On 16 April 2019, Tanzania’s apex court, the Court of Appeal, had the occasion to deal with the above question in Commissioner General TRA v. Mohamed Al-Salim and Omary Ally Hassan, Civil Appeal No. 80 of 2018.
This appeal originated from the dispute sorrounding the seizure and forfeiture of unaccustomed goods which were found in the respondents’ possession contrary to section 200(d) (iii) of the East Africa African Community Customs Management Act of 2004 (the EACCMA).
Subsequently, the Commissioner General compounded the offence in accordance with section 219 of the EACCMA. The respondents appealed to the Tax Revenue Appeals Board (‘the Board’). The Commissioner General raised a preliminary objection that the Board lacks jurisdiction to hear and determine an appeal against a compounding order of the Commissioner for Customs. However, the Board upheld the preliminary objection and struck out the appeal.
Aggrieved, the respondents successfully appealed to the Tax Revenue Appeals Tribunal (‘the Tribunal’), which reversed the decision of the Board. The Commissioner General then lodged an appeal before the Court of Appeal of Tanzania (‘the Court’) on the grounds among others that “the Tribunal erred in law by directing the Board to hear on merit the appeal against the compounding order of the Commissioner for Customs…”
After considering the arguments and submissions of both sides, the Court reversed the decision of the Tribunal and upheld the decision of the Board to strike out the respondents’ appeal against the compounding order made by the Commissioner for Customs, maintaining that the Board has no jurisdiction to entertain such an appeal in terms of section 219 (3) (e) of the EACCMA and section 7A of the Tax Revenue Appeals Act, Cap 408.
Since decisions of the Court of Appeal bind the Tribunal and the Board, the position is that a taxpayer who is aggrieved by a compounding order of the Commissioner for Customs cannot file an appeal against the order in the Board which lacks jurisdiction to hear and determine the appeal. However, leeway exists for the taxpayer to apply for judicial review of the compounding order at the High Court under Part VII sections 17-19 of the Law Reforms (Fatal Accidents and Miscellaneous Provisions) Act, Cap 310.
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This blog post is intended as a general overview and discussion of the topics and issues dealt with. The information is not intended to be, and should not be used, as a substitute for seeking legal advice or other professional advice in relation to any particular situation.
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