AFRICAN JOURNAL OF LAW AND PRACTICE

Navigating the Arm's Length Principle: Bridging the Gap Between Transfer Pricing and Customs Valuation in the East African Community

2024-06-24T17:27:07+00:00

The role of the arm’s length principle is significant in both transfer pricing and customs valuation for revenue collection between related multinational corporations (MNCs) within the East African Community (EAC). Taxing related MNCs is challenging when the same transaction is taxed under both transfer pricing and customs valuation frameworks using the arm’s length principle. MNCs are subject to double taxation or unfair tax risks, while revenue authorities face the risk of revenue loss by handling the same transaction under different legal frameworks, despite having the same objectives. Although full harmonization is generally considered unattainable, certain areas of law can be harmonized to promote the consistent application of the arm’s length principle in both contexts. This article seeks to reveal the legal challenges faced by income tax and customs departments in applying the arm’s length principle. Using doctrinal and comparative methods, the study found discrepancies between domestic income tax and customs laws within the region, and that EAC laws do not fully adopt international standards for harmonizing these two sets of laws. It recommends amendments to income tax and customs laws to enhance coherence.

Transparency and Accountability in Tanzanian Petroleum Industry: The Role of Institutions and Challenges Associated

2024-06-24T17:49:53+00:00

The petroleum industry is among the key sectors currently growing in Tanzania and contributing to the country's economic development. It needs precise regulation and management for sustainable development; in achieving that, it is essential to ensure that the setup of institutions responsible for the sector do facilitate transparency and accountability principles. The article analyses the setup of the said institutions and identify challenges hindering performance of its role in ensuring realization of the principles, in the end it provides a way out in having framework that realize the principles. Laws and scholarly works were reviewed in the analysis, direct information from personnel in the institutions also forms part of the findings, which reveals that a number on institutions are established and tasked with different roles in management of the sector, however, despite the commendable efforts, the institutions fail to facilitate realization of the principles due to several challenges including lacking independence and autonomy, limited access to petroleum information, and no specific roles assigned to some of the institutions in relation to the principles. Hence, to tackle the challenges, the article recommends assurance of autonomy, independency to the institutions and setting clear roles for each of them to perform

Judicial Responses to Climate Change in Tanzania: Has the Paris Agreement Sparked Emerging Jurisprudence?

2024-06-24T17:57:54+00:00

The Paris Agreement has set a legally enforceable legal framework that has enjoyed substantial international support thus creating a global context for climate litigation. This, however, has prompted an increase in climate change cases in many jurisdictions with courts in the global north and south forming new laws to ensure that governments and businesses are held liable for climate-related damages, although this trend has not been uniform across all countries. This study aims to analyze the role of the judiciary in addressing climate change in Tanzania, with a specific focus on the influence of the Paris Agreement in shaping emerging climate change jurisprudence. Through doctrinal research and expert survey, the study finds that Tanzanian courts primarily rely on domestic laws enacted before the Paris Agreement, and the lack of consistency with the Paris Agreement prevents the incorporation of its concepts into judicial decisions. The study suggests modernizing Tanzania's legal structure to reflect international climate commitments and increasing the judiciary's ability to handle climate-related disputes.

The Legal Complexities of the Relief in Division of Matrimonial Real Property upon Divorce in Mainland Tanzania: Lessons from Kenya

2024-06-24T18:02:15+00:00

The Law of Marriage Act, 2019 provides two main reliefs on the division of matrimonial property to spouses during divorce: The division of the property or the sale of property and distribution of proceeds. Division or sale of the property and the distribution of proceeds of the sale affects divorcing and non-divorcing spouses in polygamous marriages. Non-divorcing spouses can prevent the execution of a valid decree since their contribution or interest in the property was not considered during divorce proceedings. Courts are restricted to these reliefs since the Law of Marriage Act lacks other reliefs which take into consideration the convolutions of polygamous marriage and the intricacies of real property in the division. This article examines the legal complexities of reliefs in the division of matrimonial real property in polygamous marriages. The article uses doctrinal and comparative methodologies, exploring Kenya's reliefs during the division of matrimonial property to inform potential reforms in Mainland Tanzania’s legal framework. The article asserts that the reliefs in section 114 of the Law of Marriage Act are insufficient to address the challenges of property division in polygamous divorce. The Article advocates for comprehensive legal reforms on reliefs to address the unique dynamics of polygamous marriages.

Regulatory Oversight of FinTech in the Era of Artificial Intelligence: Assessing Consumer Risks in Tanzania's FinTech Sector

2024-06-24T18:09:06+00:00

The rapid evolution of Financial Technology (FinTech) is significantly transforming the financial sector, filling gaps traditionally left by conventional banks. This transformation is expanding access to formal financial services, fostering economic growth and reducing poverty in Tanzania. Despite its substantial growth, the FinTech industry in Tanzania operates without a comprehensive legal and regulatory framework, thereby exposing consumers to unforeseen risks. This paper examines the legal and regulatory challenges stemming from the integration of Artificial Intelligence (AI) and Machine Learning (ML) in the financial industry. To address these issues, this study employs doctrinal legal methods and a comparative study approach. It draws insights from international legal instruments, policies, and laws of other jurisdictions to identify legal gaps and propose solutions. The study utilises deductive and inductive reasoning for data analysis, applying statutory interpretation rules to evaluate Tanzanian laws and identify existing gaps. Furthermore, the Ejusdem Generis rule is employed to assess the legal landscape and challenges associated with AI adoption. Key Tanzanian laws and Regulatory bodies are scrutinised to pinpoint regulatory shortcomings. This study identified deficiencies and provide recommendations to enhance FinTech security in Tanzania.

The Internet, Development, Human Rights and the Law in Africa, edited by Danwood M. Chirwa and Caroline B. Ncube, Routledge, 2023, 4 Park Square, Milton Park, Abingdon, Oxon OX14 4RN, 250 pp., US$ 192.00 (hardcover), ISBN 978-1-032- 31072-5

2024-06-24T18:44:12+00:00

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