Table of Contents
ACKNOWLEGEMENT....................................................................................................................................2
CERTIFICATION............................................................................................................................................3
CHAPTER ONE..............................................................................................................................................4
1.1 HISTORICAL BACKGROUND OF TANZANIA REVENUE AUTHORITY (TRA)................................................4
1.2 TYPES OF BUSINESS ORGANIZATION.....................................................................................................5
1.3 ORGANIZATION STRUCTURE..................................................................................................................6
1.4 ACTIVITIES PERFORMED BY THE ORGANIZATION..................................................................................7
1.5 LEVEL OF TECHNOLOGY.......................................................................................................................8
1.6 CUSTOMERS.........................................................................................................................................8
CHAPTER TWO.............................................................................................................................................9
2.1 PLACEMENT IN THE ORGANISATION.....................................................................................................9
2.2 TASK AND DUTIES PERFORMED BY THE STUDENT.................................................................................9
2.3 WORK ENVIROMENT...........................................................................................................................10
2.4 PROBLEM FACED.................................................................................................................................10
2.5 SOLUTION TO PROBLEMS FACED.........................................................................................................11
2.6 EXPECTAION AND THE RESULT OF THE ATTACHMENT........................................................................11
2.7 NEW THINGS LEARNT..........................................................................................................................11
2.8 GAPS IN TEACHING BETWEEN THEORY AND PRACTISE.......................................................................12
2.9 RELEVANCE OF ATTACHMENT.............................................................................................................12
CHAPTER THREE........................................................................................................................................13
3.1 CONCLUSION.......................................................................................................................................13
3.2 RECCOMENDATION CONCERNING IMPROVING GAP IN TEACHING.....................................................13
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ACKNOWLEGEMENT
First of all I would like to thank almighty God for making me health throughout my practical
training until when I was writing this report.
I am highly in debited to express my special thanks and appreciation to my field supervisor Eng.
EMMANUEL MGISHA for the reasonable helpful and support which made this report to be
accomplished and successful.
.Also special thanks to my lovely parents Mr. and Mrs. MAGIDA for their moral support,
prayers, encouragements and productive suggestion that lead in pursuing and get straight to my
ambitions, goals and carrier in academic.
Also I would like to express my gratitude to TRA at Meatu District manager for accepting my
application letter for practical training and considered it in a positive way together with the other
employees. Also special thanks goes to my internal supervisor Mr. JOSEPH J LUHUNGA for
assisting me in field report writing.
It is not possible to mention every one by name for their contribution all I can say is that I give
my special thanks to all people who by any means have contributed for this report to become
successful.
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CERTIFICATION
The undersigned do hereby certify that has read and reached this industrial training report
conducted by; _____________________ with Registration no; _______________ to be accepted
by NATIONAL INSTITUTE OF TRANSPORT for practical fulfillment of academic
requirement of HIGHER DIPLOMA IN ACCOUNTINGA AND TRANSIPORT FINANCE
Signature; ………………………
Date; _____________________
DECLARATION
I YOHANA L MAGIDA , declare that, except where references are made, this report is a result
of my own effort and initiative which have been planned, organized and presented without
plagiarism and it has never been submitted in any other instate for an award or otherwise
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CHAPTER ONE
1.1 HISTORICAL BACKGROUND OF TANZANIA REVENUE
AUTHORITY (TRA)
The Tanzania Revenue Authority (TRA) was established by act of parliament NO.1995 and
started its operation on 1/07/1996. In caring out its statutory function, TRA is regulated by law
and it is responsible for administering impartially various taxes of the Central Government. The
authority which administer a number of taxes is under the general supervision of Board of
Director.
During 1996/1997, the Government fiscal policy was set to enhance revenue collection and
improve expenditure control measure aiming at restraining the fiscal deficit. On the revenue side
the measure that were implemented include the strengthening of tax administration through
establishment of the TRA. The TRA is a government agency of Tanzania charged with the
responsibility of managing the assessment, collection and accounting for all central Government
revenue. Its a semi-autonomous body that operate in conjunction with the Ministry of Finance
and Economic Affairs under the general supervision of Ministry of Finance. Offices of TRA are
located in throughout the regions of Tanzania with its headquarters in soloing drive at Dar es
salaam hence also being present in Zanzibar. The motto of TRA is “together we build our
nation”.
VISION OF TRA
The vision of TRA cooperate plan is “To increase domestic revenue through enhancement of
voluntary tax compliance” The authority will achieve this through continues improvement effort
which will focus on training, technology enhancement, customer services and enforcement
programs.
MISSION OF TRA
The mission statement summarizes TRA`s role and how customers expectations will be met.
TRA mission statement is “We make it easy to pay tax and make lives better”.
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1.2 TYPES OF BUSINESS ORGANIZATION
TRA is a government owned organization [public organization] whose main roles/businesses 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.
Organization Monographs The organization structure of the Authority starts from the top
management level to the lower level of operates. As being expressed before, Board of Directors
is the top management, followed by Commissioner General, Deputy Commissioner General,
Directors, Department Commissioners, Deputy Commissioners, Deputy Directors, Regional
Managers & District Managers, Senior Officers and operational staff all those together form a
building block of a team that is committed with a duty of administration of tax laws and revenue
collection for state budget. The following bellow is the Organization Chart of Tanzania Revenue
Authority to show the functional flow of operationalization of revenue administration and Tax
Management within the Authority.
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1.3 ORGANIZATION STRUCTURE
Board of Directors
Commissioner General
Deputy Commissioner
General
Director of Internal Quality Coordinator
Audit
Director of the Board
Deputy Director of
Secretariat and Legal
Internal Audit
Services
Director of Research
Director of Taxpayer
and Policy
Services and Education
Director of
Commissioner for Director of Human
Commissioner for Commissioner for Commissioner for Information and
Customs and Resources and Director of Finance
Large Taxpayers Domestic Revenue Tax Investigations Communication
Excise Administration
Technology
Deputy
Deputy Deputy Deputy Deputy Director Deputy Director Deputy Director
Commissioner
Commissioner Commissioner Commissioner Human Resources Accounting Production and
Modernization and
Operations Operations Operations Operations Operations
Risk Management
Deputy
Deputy Deputy Director
Deputy Commissioner
Commissioner Deputy Director Management Systems
Commissioner Case Development,
Control and Administrtaion Accounting Development and
Technical Services Policy and
Enforcement Maintenance
Procedures
Deputy
Commissioner Principal ITA
Procedures and
Licencing
Deputy
Commissioner
Zanzibar
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1.4 ACTIVITIES PERFORMED BY THE ORGANIZATION
TRA as semi-autonomous agency of government, it offers different kind of services to the
taxpayers. These includes Registration, Tax assessment, Tax audit, Permit and license, Tax
education, Provision of statistical data and training.
I. Provision of Taxpayer Identification Number; A Taxpayer Identification Number
(TIN) is an identifying number used for tax purposes, drivers license and vehicles
license. A TIN may be assigned by the Social Security Administration or by the
Internal Revenue Service (IRS), this TIN are provided according to the demand such
as TIN for business and TIN for non –business(property ownership).
II. Provision of Value Added Tax on local supplies, VAT is a consumption tax charged
on taxable goods, services immovable property of any economic activity whenever
value is added at each stage of production and at the final.
III. Customs Clearance. This service involves with the control of prohibited and restricted
goods or materials imported into the country through borders, seaport and airports.
Therefore; Customs clearance work involves preparation and submission of documentations
required to facilitate export or imports into the country, representing client during customs
examination, assessment, payment of duty and co taking delivery of cargo from customs after
clearance along with documents.
IV. Provision of Stamp duty, Stamp duty is a tax that is levied on documents. this
included the majority of legal documents such as cheques, receipts, military
commissions, marriage licenses and land transactions. Stamp duty is levied at the
rate of 2% of the turnover for the traders with composition agreement with the TRA
while those using adhesive stamps affixed on cash receipt pay 3.6% of the sale value.
The duty is paid by businesses, which are not VAT registered Customs Clearance.
This service involves with the control of prohibited and restricted goods or materials
imported into the country through borders, seaport and airports.
Therefore; Customs clearance work involves preparation and submission of documentations
required to facilitate export or imports into the country, representing client during customs
examination, assessment, payment of duty and co taking delivery of cargo from customs after
clearance along with documents.
V. Provision of Stamp duty, Stamp duty is a tax that is levied on documents. this
included the majority of legal documents such as cheques, receipts, military
commissions, marriage licenses and land transactions. Stamp duty is levied at the
rate of 2% of the turnover for the traders with composition agreement with the TRA
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while those using adhesive stamps affixed on cash receipt pay 3.6% of the sale value.
The duty is paid by businesses, which are not VAT registered
1.5 LEVEL OF TECHNOLOGY
The level of technology of TRA in Meatu District was of minimal level, because many of the
activities like record keeping of tax position, tax assessment, and identification of tax payer are
kept manually . Also some of activities are kept electronically like list of tax payer within the
district, provision of TIN, provision of tax clearance, and issue of receipt(this are were organized
by using TRA network.
1.6 CUSTOMERS
Tanzania Revenue Authority in Meatu District save all people including business owners
,property owners [ tax payers] and who seek for driving license within and outside Meatu who
come to ask for a service.
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CHAPTER TWO
2.1 PLACEMENT IN THE ORGANISATION
The PT took place at TRA MEATU DISTRICT which is particularly contain only one
department known as DOMESTIC REVENUE DEPARTMENT (DRD). Various tasks and
duties was performed in this line as part of attachment training.
2.2 TASK AND DUTIES PERFORMED BY THE STUDENT
During my practical training at TRA, my internal supervisor assigned different duties and task to
perform. Those task and duties are
I. Physical survey analysis
I pursued to visit different place during my PT whereby I visited Mwanhuzi town shops for the
purpose of analyse different information for taxpayers like their amount being assessed for the
year of income and sales per day in order to determine on whether the coming tax liability will
increase or not and also to determine on whether the taxpayers has reach the stage of using EFD
machine for those they do not have.
II. Registry activity ( Filling tax position)
I achieved to prepare tax position report for the different taxpayers for the aim of knowing the
taxpayer which are active and dormant by looking on their payment of tax liability and also to
know those who have close their business due to different reasons.
III. Assessment of taxpayer
The taxpayer has to be assessed for the purpose of ensuring that proper and require tax liability is
paid. The recommendation here is to check the taxpayer identification number, two passport,
application form and the required attachment and also form of interview where by tax payer will
be asked different questions like amount spent per day at home for, tax liability increase due to
high money circulation of taxpayers.
IV. Checking of the amount paid by taxpayer and its debit number
All the taxpayer are required to pay tax liability assessed for the year of income and its usually
paid in four installment ( on March June, September, December). For the third installment I
issued control number for the payment of tax liability by checking the amount required to be paid
by the taxpayers and its debit number.
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2.3 WORK ENVIROMENT
The working environment at TRA is inspiring, motivating and easy to adopt. Also the overall
experience I receive from TRA is that work is done as team work whereby absence of one
member it leads to deals to a gap in per suing the task ( physical survey analysis was done as a
team work) an d few of works are done individually like TIN registration and open of taxpayer
files. Also for the problem I faced during performing the task I had to ask for the help from the
staff members apart from the absence of staff members.
2.4 PROBLEM FACED
TRA in Igunga District doing the best to make sure it is doing the wonderful job to utilized
matter of collection of revenues to the majority in the country. However there are some
challenges facing them. There are many challenges/Problems that Domestic revenue departments
face in Tanzania Revenue Authority. Here are the important ones:
I. Technology
It was challenge to me soon after I started to work. There are some duties require to know
technological knowledge such as managing employees database by using TRA Software. The
software took almost a week for me to be familiarized with it.
Also the low access in network in some times when I was using TRA network in different
activities like TIN registration, issue receipt of tax. This was leading to slow in working
performances and complaining from the costumers
II. Little understanding of some of the costumers
This leading to the difficulties in customer care example some of costumer did not know even
their age this was making some activities hard to accomplish for example TIN registration which
was need some information from customer.
Also some of they not know even when they supposed to pay tax according to their tax
accounting.so this was causing them to pay penates because of late in payment
Some of the customer they did not provide true information about their sales when I was
conducting physical survey, they provide wrong information so that to avoid actual payment of
tax.
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2.5 SOLUTION TO PROBLEMS FACED
Technology, in this case TRA should improve their system so that people will not be complain
for network busy and slow customer service in some days. Also the keeping of information in
manual way in not healthful for tax payer information because of being damaged or lost, so it
better this information to be kept in software.
2.6 EXPECTAION AND THE RESULT OF THE ATTACHMENT.
My thought was that PT would provide all exposure to opportunity that would lead to accounting
carrier development. Most of the expectation to the training were met and not met.
Among of the expectation I have are as follows
Applying my accounting skill (calculation of installment and interest) into practice and acquire
new knowledge.
To work with experts/experienced accountants and other professional employees or staff
Understand how people communicate, manage their activities, work as team and how they
behave.
To make new friends from different universities.
2.7 NEW THINGS LEARNT
Being at TRA-MEATU for eight weeks has been of advantage as I learned and acquired new
ideas and techniques in professional and personal life in general. I learned on how to register
TIN to taxpayers, preparation of tax position, registry activity, how to make assessment to
taxpayers, the role of privacy and secrecy of the organization information and also key success
factor like trustworthy and hard working.
I also learned how people work together as a team despite of their difference and how this
working relationship influences the performance of the organization. Mostly important, I learned
how to live and work with different people with different attitudes and vision.
I learned on how to communicate with different customers because most of the taxpayers were
asking different questions.
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2.8 GAPS IN TEACHING BETWEEN THEORY AND PRACTISE
During my practical training it’s time for discovering a gap between theory and practise. Theory
is usually provided in order to build the way for practice to undertake because you cannot
practice something without the theoretical aspects and also theory cannot cover all what is
needed at the market.
During my practical training at MEATU there were gaps exists between theory and practice such
as
Computer knowledge, the computer course which is provided at University is more theoretical
which cannot meet the demand of the labour market especially in software like ITAX which is
used to keep records of the taxpayers.
The knowledge received from lecture is general of what is in the real world. Only basic
knowledge and principle are provided. This make the first day in real world though and force the
student to start learning and incorporate the new incoming ideas and knowledge and since no two
organization are similar, the lecture fail to fully prepare the student for specific organization by
only provide them with the new one.
In other area, there were no gap between theory and practice as I receive the instruction on what
is to be done from my supervisor. The senior provide information, instruction, regulation and
other things to follow in working place that brought me up to date with the assignment and it
helped in reducing the gap between theory and practice.
2.9 RELEVANCE OF ATTACHMENT
The field attachment was relevant to me in obtaining training and valuable experience in real life
situation and acting responsibly as real employee and observing the code of conduct bearing in
mind the practical training objectives. It helped to integrate theory received from lecture and
practice, develops habit of critical thinking and exposed to managerial decisions through
cooperation received from TRA staff team.
The practical training also helped to receive new ideas, analytical skill, creativity, problem
solving skills, practicing organizational culture behaviour like punctuality, discipline, dressing
code and accountability. It enable me to acquire new knowledge in work place, whereby it is not
possible to acquire all of required knowledge in the class, therefore the PT has filled the gap that
were not possible to be filled in lecture.
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CHAPTER THREE
3.1 CONCLUSION
The TANZANIA REVENUE AUTHORITY is a government agency of Tanzania, charged with
the responsibility of managing the assessment, collection and accounting of all central
government revenue. It is semi-autonomous body that operates with the Ministry of Finance and
Economic Affairs.
As far as PT is concerning, its main purpose of being established is to give an opportunity for
student to be able to integrate theory with practice. During the stay at TRA I realized this, which
not added a new insights on my study career but concerning those theories already existing.
Also, have learned to behave professionally that is deliver services in accordance with TRA
policies and relevant technical and professional standards, respect the confidentiality and privacy
of clients, people and others with whom the firm does business.
In addition to that, PT opens up employment opportunity for the students since the same
organization might call back the student after graduation. This is because practical training
widens the knowledge and exposes the student in real practical world.
Furthermore, my practical training at TRA enhanced my knowledge in business and technology.
It improves my skills , knowledge, life experience, confidence, and life experience.
3.2 RECCOMENDATION CONCERNING IMPROVING GAP IN
TEACHING.
I order to narrow the gaps in teaching I suggest the following consideration to be revised
Additional necessary effort to ensure student are competent on information technology. There
should be more practical training session program in computer programs. On my suggestion it
will enhance efficiency use and quick adaptation to technological developments taking place in
the organizations.
The practical training should be added rather than theoretical aspects when teaching, for
example student are taught business terminologies and instruments like cheque, letter of credit
13
and bill of exchange and how they are used. This will make them efficient when they are
employed because most of this are common in business organization.
The PT should be improved by ensuring that the students are placed in the specific department in
the organization regarding the field of study of the student. Time for practical training should be
extended say to ten (10) weeks; this will at least give student enough time to work in the
organization to get more experience.
RECOMMENDATION CONERNING HANDLING GAPS IN PLACEMENT PROCESS.
In order to handle gaps in placement process I suggest the following consideration to be revised
The placement process should be done earlier to ensure that at mid of the second semester each
student is properly placed.
The faculty should contact different organization to know if and how many placements are they
going to offer. This will improve the placement process and reduce the task of going around
looking for the placement to the student.
Student should be given assignment to go and obtain information on how the organization
operate, accounting package used this will help students to acquire more knowledge.
Also student should go frequently for study tour in various organizations and industries; this will
enable them to see how practically managers in several departments are performing their
managerial work.
Organization should cooperate fully with the student to ensure the students are assigned tasks to
reflect their field of study.
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