THE EFFECTIVENESS OF TAX LAWS IN PROTECTING SMALL AND MEDIUM ENTERPRISES RIGHTS IN TANZANIA: BRIDGING THE GAP BETWEEN LEGAL FRAMEWORKS AND PRACTICAL RELALITIES

This paper discusses how Tanzanian taxation regulations are effective in protecting the security of taxpayers in the SME category. It examines the main provisions of the Tax Administration Act, 2015, the Income Tax Act, 2004, and some of the related laws to establish whether sufficient protection is offered by the laws. The case study points out failures in the legal framework and its applied manifestation, especially the issue of bureaucracy, low taxpayer awareness, and system failures in the Tanzania Revenue Authority. A comparative reflection on the practices in other jurisdictions in East Africa is also given as an example of possible reforms. The article, in conclusion, finds that although Tanzania has put a strong legal framework in place, the efficacy in its ability to guard SME taxpayers is not strong and that legal, administrative and policy reforms should be enacted to achieve fairness and compliance as well as economic development.