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Revised legislation on companies set to curb fraud, says consultant
2007-05-22 09:03:38
By Christina Mwangosi
A PricewaterhouseCoopers taxation consultant, Rishit Shah, has said that the coming into effect of the Companies Act 2006, which makes it obligatory for company directors and other executive officials to disclose their salaries and other benefits, would help to curb fraud in the country.
Speaking during a one-day energy and mining conference held in Dar es Salaam over the weekend, Shah said the Companies Act of 2006 would do away with the issues of salary confidentiality and other benefits that the directors earn.
``According to this Act there will be no confidentiality. Though the Act was assented to by the president in 2006, it only came into effect this year,`` said Shah.
Shah said that his company was educating its clients on the contents of the law.
He said before the Act became operational, incomes earned, especially by directors, were treated as confidential which, he maintained, gave room to corruption.
``The mining and energy sectors are undergoing a dynamic change. There is need for these sectors to follow proper accounting and auditing procedures which abide by the tax legislation,`` he observed.
``We are in a move to educate the public on how mining expenditure should be accounted for. This will make people understand the benefits of mining also,`` he said.
Shah said the Companies Act would also help taxpayers to know the right amounts of taxes they are required to pay.
He advised companies to prepare their books ready for auditing in order to avoid causing inconveniences that might arise when Tanzania Revenue Authority officials wish to be furnished with company information.
The conference intended to educate mining and energy clients on changes that have recently taken place in accounting, the Companies Act and taxation issues.
PricewaterhouseCoopers, in collaboration with TRA and the government, pledged commitment to ensuring that mining and energy sectors develop faster than they were doing now.
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