In a move to collect piling unpaid taxes, TRA took a bold step yesterday by seizing five of TFF vehicles in demand for payment of differed taxes in excess of one billion shillings.
Besides the seized vehicles, the TRA collection tentacles is most likely to curve on the soccer federation’s most valuable asset, the Karume Memorial Stadium, so worries TFF president Jamal Malinzi.
The situation has been highly delicate on part of the defaulters TFF as Malinzi says the seizure of the five vehicles has been extremely overwhelming.
Before taking the latest move, TRA had previously closed several bank accounts of the football federation that had a total of 250m/- in total.
TRA demands 1.6 billion shillings that has not been paid by the federation as a result of avoiding taxes inform of PAYE ( Pay As You Earn) for salaries of Danish coaches Jan and Kim Poulsen.
The Poulsens separately coached the national soccer team, Taifa Stars from year 2010 to 2014. The coaching duo got away with salaries without PAYE deductions and TFF never bothered to meet taxation terms.
Besides the PAYE arrears, TFF is also in trouble for avoiding paying Value Added Tax (VAT) of twenty percent on gross gate collection amounting to 1.8 billion shillings collected from gate revenue when Brazil played against Taifa Stars at the National Stadium in Dar es Salaam on July 7, 2010.
Stars lost the match by 5-1 goals but TFF substantially gained through the high gate collection which remains as s record for the Stadium since it started to host matches in 2008.
TRA director of education for tax payers
Richard Kayombo, confirmed the move by the authorities that resulted in holding the vehicles.
"It’s very true that we are holding five vehicles of the football federation, a move that was prompted by failure to pay various taxes accumulations amounting to 1.118 billion shillings for five years since 2010.
Malinzi said the football federation is in deep trouble after the TRA move and described the situation as rubbing salt on to ‘a fresh wound’.
Liquidity crisis within TFF has deepens as the federation claims that it has incurred loss amounting to 250m/- resulting from eleventh hour pullout of Chad national soccer team from the ongoing African nations Cup qualifiers. The match was supposed to be played at the National Stadium in Dar es Salaam on Easter Monday.
TFF is also indebted to Stars coach Charles Boniface whose 25m/- monthly salaries are in arrears for eight consecutive months.
Overlooking TFF responsibilities, Malinzi claimed that the Ministry for Information, Culture, Arts and Sports is responsible to pay the taxes of the two coaches who walked away with gross salaries without PAYE deductions.
Malinzi was elected as president of the TFF on October 27, 2013 to take over from Leodegar Tenga whose two four year tenures came to an end.