research, Policy and Planning department function

from the head office in Dar es Salaam. Officials from the headquarters visit Mbeya

regularly to accomplish their duties.

(#+""

Major services of Tanzania Revenue Authority are shaped by the changing

government policies. The main role of TRA still remains to collect the government

revenue and advice it on the fiscal policy of the country. TRA is a service giving

government entity with its primary clients being the government, taxpayers and thegeneral public. Its services include;

Assessing, collecting and accounting for all Central Government Revenue, Administer effectively and efficiently all the revenue laws of the Central

Government,

Advise the Government on all matters related to fiscal policy, Promote voluntary tax compliance,


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Improve the quality of services to the taxpayers, Counteract fraud and other forms of tax evasion, Produce trade statistics and publications.

Other services to TRA clients depend on the needs of such clients, they may include

investment friendly tax administration, education to taxpayers, information to

pressure groups, publications, etc.

,"-"

TRA is under the direction and control of a Board of Directors, which is headed by a

Chairman who is appointed by the President of the United Republic of Tanzania. Theboard is responsible for the formulation and implementation of the policies of the

Tanzania Revenue Authority. It is also responsible for advising the Minister for

Finance on the fiscal policy of the country and tax matters in particular. The Board

consists of ten members including the Chairman. Five members are ex-officio, that

is, they sit on the Board by virtue of their positions. These are:

(i) Permanent Secretary - Ministry of Finance (Union Government)(ii) Principal Secretary - Ministry of Finance (Zanzibar Government)(iii) Governor of the Bank of Tanzania.(iv) Permanent Secretary- Presidents Office Planning and Privatization.(v) Commissioner General of TRA.

In addition to the five ex-officio members, the Minister for Finance also appoints

from the public other members to the Board on the basis of their professional

knowledge, experience and competence in the relevant areas of finance, commerce or

economics. The tenure of office for the members is three years and the non-ex-

officio members can be re-appointed only once.

The Commissioner General is the Chief Executive of the Authority. He is

responsible for the day-to-day operations of the Authority subject to the general

supervision and control of the Board. The Commissioner General is assisted by a

Deputy Commissioner General and heads of departments in performing his duties.

Some Heads of Departments are in turn assisted by Deputy Commissioners /

Directors at the head office level.

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TRA Mbeya Office is headed by the Regional Manager who is responsible for

overseeing all activities at the region and supervision of TRA employees. The

Regional Manager is assisted by three assistant regional managers who areresponsible to manage the revenue departments. The assistant managers are the

Assistant Regional Manager Audit, Assistant Regional Manager Debt

Management and Assistant Regional Manager Customs and Excise. Under their

supervision are other heads of departments who are the Regional Accountant,

Regional Supplies Officer and the Regional Human Resources Officer.

Sections are headed by heads of sections who report to Assistant Regional Managers

functionally but to Regional Manager administratively. These include, the Head, Debt


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Management Section, Head, Audit Section, Head, Legal Services Department and

other heads of small sections within departments.

0"1""


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#-1""

2 #!-"

The total number of TRA employees in Tanzania is about 2000. Among these, only

83 employees are working at the Mbeya Regional Office. 42 employees are working

at the domestic revenue department, 16 at the customs and exercise department, 10 at

the tax investigation department, 9 at the administration office and the rest 6

employees are working at the accounts office of the finance department. The

employee turnover from Mbeya to elsewhere is about 0.08% while from elsewhere to

Mbeya is about 0.09% which are all quite small rates.

A recent audit conducted at TRA by external auditors showed a deficit of about 3000

employees. Measures have started being taken and new employees are being recruitedevery year. The current success of TRA is attributed by the few employees who

maintained the core values as indicated by the TRAs Second Corporate Plan


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Core Values for TRA employees:

AreBUSINESS-ORIENTED andPROFESSIONAL in appearance and approach Are FAIR and ACCOUNTABLE for the decisions they make in their areas of

responsibility

ArePROMPTin the delivery of services and areACCESSIBLE Treat taxpayers, colleagues and stakeholders withDIGNITYandRESPECT AreHONESTand haveINTEGRITYin their dealings Are COMMITTED and MOTIVATED to the achievement of TRA goals and

objectives

Are COMPETENT in the delivery of high quality services

2-""

The core values state how employees are expected to relate to their clients, colleagues

and the TRA itself, and how they will accomplish their work in the pursuit of

carrying out the mission and achieving the vision of the Authority

3"

TRA is a professional organization dealing with the collection of taxation. The main

activities of TRA are therefore concerned with administering various tax laws of the

country and to advice the government on the fiscal policy. The following list of TRA

functions explains the kind of activities they are involved with;

3%/))4%)'.

Assess, collect and account for all Central Government Revenue Administer effectively and efficiently all the revenue laws of the Central

Government

Advise the Government on all matters related to fiscal policy Promote voluntary tax compliance Improve the quality of services to the taxpayers Counteract fraud and other forms of tax evasion Produce trade statistics and publications

Basically, TRAs main role is to administer various tax related laws. TRA activities

include checking compliance to such laws. These laws or sections within some laws

have revenue related components which should be under TRAs concern. Such laws

which are administered by TRA through its activities include;


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1. The Income Tax Act, 20042. The Value Added Tax Act, 19973. The East African Community Customs Management Act, 20044. The Stamp Duty Act, 19725. The Road and Fuel Toll Act, 19856. The Airport Service Charges Act, 19927. The Motor vehicle (Tax Registration and Transfer) Act, 19728. The Port Service Charges Act, 19739. The Vocational Education and Training Act, 199410.The Foreign Commercial Vehicles Licensing Act, 197011.The Tanzania Revenue Authority Act12.The Hotels Act13.The Tax Revenue Appeals Act14.The Gaming Act15.The Excise Tariff Ordinance (Cap 332),16.The Land Act, 199917.The Pools and Lotteries Act, 1967"

5---The use of Information and Communication Technology ICT facilities has a great

potential to support development and is a key contributor to productivity growth in an

organization. Employees are vital players in changing work practices and contribute

to the growth of the Authority by utilising fully the available ICT facilities. TRA uses

software such as ASYCUDA++, CMVRS, Motor Vehicle Registration, VIPS, ITAX

and TIN. These have shown how ICT can be used to contribute to the first strategic

goal of the Second Corporate Plan, which is to increase revenue collection in a cost

effective way.

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The most celebrated success story was the implementation of the Motor Vehicle

Registration System to replace the old manual system. The re-registration of motor

vehicles required a centralised system with connectivity from all registration centres

to prevent fictitious registrations.

Another successful story was the provision of seamless communication network for

major revenue centres. The network, which is the backbone for all revenue systems

such as ASYCUDA++, CMVRS, TIN and ITAX, has enabled communication and

electronic data interchange for Customs outposts such as Tunduma and Kasumulu,

also Namanga in Arusha Tax Region.

6-"

In the course of doing its official business TRA interacts with people and institutions

that have interest and stake in the operations of the Authority. These are the

stakeholders of TRA and can be classified into two main categories namely internal

and external clients.


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6'

The TRA community, which is composed of mainly employees, form one of the very

important resources of the Authority and their contribution to the success of TRA is

recognized. TRA management and the Board support employees and in return,

employees are expected to demonstrate their ability to live up to the core values for

staff.

6(7'

These are the individuals and bodies outside TRA whose relationship with the

Authority is vital and the basis of existence. These clients include the following:

Taxpayers, Tanzanian citizenry, the business community, the donor community, the

Government, NGOs and other pressure groups. They are both the means and ends for

which TRA was established. TRA anticipates increased demand for better services

from its external clients and employees are expected to spare no effort to meet their

expectations.

8"

Strategic direction of the Tanzania Revenue Authority is being guided by the

corporate plans. Currently TRA is working to implement its Second Corporate Plan

which is to end in this year, 2008. Development of the second Corporate Plan for

Tanzania Revenue Authority (TRA) follows expiration of the preceding plan and the

expressed need by the Government to have a Second Generation of reforms to make

the Authority investor and taxpayer friendly and to collect revenue to capacity levels.

The first plan was developed and started to be implemented in 1998/9 fiscal year up

to the end of 2002/3 to carter for development needs of the Authority during the

initial period of its evolution. The main focus of the first plan was institutional and

capacity building.

8-"

The current plan aims at strengthening operational efficiency and effectiveness; and

boost revenue collection to a more generally acceptable level commensurate with

international benchmarks. This second Corporate Plan for the TRA spells out the

Mission, Vision, Strategic Goals, and Objectives to realize the envisaged vision. It is

a guide that the TRA will follow from the fiscal year 2003/4 to 2007/8.

89""

The vision of the Tanzania Revenue Authority is to buildA Modern Tax Administration

8(9"#""

The Mission spells out what TRA is in business to do and how is it going to do that

business. In other words it encapsulates the purpose of being of the Authority and

contribution of its employees in building the national economy.


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To be an effective and efficient tax administration which promotes voluntary tax

compliance by providing high quality customer service with fairness and

integrity through competent and motivated staff

TRA is committed and dedicated to becomea modern tax administrationby the year

2008. A modernised tax administration is considered as one that has a strong

enforcement capacity delivered by highly qualified, motivated and committed staff;

has an integrated approach to the administration of taxes; is computerised; uses

modern practices and processes; and enjoys high levels of tax compliance by creating

a taxpayer friendly environment.

8,"-"+"

The strategic goals have been formulated to respond to the needs of TRAs business

and its clientele. They are derivatives of the Mission and Vision and are craved

towards realisation of tangible results.

The following are the strategic goals and objectives to be realised in the course of

implementing the Second Corporate Plan.

a) To increase revenue collection in a cost effective way Broaden the tax base Improve the enforcement of tax laws Monitor and control cost of revenue collection. Modernise processes and systemsb) To integrate TRA operations Strengthen the Large Taxpayers Department Integrate Tax Operations Strengthen Customs Administration Integrate Tax and Customs systemsc) To provide high quality and responsive customer service Enhance the level of tax knowledge to taxpayers Improve customer serviced) To promote tax compliance through fair, equitable and transparent

application of tax laws

To provide education to taxpayers Enhance administration of the tax laws Treat taxpayers fairly and in a consistent and transparent waye) To improve staff competence, motivation, integrity and accountability


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Improve skills and level of professionalism Upgrade the level of staff benefits and working environment Strengthen management controls


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CHAPTER 2: ACTIVITIES PERFORMED

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Practical training took place at the Tanzania Revenue Authority Mbeya Office.

Within TRA the departments involved were the Tax Audit Section and later AccountsOffice and finished at the Debt Management Section.

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At the end of PT, three sections in total were involved for training. Audit Section

tasks and duties had a research/problem solving perspective. Those at the Accounts

Office were mostly routine with few non-routine cases. The Debt Management

Section had a mixture of routine and problem solving activities.

((:"(1st

to 4th

Week)

Audit is a routine activity of the TRA under the self-assessment system. It promotes

voluntary compliance with tax laws and regulations due to the customers fear of

being selected for an audit work. A taxpayer can be selected for audit at any time.

Being selected for an audit does not indicate that an offence has been committed.

A tax audit is an examination of a taxpayers business accounts and financial affairs

to ascertain that tax reported and paid are correct and are in compliance with tax laws

and regulations. TRA carries two types of tax audit, namely Desk Audit and Field

Audit.

((;%


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iii. Examination of third party records, normally arising from audit orinvestigations of other taxpayers

iv. Previous records on return forms compliancev. Selection based on specific industriesvi. Selection based on specific issues peculiar to a particular group of tax

taxpayers.

vii. Selection based on locality.Audit Outcome

i. Payment of taxAn audit is conducted to ensure compliance to tax laws. An audited taxpayer may

now pay tax as indicated by the audit process. Taxpayers are not allowed to pay audit

officers but must be made to the Commissioner through an appointed bank or office.

Such tax in Mbeya is paid through NBC, CRDB, NMB and Stanbic Bank.

ii. PenaltyIf it is discovered during an audit that there has been an understatement or omission

of tax, a penalty will be imposed according to the law being applied. Penalty shall

also be imposed for aiding or abetting another person to commit an offence of

omission or making misleading statement as provided under section 102 of the

Income Tax Act, 2004.

Duties performed at the Audit Section

The main task/duty given by the Audit officers was mainly the examination of

records part. Practical training period was only enough to examine records of only

four clients in total. This was during a one month stay at the section.

1st

Client

This client was chosen for tax audit to determine whether he is compliant to various

tax laws especially the income tax act 2004 and the value added tax act 1997.

Normally an officer can not audit all financial sectors of the taxpayer due to time

constraint; instead a highly risk area was chosen for tax audit. For this customer, sales

records were suspicious and hence were chosen for auditing. Sales records are used in

the calculation of profit under the income tax act, 2004 and determining the amount

of VAT payable under VAT act, 1997.

A daily sales book was ordered and it was checked for any missing receipts and thenadded the total amount appearing in the receipts for comparison with the amount

submitted. It was found that this taxpayer had a lot of missing receipts and the total

amount did not correspond with the one he submitted before. A letter was then

written to call for the missing documents.


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2nd

Client

In the same way as the first client, this client was also ordered to submit his sales

information. Sales records were checked and the amount appearing in the records was

added up to see whether it corresponds with the amount submitted. The total amount

found did not match with the amount he submitted for tax revenue. Again the

taxpayer had one entire receipts book missing and he had a turnover calling for VATcompliance. A letter of enquiry was sent to him to call for the records missing and

necessary steps were made to call for VAT compliance.

3rd

Client

Sales record keeping was seen as the leading tax avoidance area. Likewise, this

taxpayer was asked to submit his sales records for examination. All these clients had

the same tendency of trying to avoid tax through underestimation of sales figure.

After a thorough examination of his records the same problem arose, some of the

sales receipts were missing and the amount submitted was not correct. However just

knowing a customer records are missing is not enough criteria for an offence, the

customer has to be given a chance for explanation. A letter was also written to thiscustomer to see whether non compliance was out of fraud.

4th

Client

This was a hotel. Field audit understood that the risky area for this customer was the

number of rooms used being reported daily. Instead of calling for sales receipts, cards

signed by customers were called for. They were checked and found out that some of

the days nothing was reported and only few rooms were being reported as used for

accommodation. This taxpayer also had his records showing that all the customers

slept at his hotel for the price of a single day accommodation. The total amount of

revenue found in the cards differed from the one recorded at his sales receipts book.

A letter was written to the client to ask for explanation.

((("(5th

to 6th

Week)

The accounts office is a section under the finance department of TRA. The role of this

section is to manage the finance function of the region ensuring that revenue

collections and expenditure are accounted for accurately and timely and in

accordance with the accounting policies and procedures of the TRA and International

Financial Reporting Standard (IFRS). It deals with all matters concerning finances

such as salaries, allowances and accounting for revenue collected from revenue

departments.

(((//)%*4)'7'$%')%*:.

Accounting for tax revenue is a daily activity at the Accounts Office. The task here

was to make sure that all transactions are being accurately recorded. This is done

through a system known as ITAX. This software is used to account for all tax revenue

nationwide, all reports and tax information can then be retrieved from the system

when needed.


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Information that had to be posted into ITAX included bank pay-in slips and bank

statements. All bank pay-in slips used to deposit money into the various tax revenue

accounts during the day were posted and then reconciled with the bank statements.

ITAX processes the information into different outputs such as reports and general

record keeping.

((((!'&'*


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((,##"(7th

to 8th

Week)

This section works under the domestic revenue department and it was created so as to

make sure all tax due is paid by the customers. Other section like the audit section

will determine the amount of tax a customer is to pay and hand it over to the

personnel in the section for enforcement.

This section also deals with other matters such as new business registration, tax

assessment and management of employment taxes. The placement here was at the

new business registration section, assessment section and in the management of

employment taxes.

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At this section, the main task was to register new businesses for tax purposes.

Taxpayers came to the office seeking to register their business as the law requires

them to do. This is compulsory for every business person. Taxpayers were

interviewed and some forms were filled so as to collect their information.

A taxpayer was required to bring passport photos and house rent agreement for

assessing rental tax. The photos and information given were used to register the

business. After finishing at this section, the taxpayer had to go for TIN registration

within the same department where another person was in-charge. Thereafter a file

was opened for storing taxpayers information.

((,(7"/)

This section dealt with assessing taxpayers for the amount of tax they are supposed to

pay. Preliminary assessment was done where judgement was out of description given

by the taxpayer during the interview. There were authorised staffs at this section whowere responsible for finalizing tax assessment. They did this by either further

interviewing the taxpayer or physically visiting taxpayers business place. Tax

determined by these personnel was final and the taxpayer was required to comply, in

case of non satisfaction the taxpayer was required to appeal through the regional

manager.

((,,!.)/


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Tanzanian shillings are eligible for VAT registration. This is another important tax

administered by TRA. Training at this section was short but the whole process was

followed up closely. The section had a responsibility of knowing all eligible

customers and making sure that they pay VAT according to the law and deregistration

of businesses either exempted or no longer qualifying for VAT payment.

((,3&).7"/)

This section is responsible for managing employment tax collections. The main duty

of the section is to receive employment tax return forms and check for correctness

and making sure tax due is paid timely. Any person qualifying for employment tax

payment is traced by this section. The employment taxes dealt with herein are the

skills and development levy (SDL), Pay as you earn tax (PAYE) and the Lump sum

tax. Any mistake found due to fraud, a penalty is awarded to the taxpayer concerned.

((,57'''"/)

This section deals with debt enforcement. All tax in arrears at the domestic revenue

department is dealt with by this section. This tax in arrears includes customers failingto pay tax as required and customers required to pay extra tax as determined by the

audit section. Personnel at this section are supposed to keep track of all TRA

taxpayers and make sure that all tax is paid at due dates. Enforcement includes

physically visiting the taxpayers for enquiries and checking that all tax laws are

accurately adhered to. Taxpayers will normally be reminded of the consequences they

are to face in case they fail to comply with the laws.

(,>#

Generally, the working environment at TRA is friendly and independent. All interns

got support from TRA employees as teamwork, cooperation and helping each other isthe main focus. Friendliness made employees and taxpayers more comfortable as it

easily welcome enquiries. The office arrangement of chairs and offices easily enabled

close relationships and easy advice from co-workers. Employees were free to apply

their skills independently and pass only cases beyond their work limit. However, the

Accounts Office works were fully supervised by the regional accountant and team

work was the best strategy of the office. This may be explained by the loads of works

found at the office and the high need for accuracy.

(2"">"!#The duties/tasks performed at TRA were very interesting. The most interesting works

were at the Accounts Office where application of class theory in accounting was usedby keeping TRA accounts in order and up to date. This section had a lot of works to

do due to the importance of keeping good accounts. They mostly constituted reports

which were to be submitted to authorities for Revenue and expenditure assessment.

Other duties were also interesting to some extent; auditing works required one to

judge the correctness of taxpayers records which made the process interesting. At

Debt Management Section, what were interesting are the interviews with taxpayers in

the process of registering their business.


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(3#""!#

Auditing works needed a lot of analytical and problem solving skills more than other

sections within TRA. This is because the works were challenging and a good audit

meant a lot of dedication to the clients records and careful use of skills. Taxpayers

normally cheat so as to pay less tax, it is the duty of an auditor to discover such errors

and judge whether they are out of fraud or mistakes.

Debt management required lots of creativity due to the uncertainty of most debts.

Choosing the proper method to use in collecting a debt, especially bad debts was the

most challenging part of duties at the section. Employees had to occasionally move

physically to taxpayers for recovering debts. This to some extent involves risks such

as corruption.

Accounts works needed a careful use of accounting skills to keep records correct and

updated. A lot of care was needed to keep accounts from errors and fraud. Due to the

importance of these works, reports were needed often to judge TRAs performance.

Accountants were required to be quick and accurate in doing their works.

(5!-#"

The support and friendly environment of TRA Mbeya made us comfortable and have

fewer problems. However the only problem faced was at the beginning of training

were a single section was offered for training regardless of the many departments

within TRA. The internal supervisor just offered the Audit section as the immediate

and final placement.

The continuous stay at the Tax Audit Section rose awareness of such a situation. For

the sake of widening PT training, the other departments were also seen as equally

important. Proper consultations with the authorities were made and eventually

management allowed and effected rotation. Therefore, at the end of training three

sections in total were involved. These were the Tax Audit Section under the Tax

Investigations Department, Debt Management Section of the Domestic Revenue

Department and the Accounts Office of the Finance Department.

As a recommendation out of this situation, FCM should be advised to make students

produce plans out of their knowledge of the organisation they are going to work with.

This plan should state the departments they are interested to work to. Practical

training coordinator should pass the plans ready for submission at the organisation on

arrival. This should be used in the coming PT trainings.

(6!-:!"2.7.1 Professionalism: before going for practical training it was expected that

interns would be treated as professionals and that the organisation is set to act

professionally and help employees build and develop their careers. As usual

government employees do not focus much on professionalism but rather on

mere performance of duties. TRA is quite different from other Government

institutions as management was seen to clearly focus on enforcing the pre-

stated core values for employees. However career development was not highly


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(82 /%%'

TRA is one of the organisations which have rich organisation cultures. One of the

most prominent practices is a compulsory act of men putting on neck ties and shaving

beads. The dress code was mostly dynamic and based on ones decision but with time

suits for both men and women became a common practice. It was also a culture at

TRA for a late coming employee to greet all fellow staff before continuing withduties. The manager and other top officials would normally visit employees and greet

them at least once in a week.

I learned that in whatever organisation one is, he/she has to adapt into the dress code

of the area and maintain the organisation culture as a whole. This adaptation shows

how smart an employee is and his/her readiness for change. TRA values its

employees from the time of interview by assessing the ability of such persons to

adapt to the organisation culture. I learned that culture specific requirements should

be known well before interviews.

(@ !">!The basic gap between theory and practice is that theory provides a general and wider

base of knowledge to prepare one for practice in his/her profession; where as practice

provides one with the specific skills and knowledge to effectively handle whatever it

is that he/she is doing as a professional. Because of this, theory will often equip one

with much more than he/she might need in effectively carrying out his job. This is

essential in helping one to have broader perspective and hence be able to critically

analyze issues with a wider and deeper approach.

Theory does not include such issues as human relations for instance, how to relate

with fellow employees. Attitudes are also difficult to explain in theory and hence they

are underestimated. Practice has it all in matters of conduct whereas theory is

equipped with skills that are important for analysis and comprehension. It is good that

subjects that teach about relations, communication skills, etc like CL 108 have some

practical components such as physically visiting organisations to help students

understand better.

Another gap between theory and practice is mainly about coping with the changing

organisation aspects such as technology. Normally technology changes faster than

theory would do. Organisations are quick to introduce new discoveries as compared

to theorys response to changes. Market operations also change fast and often as

compared to classroom teachings. Books should be updated at a rate that corresponds

to the changing business environments. At AC 204, no software use was taught, it

was good to visit TRA and see the lots of software they use to account for taxation asit is the current technology rather than the old manual system.

The current university curriculum provides another gap between theory and practice.

An example of this is the timing of important subjects that are to be applied during

practical training. Auditing and financial accounting for instance are important for

one to know before heading to practical training. Also subjects such as government

accounting should also be considered for inclusion in the curriculum as the

government is the key business regulator.


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(#!-#!"!"

TRA is the only institution which administers tax in Tanzania. This makes TRA a

competitive organisation. Challenging jobs, exposure and networking opportunities

which are good for developing ones career are numerous at TRA, this makes it an

interesting place work at.

I believe that the organisation would not hesitate to have me as an employee, for they

really appreciated the level of cooperation, interaction and hard work I displayed

throughout my time with them. However my placement was merely a branch which

has no authority to employ. TRA staff appreciated my work and only advised me to

apply for a job as soon as I finish my studies.

(-!

PT attachment to TRA was relevant for training and it was a rewarding experience.

One of the things benefited was knowledge. As it was my aspiration to go to TRA

and learn a lot about taxation system, TRA offered a good opportunity for this.

Knowledge of taxation may help me in my career in many ways whether I amemployed in a taxation agent or in my further studies such as CPA and Masters

Degree. The new things I learned are evidences of TRAs relevance.

TRA was also a good place for skills development. Theory itself is not enough, it has

to be accompanied with practice and TRA did this well. I had a good opportunity to

put into practice my AC 204 skills. This helped me to understand better the subject

and be competent in that field. Other skills include an opportunity to adapt into the

corporate environment and culture.


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CHAPTER 3: CONCLUSION

A practical training experience is very important for linking theory and practice. TRA

training that lasted for two months was an opportunity for putting into practice skills

both academic and personal. This has helped in shaping a professional person any

employer would prefer. Tanzania Revenue Authority as a government institutionoffered a kind of experience that would make competent to work with in many areas

both in public and private organisations.

Revenue collection, organisation culture, accounting, behaving in an organisation,

work experience, etc are the many things that TRA could offer for learning. A success

story of training at TRA is also attributed by the support received from TRA staff

which includes the challenging works they assigned. Generally, the works included

tax auditing, accounting and debt management.

As practical training is part of the third year B.Com programme under the Faculty of

Commerce and Management, it was itself important and compulsory for the course.

The practical training coordinator, Dr. Benjamin Mutagwaba, UDSM external

supervisor, Mr. Sanga and other FCM staff were also equally important in effecting

the training. For this case, regards goes to all people who have made it a success, this

includes TRA staff for their endorsement.

Career development is a necessity for any business student. TRA was a good place

for in advancing career. Networking, exposure and work experience from TRA have

all contributed in upgrading the most professional qualifications. Also while taking

further studies like CPA and Masters Degree, a lot of knowledge from TRA will be

employed, this ranges from knowledge of taxation to the knowledge of the

importance of such studies in career as seen at TRA.

The importance of practical training should not be underestimated by anyone. It

should be emphasized above most of other courses as FCM has done so far by giving

it a 6 unit value. Students in their side should recognize the essence of its importance.

At TRA it was always considered a good learning experience and an important

milestone in the career ladder.


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CHAPTER 4: RECOMMENDATIONS, REFERENCES AND APPENDICES

2 ##"

A lot of things were experienced as part of training at TRA. Some were absolutely

new while others were common. It is good that those areas that were not covered inclass should be included then so as to improve gaps between theory and practice.

Practical training placement process was generally good due to the good management

at the Office of The Practical Training Programme. However there are few things

seen as gaps which need some consideration. Listed below are the recommendations

concerning handling gaps in teaching theory and practice and those concerning the

placement process.

2 #!!"!

1. Regular visits to organisations; Some courses at the university should have acertain program for linking theory and practice. That is, business teaching

should be research based such that theory is well linked with the real situation

through regular visit to organisations. For example, AC 204 which teaches

taxation theory should include TRA visits. As seen at TRA, taxation is so

wide that it can be difficult for students to understand it in one semester. EC

courses should include cases from the Tanzanian context rather than how it is

done now.

A program that will enable students visit physically areas of practice like

TRA, will help them comprehend and grasp theory easily. Other subjects like

Accounting which teaches about tools which are used practically like balance

sheets, bank reconciliation, etc should be accompanied by vivid examples of

such tools.

2. Inclusion of software packages into syllabus; most of subjects being taughtat the university are based on manual operations contrary to the current level

of technology. All organisations nowadays have personalized software that

automates most of the routine activities. Software packages and computer

should be taught so as to prepare students to meet such programs in their work

setting. Popular packages are like MYOB, Tally, MS Excel, etc and

personalized software includes such software as the one I used at TRA i.e.

ITAX, ASYCUDA++, TIN, etc.

3. Early teaching of subjects relevant for Practical Training; TRA PTtraining partly included auditing works. Prior to going for practical training,auditing was not taught yet. This in some ways makes practical training in the

field of auditing illogical just because practice is being put where there is no

laying theory. FN 202 is an example of an important course which was taught

prior to going for PT. Some students applied it in advising management on

issues such as investments during weekly conferences. Financial Accounting

is another subject important for teaching prior to PT.


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4. Duration; Practical training duration should be extended from 4 weeks to 12weeks for comprehensive learning. The four weeks we spent were very

interesting but unfortunately not enough to learn all the organisation aspects

such as departments, culture and politics. Those who were lucky to rotate in

the organisation did not cover the whole organisation. Organisations will not

experience any reduction in the work load if students stay for a short time; at

least a long time will help make a significant change in the organisation. Along duration will also help organisation judge students performance for

employment consideration.

2( -!"!-#!""

1. Opening career centre at FCM; when it comes to practical training moststudents underestimate the importance of proper placements for their career.

The same thing happens to graduates, they need a lot of career information

after they complete their studies. Most popular Universities have such centres

already established; it is good that FCM considers establishing one. Such

centres should be responsible for securing practical training placements as

well as giving critical advice to students and graduates concerning career.This centre should have full time working staff.

2. Internship plans; The Office of the Practical Training Coordinator shouldmake sure students submit plans prior to going for PT. Such plans should

indicate departments within an organisation where the student is willing to

work. I suggest this because it has been a common situation that students

encounter in their practical training. They find themselves ending up in one

department contrary to their expectations. The same thing happened to me.

Such plans should be signed by PT Coordinator ready for submission to the

organisation management upon arrival.

3. Partnership with organisations; most of the organisations students apply toare reluctant when it comes to considering students for training. FCM should

establish well defined partnerships with organisations for easing placement

process. The government should be asked to provide permanent places for

training in its institutions. Private enterprises should be asked for partnership

with the University in matters concerning PT. The future of such undertaking

is easing students troubles they face when looking for placements.

In the same manner, PT placement should be the sole responsibility of The

Office of The Practical Training Coordinator. By use of interviews or

academic performances, all students should be allocated places which were

found beforehand by the office. This will add meaning to the officesexistence and help students smoothly secure placements.


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2("

Tanzania Revenue Authority website www.tra.go.tz

TRA, (2008), The Employers Guide to Pay as You Earn, TRA

TRA, (2006),Audit Manual, TRA

TRA, (2003), TRA Second Corporate Plan at Glance, TRA

FCM, (2006), Guidelines for Practical Training, University of Dar es Salaam


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2,!!"

2,!!:A!!!"-

This document was a letter I wrote to TRA management asking for rotation within

TRA departments.

UNIVERSITY OF DAR ES SALAAM

FACULTY OF COMMERCE AND MANAGEMENTOFFICE OF THE PRACTICAL TRAINING PROGRAMME

PRACTICAL TRAINING PROPOSAL

The practical training programme supervision will consist of an internal supervisor

from TRA and an external supervisor from University of Dar es Salaam. Each of

them, among other things will be required to assess the proper work schedule given to

the students. We present you with a proposal on how our eight (8) weeks programme

can be organized.

Proposed Area of study Proposed Duration

Audit section, Domestic Revenue

Department 2 weeks (1st July to 11th July)

Debt management 2 Weeks (14th July to 25th July)

Accounts office 2 Weeks (28th July to 15th August)Customs 2 Weeks (18th August to 26th August)

Please we ask you to accept and correct it as you see relevant.


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2,(!!:A!""9!-

This was a letter submitting a rotation plan to the Human Resources Manager as he

requested us to do after I asked for rotation.

Practical Training Students,

Tanzania Revenue Authority,Mbeya Regional Office.

28th

July 2008.

Human Resource Manager,Tanzania Revenue Authority,

Mbeya Regional Office,

Mbeya.

Dear Sir,

RE: STUDENTS PRACTICAL TRAINING ROTATION PLAN

The above heading is highly concerned.

Owing to your practical training rotation plan request, we arranged and spread ourselveswithin Tanzania Revenue Authority in the following manner;

No.Student

NameInstitution Current Location

28th July-8th

August [2 Weeks]

11th August-22nd

August [2 Weeks]

1Mbwile

Patrick RUDSM Audit Section Accounts Office

Debt Management

Section

2Mgabe

LameckUDSM Audit Section Accounts Office

Debt Management

Section

3 Victor Owen IFMDebt Management

SectionAudit Section Accounts Office

4ZainabDawood

IFMDebt ManagementSection

Audit Section Accounts Office

5 Lucy Lucas SAUTDebt Management

SectionAudit Section Accounts Office

6NjobeleFrancis

IFM Accounts OfficeDebt ManagementSection

Audit Section

7Lillian S

ShauriUDSM Accounts Office

Debt Management

SectionAudit Section

Students from IFM and SAUT will still be remained with one extra week ahead of this plan,

it is expected that they will remain in their final allocations as indicated in the plan.

We would also like to thank you for your concern on the whole matter and helping us tomake it a success. We are hoping for your further assistance as we are going to report any

problem or progress when it occurs.

Faithfully yours,

Mbwile Patrick R,

Representative, PT Students


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2,,!!:A>!-

Plan designed for my training at TRA as proposed before to the management.

TANZANIA REVENUE AUTHORITYUDSM PT STUDENTS

WORK PLAN

Period Location Type of Work Details of Works To Be Done

1st

July to 28th

July[1 Month]

Audit

Section

Auditing

customers

business records

Examining customers documents, physically

visiting customers business areas, checking

compliance to various laws, etc

28th

July to 8th

August [2 Weeks]

Accounts

Office

Cash

Management

Bank Reconciliation of various cash

collections, issuing allowances, etc

11th

August to 26th

August [2 Weeks]

Debt

Management

Section

Debt collection

and enforcement

Registration, assessment and collection of

tax. Debt enforcement and physically visiting

customers who fail to pay tax.

Tra Past Report

Documents

Transcript of Tra Past Report