THE UNITED REPUBLIC OF TANZANIA
NATIONAL AUDIT OFFICE
PERFORMANCE AUDIT REPORT ON THE MANAGEMENT OF REVENUE COLLECTION FROM TELECOMMUNICATION SERVICE PROVIDERS
AS IMPLEMENTED BY
TANZANIA COMMUNICATION REGULATORY AUTHORITY, THE TANZANIA REVENUE AUTHORITY, AND THE MINISTRY OF WORKS, TRANSPORTATION AND COMMUNICATIONS
REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
March 2020
THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE
Vision To be a highly regarded Institution that excels in Public Sector Auditing
Mission To provide high-quality audit services that improves public sector performance, accountability, and transparency in the management of public resources
Core Values In providing quality service, National Audit Office shall be guided by the following Core Values:
Objectivity We are an impartial entity that offers services to our clients in an unbiased manner
Excellence We are professionals providing high quality audit services based on best practices Integrity We observe and maintain the highest standards of ethical behaviour and the rule of laws and a strong sense of purpose
Peoples’ Focus We value, respect and recognize interest of our stakeholders
Innovation We are a learning and creative public institution that promotes value added ideas within and outside institution
Results Oriented We are an organization that focuses on achievement based on performance targets
Team Oriented We work together as a team, interact professionally, and share knowledge, ideas and experiences
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F
ABBREVIATION AND ACRONYMS ...... V
DEFINITION OF TERMS ...... VI
PREFACE ...... VIII
CHAPTER ONE ...... 1
INTRODUCTION ...... 1
1.1 BACKGROUND ...... 1 1.2 MOTIVATION FOR THE AUDIT ...... 2 1.3 DESIGN OF THE AUDIT ...... 3 1.4 STANDARD USED FOR THE AUDIT ...... 9 1.5 DATA VALIDATION PROCESS ...... 9 1.6 STRUCTURE OF THE REPORT ...... 10
CHAPTER TWO ...... 11
SYSTEM FOR MANAGING REVENUE COLLECTION FROM TELECOMMUNICATION SERVICE PROVIDERS ...... 11
2.1 INTRODUCTION ...... 11 2.2 LEGISLATION ...... 11 2.3 PLANS AND STRATEGIES ...... 12 2.4 KEY STAKEHOLDERS AND THEIR RESPONSIBILITIES ...... 13 2.5 TELECOMMUNICATION SERVICE PROVIDERS ...... 14 2.6 RELATIONSHIP BETWEEN VARIOUS ACTORS ...... 14 2.7 MANAGEMENT OF REVENUES COLLECTION ...... 15 2.8 MONITORING BY MWTC ...... 22
CHAPTER THREE ...... 24
TAX REVENUES COLLECTION BY TRA ...... 24
3.0 PREAMBLE 24 3.1 TRA’S TAX AUDIT PLANS DID NOT ADEQUATELY COVER AUDITS OF TELECOMMUNICATIONS SERVICE PROVIDERS ...... 24 3.2 INADEQUATE ADHERENCE TO THE TAX AUDIT BUSINESS PLAN ...... 26 3.3 INADEQUATE USE OF ELECTRONIC REVENUE COLLECTION SYSTEM (ERCS)...... 27 3.4 CONTRADICTION BETWEEN THE DATA PRODUCED FROM ERCS AND TRAS ...... 29 3.5 INADEQUATE USAGE OF INFORMATION FROM TRAS ...... 30
CHAPTER FOUR ...... 32
ENHANCEMENT OF TAX REVENUES COLLECTION BY TCRA ...... 32
4.1 COMPLIANCE TREND RECORDS ARE NOT MANAGED WELL...... 32 4.2 TCRA SET UP A SYSTEM OF SANCTIONS FOR ENFORCEMENT OF THE LICENSE ...... 33
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T RR T A T R T A AT A T RA T T R R RAT R TT R RT A T RA A T A T T TT
CHAPTER FIVE ...... 40
COORDINATION AND MONITORING OF TELECOMMUNICATION SERVICES ...... 40
TR T R AT T R T
CHAPTER SIX ...... 46
CONCLUSION ...... 46
RA
CHAPTER SEVEN ...... 50
AUDIT RECOMMENDATIONS ...... 50
TR T R AT T TA A A R A T R T TRA R AT T TA A A AT R AT R A T R T T RA R AT T TR R TRA RT A AT T
REFERENCES ...... 53
APPENDICES ...... 54
A T T R A A R A R T R A T R T A R A R T R A T RA R A AT TR T R A TA A A T T T T A R A AT TR T R R TR R TRA RT A AT A T TR A TA AT A T R R AT …… A R R T A T T T
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F
Table 1.1:Revenue collection stream from telecommunication sector considered in this audit ...... 4 Table 1.2:The generic description of the criteria used for each question ...... 5 Table 2.1:Regulatory Fees ...... 17 Table 2.2:Minimum Rate for International Inbound Traffic ...... 20 Table 3.1:Telecommunication Service Providers in TRA ...... 25 business plan for tax audit...... 25 Table 3.3:Planned Audits in comparison with implemented Audits (2015/16-2018/19) ...... 27 Table 3.4:Unverified VAT and excise duty paid by TSP ...... 28 (July 2018-June 2019) ...... 28 Table 3.5:Revenue amount from eRCS and TRAS (2018) ...... 29 Table 4.1:Applied sanctions according to TCRA ...... 33 Table 4.2:Action taken by TCRA for non- compliant ...... 35
F F
Figure 2.1: Inter-linkage between key players...... 15 Figure 2.2: Process for managing revenues ...... 15 Figure 4.1: Decrease in traditional International Calls ...... 37
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CLF Converged Licensing Framework CoICT College of Information and Communication Technologies DIT Dar es Salaam Institute of Technology DTT Digital Terrestrial Television EPOCA The Electronic and Postal communications Act eRCS Electronic Revenue Collection System ICT Information Communication Technology LGAs Local Government Authorities LTD Large Taxpayers Department MDAs Ministries, Departments and Agencies MNO Mobile Network Operators MWTC Ministry of Works, Transport and Communications NICTBB National Information and Communication Technologies Broadband Backbone OTT Over The Top Tbps Terabyte per second TCRA Tanzania Telecommunications Regulatory Authority TRA Tanzania revenue Authority TRAS Telecommunications Revenue Assurance System TSP Telecommunication Service provider TTCL Tanzania Telecommunications Corporations Limited TTMS Tele-traffic Monitoring System TZS Tanzania Shillings
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F F Key Term Definition Source of Definition Revenue Means taxes, duties, fees, The Tanzania fines or other monies imposed Revenue by or collected under the laws Authority Act or the specified provisions of Revised Edition the laws set out in the First 2006 (section 3) Schedule; Telecommunications These are services for The Value Added services electronic transmission, Tax Act, 2014 conveyance, or routing of section 2(1) voice, data, audio, video, or any other information or signals to a point, or between or among points. Telecommunications Means a person licensed by The Value Added Service Provider the Tanzania Communications Tax Act, 2014 Regulatory Authority (TCRA) section 2(1) or an equivalent foreign body to provide telecommunication services; Over The Top Means services that ride on TCRA Strategic Applications (OTT) top of an Internet connection Plan 2016/17 – but have no relationship with 2020/21 the provider of the Internet connection Revenue assurance means systems and processes Electronic and in place to ensure that Postal revenues for licensed service Communications providers are declared with (Tele-Traffic) accuracy, completeness, and Regulations, 2018 integrity; Telecommunications means a profile of signs, Electronic and traffic signals, Postal Communications (Tele-Traffic) Regulation, 2018 international means all successful and Electronic and incoming tele- traffic billed international incoming Postal
vi
Source: Analysis of Criteria from Legislations and Regulation Policies, Guidelines, Manuals, Plans and Best Practices sources.
P F
– –
o olle u o e e l e epu l c o c
u F s
e e ue ollec o
e u e pl ple e o o u pl s
e u e use o elec o c e e ue collec o s s e e
o c o e ee e p o uce o e
e u e us e o o o o
F c l o o e e ue collec o
c e co pl ce e eco s
o o o e ces
oo o e ee
o o e Pe o ce o
e ul o l o c o e
e ll u o clus o
conducted to all TSPs. TRA’
u eco e o s
eco e o s o e e ues u o
To ensu e e ect e collect on o ta e enues o all Teleco un cat on Se ce P o de s TRA s ould
. o e ts s ased a oac to ensu e s la e ta a e s nclud n Teleco un cat on Se ce P o de s TSP a e ncluded n t e lan o Ta Aud t
. Allocate ts esou ces ud et u an esou ce t e and e u ed e u ent o ta aud t to all Teleco un cat on Se ce P o de s eac ea
. e and econc le all su tted ta etu ns us n el a le esta l s ed s ste s suc as t e lect on c Re enue ollect on S ste eR S and Teleco un cat ons Re enue Assu ance S ste s TRAS
. nsu e t at t e o ss one ene al as ull access to t e lect on c Re enue ollect on S ste eR S as e u ed t e Ta Ad n st at on lect on c Re enue ollect on S ste Re ulat ons o .
. ocu ent a l st o co un cat on se ces and oducts as ell as t e es ect e o ats t at need to e su ected to ta aud t sc ut n
. nsu e t at t e ands ts se e sto a e ca ac t and net o and dt to e a le to connect and sto e la e les nclud n t ose o e enue o Teleco un cat on Se ce P o de s
. a out a t o ou anal s s o t e s lls a a on ts sta o a e es ons le o us n Teleco un cat on Re enue Assu ance S ste s TRAS o ta e enue
e cat on and en ance t e no led e t ou e ula t a n n
. nsu e t ull ad e es and e ect el le ents t e te s a eed n t e e o andu o nde stand n t T RA and ut l e t e a a la le n o at on o collect on o su c ent e enue.
eco e o s o o u c o s e ul o u o
To ensu e t at Ta e enues a e e ect el collected o Teleco un cat on Se ce P o de s T RA s ould
. sta l s a co l ance le el o all teleco un cat on se ce o de s.
. nsu e t dent es oss le o o tun t es o e enue collect on o o e t e to TT a l cat ons and se ces
. a out e ula stud es n o de to co e u t t e est ec an s o deal n t o e t e to TT a l cat ons t a e to en ance e enue collect on and
. St en t en colla o at on t TRA ensu n t at t e e a e e ula econc l at on eet n s n o de to el TRA collect all t ul e enues o Teleco un cat on Se ce P o de s.
eco e o s o s o o s spo o u c o s
To ensu e t at T e ect el on to s t e e o ance o T RA n e ulat n teleco un cat on secto to a ds en anc n e enue collect ons T s ould
. e elo on to n and e aluat on nd cato s o e ulat n t e e o ance o T RA n e ulat n t e teleco un cat on secto
. nsu e t at T RA ad e es and e ect el le ents all t e a eed te s n t e e o andu o nde stand n et een tsel and TRA to ac l tate e ect e collect on o ta e enue.
. nsu e t e e s an nst tut onal setu o t e esta l s ent o T as an autono ous se a ate ent t to ac l tate ts e ulat on and el nate con l cts o nte est
P c ou
T e ortunes of Tanzania’s telecommunication market e e set to nc ease as t e secto eco ded est ated e enue ene ated to e S . ll on n t o le o ce se ces as t e a o e enue cont uto totall n S ll on o o t e secto ’s total revenue in the same period. The telecommunication sector’s o e all e enue as e ected to eac S . ll on e u alent to T S . t ll on t e end o o n at a stead co ound annual o t ate o . e annu .
n o at on and co un cat on act t nclud n teleco un cat on se ces eco ded a o t ate o . e cent n co a ed to . e cent n . T e o t as la el on account o t e e ans on o o le one se ces an nc ease n a t e sales and e ans on o oadcast n and nte net se ces. T e s a e o n o at on and o un cat on se ces to P e a ned at . n as t as n .
T e count ad . ll on su sc e s n o le and ed teleco un cat ons ece e . T s su sc e ase as sen o . ll on n c s ostl cont uted t e o le ndust o t . T e e o t o T RA nd cates t at t e o le one alue o t ansact ons eac ed T S . T ll on n une o n o T S . T ll on a . T s d e t e attent on o otent al e enue o Teleco un cat on Se ce P o de s. Stat st cs o T RA s o ed t at nte net use s o ed and eless connect on a sed o . ll on n to . ll on use s n . o le net o o e ato s e e e
Report called “Tanzania: Revenue Growth to be underpinned by Mobile Network Expansion into Rural Areas”. Read more at: tt s .tan an a n est.co teleco s tan an a teleco e enues o t o ecast to eac usd ll on Tan an a cono c Su e .tc a. o.t at onal T ol c T RA ua te l co un cat on stat st cs eleased n une
players in nternet service provision with their extensive national covera e followin the introduction of mobile data and broadband services such as data security and mobile money transactions.
o o o e u
National ive ear evelopment lan – si hts Telecommunication as one the important sectors in the contribution to G . imilarly in respondin to Government olicies of increasin domestic revenue the overnment throu h TRA’s Forth Corporate lan aimed at improvin efficiency in tax administration and widenin the tax net in order to collect more revenue especially from the telecommunication sector.
This audit has been motivated by the followin issues
nade uate contribution of the sector to G . The contribution of information and telecommunication to G was at in the year and and it dropped to . in and despite reported rowth in sector in .
Mobile money value of transactions rose sharply to Trillion T per uarter as of une callin for need of understandin the extent to which the overnment effectively collects revenue from the aforesaid sector.
Therefore the National Audit ffice saw the importance and sensitivity of auditin this area to assess how well the overnment throu h Tanzania Revenue Authority TRA and Tanzania Telecommunications Re ulatory Authority T RA has effectively and efficiently mana ed revenue collection from Telecommunication ervice roviders. t was expected that throu h this audit the causes and effects of the problems
Tanzania Economic urvey Tanzania Economic urvey
e t e o e a resse At the sa e t e the a t o he p to pro e the e st s ste s a pro esses or re e e o e t o ro the te e o at o se tor
es o e u
Th s se t o es r es the etho o o a approa h se o t th s a t pe a t e p a s the a a t o e t e spe a t o e t es s ope o the a t etho s or ata o e t o a a a s s a the assess e t r ter a
u o ec e The a o e t e o the a t as to eter e hether the re e e ro Te e o at o er e ro ers as e e e t e o e te
pe o e t es ere to eter e hether
TRA e s re e e a orre t a o t o Ta Re e es ro a Te e o at o er e ro ers are o e te t e
TCRA a tate Ta Re e es ro a Te e o at o er e ro ers are o e te
TCRA a TRA oor at o t o s e s re Ta Re e es are o e te ro a Te e o at o er e ro ers a
TC a e ate o tore the per or a e o TCRA re at the te e o at o se tor e ha re e e o e t o
cope o e u The a t e a e the e e t e ess o TRA a TCRA re e e o e t o ro Te e o at o er e ro ers
The a a te e t t es ere TCRA a TRA Th s s e a se TCRA as respo s e or a o other ro es pro te e o at o rastr t re or re e e o e t o TCRA as a so respo s e or re at a o e t o Ta re e es ro te e o at o ser e pro ers TRA s respo s e or Ta re e e o e t o
The str o or s Tra sportat o a Co at o as a te as t as the pare t str or CT ss es the o tr respo s e or a a e e t a o e t o o re e e ro CT a o e
The a t o se o the h hest so r es o re e e strea s sho Ta e
le e e ue collec o s e o eleco u c o sec o co s e e s u ou ce o e e ue pe o e e ue espo s le e es o collec e e ue
et or ser es Ta re e e TRA pro ers o ta re e e TCRA
at o a CT Re e e e erat o TC TTC roa a a o e CT a a Re e e at o a ter et o e t o ata Ce tre C Source: Auditors’ selection
The a t tea s te TCRA ea arters as e as aster o e ar es a aa a e o e a a ar the a t tea s te ar e Ta pa ers epart e t at TRA ea arter
The reaso or the s t as to esta sh the per or a e o the o es re e e o e t o ro Te e o er e ro ers th
er the Top app at o s o e o e ata o es a
the r areas o r s t o F rther ore the tea o pare per or a es a o st the o es to esta sh the reaso or ere es re e e o e t o The a as to pro e a o era o tr p t re th re ar to re e e o e t o ro Te e o at o ser e pro ers oreo er eet s ere he th oth a a e e t a operat o a sta o oth p TTC a pr ate o a o C Ta a a te T o a A rte er e ro ers
e se the a t o ere o r a a ears e a The reaso s or se e t the o r ears per o ere a to esta sh a tre o per or a e o re e e o e t o ro Te e o at o er e ro ers TCRA a TRA A ess a the re e a t or at o re ar re e e o e t o ro TCRA a TRA th the rat o o o r ears to pro e a thoro h a a s s o the per or a e o er the per o er re e
ssess e e
The assess e t r ter a se th s a t ere er e ro the Ta a a Co at o s Re ator A thor t A t o Ta a a Re e e A thor t TRA A t a Cap o Ta A rat o e tro Re e e o e t o ste re at o e ora o ersta o et ee TRA a TCRA Fo rth Corporate a The e er es r pt o o the r ter a se or ea h est o s as sho the Ta e
le e e e c esc p o o e c e use o e c ues o e co e e ssess e e ou ce
Ta re e es TRA as re re to o tor o The Ta a a o e t o o ersee oor ate re e e Re e e A thor t TRA ro o e t o a t t es a A t re se ers o Te e o e s re the a r e e t a o e t o at o e e t e a strat o o er e re e e a s re e e ro ers epart e ts to e ha e
e co e e ssess e e ou ce re e e o e t o ro ser e pro ers te e o ser e pro ers
respo se to o er e t o TRA Fo rth o es o reas Corporate o est re e e TRA a e a at reas o est re e e o tr t o to a se Th s as to e a h e e thro h pro e e ta a strat o a e the ta et or er to o e t ore re e e espe a ro spe a e se tors o o a as te e o at o to r s o str t o rea estate a a se tor h et orth a s a o es ro the or a se tor o ta TCRA as re re to e tro a Re e es a ta a eep re or s osta o e t o a or at o ro Co at o s TCRA ro resear h or s r e reports A t o the spe t o s res ts Te e o reporte e ts a Ta a a at o o p a ts or a Co at o s er e or at o that o ter o e t o pro ers a se the r s o o Rates o p a e to r se eter at o o o ot e s re e e t e o e t o o re e es ro te e o at o se tor Re at o o the Carr o t a resear h a e tro a s r e s o Te e tra osta re ate ss es s h as the Co at o pa t o the o er the top Te e o at TT app at o s a o s Tra ser es re at o to o tor ter at o a o Re at o s
e co e e ssess e e ou ce te e o at o tra trate a – A e A t t es Coor at o TCRA s re re to e t o a t o tre the re at o sh p a C o the Ta et ee tera t o s th TRA to A rat o TCRA TRA e ha e e t at o a e tro to e s re a re e e o e t o ro Re e e o e t o Ta Re e e te e o at o ser e ste re at o s o e te pro ers ro a Te e o ha e re e e o e t o trate a at o or to ether – er e thro h ooperat o ata ro ers e ha e e per e e shar a apa t e ora o or proper ta at o ersta o s ess the sa o et ee TRA se tor a TCRA a se sta sh a a e ate e a a st t t o a ra e or or the o tor o te e o at o a se o rastr t res a ata CT o Ce tre to e s re ts s sta a t
o tor The TC thro h the e t e o CT a Co at o se tor s o e a at o e pe te to o tor a TC a ate e a atters perta to o at o CT s e e te h o o a o at o
Source: e isl tions nd e ul tion olicies uidelines nu ls l ns nd est r ctices sources o
e o s use o ollec o
e e s
Appendix 1 ocu e s e e
in Appendix 2.
P s c l se o s
e o s use o l s s
use o e u
l o P ocess
uc u e o e epo
P
F F P
o uc o
e sl o
e o u c o s e ul o u o c lec o c Pos l o u c o s c o o
e e e ue u o c e e
e lec o c Pos l co u c o s ele c e ul o s o e lec o c Pos l o u c o s c
Monitor licensees’ mobile money gateways and transactions to
Pl s s e es
o l F e e e elop e Pl –
2.3.2 TCRA’s Strategies
2.3.3 TRA’s Strategies 2013/14
2.3.4 C i ati Se t r Strategi a 201 /1 2020/21
is lan artic lates trategic b ecti es s owing identi ied strategies targets deli erables ey er ormance indicators co ering i e years eriod rom to t s ows acti ities or t e omm nication ector t at need to be carried o t in order to ac ie e t e lanned ob ecti es or t e Ministry o or s rans ort and omm nication omm nication ector as s elt o t in o ernment otice o o nd ril e lan ma s o t t e strategic direction or en ancing sector res onsibility in im lementing omm nication ector olicies
2.4 e Sta e ers a t eir Res si i ities
is art o tlines roles and res onsibilities o ey layers in managing re en e collection rom elecomm nication er ice ro iders
2.4.1 Ta a ia C i ati s Reg at r A t rit TCRA
e nction o according to its establis ing ct o o and t e ct incl de among ot ers t e ollowing o collect ees rom telecomm nications ser ice ro iders o reg late rates and c arges o cons lt wit ot er reg latory a t orities or bodies or instit tions disc arging nctions similar to t ose o t e t ority in t e nited e blic o an ania and elsew ere o im ose sanctions set by reg lations or t e iolation by any licensed o erator o any law or nder t e terms o its license
n e ercising its d ties o erations as been down streamed to one le els ese ones are ort a e entral estern ig land as well as an ibar ice Management o is resented in t e organi ation str ct re s own in Appendix 3
2.4.2 Ta a ia Re e e A t rit
o erates nder ct ca and its main nctions are denti ication o ta ayers ollecting ta re en es rom telecomm nications er ice ro iders cond cting ta a dit to ta ayers cond cting trans er ricing a dit Monitoring o erseeing coordinating acti ities and ens ring t e air e icient and e ecti e administration o re en e laws by re en e de artments in t e risdiction o t e nion o ernment
2.4.3 i istr r Tra s rtati a C i ati
e roles o t e Ministry t ro g omm nication sector are olicy orm lation monitoring and e al ation reg latory and legal matters ertaining to comm nication science tec nology and inno ation
2. Te e i ati Ser i e r i ers
e ollowing is t e s mmary o roles and res onsibilities o elecomm nication er ice ro iders lication or telecomm nication ser ice ro ision license ay license ees to ay ta to bmit a dited inancial statement to and bmit ta ret rns to and and ro ide in ormation on retail tari or b ndled and o t o b ndle ser ices oice M and ata
2. Re ati s i et ee ari s A t rs
n order to ens re e iciency and e ecti e collection o re en es rom telecomm nication ser ice ro iders ey sta e olders need to com lement t eir relations i s ig re 2.1 ro ides t e relations i between t e abo e mentioned actors
ig re nter lin age between ey layers
2. a age e t Re e es C e ti
s mmary o t e rocess or managing re en es ollection is s own in ig re 2.2 and its detailed n ormation in ection below
ig re rocess or managing re en es
2. .1 e ti i ati a i e si g Ser i e r i ers
ere nder is t e rocess o a lications and licensing o elecomm nications er ice ro ider
i bmit a lication or telecomm nication ser ice ro ision to by illing a s ecial a lication orm resent in website and aying t e rele ant a lication ee ii ad ertises and see s o inions o t e eneral blic on t e a lication iii e a lications deliberated by t e oard o i e registered as telecomm nications ser ice ro iders a e a ser ice license i a e a denti ication mber
e telecomm nication ser ice ro iders s bmit t eir a lications to or consideration e a lications are disc ssed by oard o irectors w ic is re ired to meet on arterly basis Based on the board’s recommendations, licensing directorate iss es licenses to a licants ro ided t at t ey a e aid t e rele ant ees ayment o rele ant ees is done t ro g t e dealer w o to de osit t e ees into ban acco nt
2. .2 C e ti er e t Re e es
rom t e identi ied and licensed telecomm nication ser ice ro iders t e go ernment gets re en es rom two broad categories o re en e so rces namely
i e en e rom ees and enalties and ii e en e rom ta es
2. .3 C e ti ees TCRA
administers re en e rom ees as mandated by elecomm nications eg latory t ority ct
i erent inds o reg latory ees a e been im osed on s by ees di er in a n mber o material res ects incl ding
r oses, ho the are calc lated, on hom or on hich ser ices the are im osed, and hether the are rec rring or aid on a one time basis his is sho n in the eg lation ched le see the able
Ta e 2.1 Reg at r ees S/ i e se Categ ries ee T es et or acilit lication ee , nitial icense ee , ene al icense ee , o alt ee o ross nn al rno er
et or er ices ter ati a lectronic comm nications lication ee , net or o erations or nitial icense ee , net or access code and ene al icense ee , interconnection o alt ee ross nn al rno er ati a lication ee , nitial icense ee , ene al icense ee , o alt ee ross nn al rno er
lication ser ices based on ter ati a s b categories lication ee , ith et or acilities nitial icense ee , and et or er ices ene al icense ee , icenses nn al ee o alt ee B itho t et or acilities ross nn al rno er and et or er ice icenses ter ati a lication er ice icense lication ee , ith mbers nl nitial icense ee , ene al icense ee , nn al ee ross nn al rno er Source: lectronic nd ost l o unic tions icensin e ul tions o lectronic nd ost l o unic tions Act
2. .4 Re e es e te TRA
an ania e en e thorit administers ta re en e as mandated b an ania e en e thorit ct a re en es collected rom telecomm nication ser ice ro iders ere rom the ollo ing so rces
i or orate ta ii cise d t iii al e dded a i a ee a and o alties
C r rate ta
he ta rate on total income o the telecomm nication ser ice ro iders as o the ro it made b the ser ice ro ider
ise t
eans the d t o e cise im osed nder section o e cise management and tari act re iring charge, le and collection o d t , in res ect o goods s eci ied in the sched les o this act
a e A e Ta
eans the ta im osed on ta able s lies or ta able im orts, and incl des an interest, ine, or enalt a able in accordance ith the ro ision o al e dded a ct
2. . Ta a it TRA
caries ta a dit in order to test and enhance ta com liance together ith ro ision o ta ed cation on areas here the ta a ers ind necessar he roced res or carr ing o t ta a dit are elaborated belo
es or his is the stage hen ta a ditors ma e thoro gh amiliari ation on the iss es to be e amined d ring ta a diting oti ication o the entit to be a dited sends an engagement letter to noti the ta a er abo t the lanned a dit t ro ides time rame or the a dit, elaborates the ind o ta a dit e g , ithholdings, em lo ment etc de ending on the ris identi ied rom that entit administrati e e enses, assets, re en e, trans er rices de elo s its ann al b siness lan he b siness lan resents all the acti ities or the ear and highlights com anies that ill be a dited in a ear
2. . Re e es r CT
his is the re en e emanating rom data management n an ania this in ol es re en es rom the ata entre ro ect he ro ect originated rom tic iber ro ect here an ania elecomm nication or oration and the inistr o or s, rans ort and omm nication re io sl inistr o cience and echnolog in ested n this ro ect it as intended or go ernment and ri ate instit tions to se it to store their data or ass red rotection commercial basis
2. . Rate ter ati a i i g tra i s
able belo indicates the minim m ate or nternational nbo nd ra ic
Ta e 2.2 i i Rate r ter ati a Tra i . S e t atter Rate er er e tage i te S Rate Ce ts inim m ate or termination in an ania all international inbo nd incoming telecomm nications tra ic The licensees’ share of per minute of incoming call e en e to be collected b and a able to the reas r
TCRA’s service ees incl ding a ment or managing and o erating the s stem Source: tes or ntern tion l n ound r ic s er lectronic nd ost l o unic tions ele r ic e ul tions o lectronic nd ost l o unic tions Act
able abo e sho s that, the minim m rate o cents e i alent to ercent er min te or termination in an ania or all international inbo nd incoming telecomm nications tra ic as detected thro gh t o , the reg lation re ires cents e i alent to ercent as the re en e to be collected b and a able to the reas r , hile cents e i alent to ercent as the TCRA’s service fees including a ment or managing and o erating the s stem
ence orth, able indicates that the go ernment is e ected to gain a total o cents e i alent to ercent or each international call
2. . Te e i ati Re e e Ass ra e S ste TRAS
Telecommunication Revenue Assurance stem TRA as an infrastructure in Tele Traffic onitoring stem TT aimed at providing revenue assurance services
The implementation of TRA as organi ed into t o phases hase included odacom Airtel and C T hase comprised of TTC antel iettel mart mile and im a T
hase implementation as finali ed and service usages and revenues for the three operators ere visi le in the dash oard application from anuar The visi ilit of revenue statistics for odacom Airtel and C Tigo include prepaid recharges top up roaming post paid and value added services A
mplementation for hase started on th une for iettel antel TTC mile im a T and mart ngoing activities include verification of usiness rules and data structures
2. . rga i ati a C r i ati
ustaina le management of revenue collection from Telecommunication ervice roviders re uires an effective colla oration and coordination et een TRA and TCRA These t o entities must share information to enhance revenue collection from Telecommunication ervice roviders
The need to colla orate et een TCRA and TRA is critical This is ecause TRA is an e pert on the financial aspects of revenue collection hereas TCRA has etter understanding in facilitating technolog on tele traffic revenue collection assurance n that regard information from TCRA is essential for TRA hen planning and e ecuting revenue collection from Telecommunication ervice roviders
TRA and TCRA signed a emorandum of nderstanding o to enhance efficienc and effectiveness in the collection of revenues
from T s The agreement ena led TRA to get important inputs from TCRA regarding ta ation of the communication sector as TCRA as responsi le for regulating the telecommunication sector in the countr The information o tained ma facilitate improvement in the accurac of TRA to ards collecting revenue from T s
2. it ri g TC
This specific section presents the findings on the e tent to hich the inistr monitored the progress of regulating telecommunication sector in the countr The section is divided into three su sections namel monitoring the performance of TCRA section monitoring the performances of the national CT ac one TC section and monitoring the performances of the ational CT ac one TC section
2. .1 it ri g t e er r a e TCRA TC
The inistr is mandated to develop monitor evaluate implementation and revie of policies and polic instruments for proper regulation and monitoring of the activities pertaining regulation of telecommunication sector in the countr The inistr as re uired to assess hether the Authorit achieved planned results and hether corrective actions ere ta en
2. .2 e er r a e i at rs
erformance of an organi ation as evaluated using performance indicators erformance indicators ere measures of efficienc and effectiveness of the deliver of services
Communication ector trategic lan C ul – une re uired TC to develop e performance indicators to monitor the performance of the TCRA to ards achieving their o ectives for regulation of telecommunication sector This as so in order
http m tc go t pages mission and vision
2. .3 it ri g t e er r a es t e ati a CT a e t e TC
C A T R T R
TA R S C CT TRA
3.0 rea e
3.1 TRA’s tax audit plans did not adequately cover audits of Te e i ati s Ser i e r i ers
Similarly, according to ISO 9001: 2015 (Clause 4.1 and 6.1.1) TRA’s Authority’s
revealed that, TRA’s t
Ta le 3. 1 Teleco unication ervice roviders in TRA usiness plan for tax audit inancial u er of u er of T ercenta e year T ncluded in t e tax covera e audit plan 2015 16 6 4 66 2016 1 6 50 201 1 6 0 0 201 19 6 2 0 average 6 Source: Source: Extract from TRA’s database and Large Taxpayers Department bus ness p an
ased on Ta le .1, in total, or the ast our years, only 6 ercent o the TS s ere included in the Ta Audit lans. o TS as included in the ta audit lan in the inancial year 201 1 . The highest recorded coverage as 66 er cent. This as reached in the inancial year 2016 1 . o ever, the trends declined to 0 er cent in the inancial year 201 19.
According to the intervie ith TRA o icials, the selection o arge Ta ayers a lied y TRA as ris ased. o ever, the auditors ere not availed ith the documents sho ing ho TRA a lied ris ased in selecting large ta ayer to e audited in the considered inancial years. ailure to rovide the a oresaid documents as a concern as to hether the selection o large ta ayers ere not adhered to the criteria set y TRA in selecting large ta ayer to e audited.
A revie o Ta Audit Re ort or the years 2014 and 2015 revealed that, there as a variance o T S 20 illion et een AT return su mitted y IC (Tigo) and the calculation that as done y TRA. Ta le .2 rovides details o the variances or the t o years. or e am le, Ta le 3. elo resent cases o variations occurred et een the ta return su mitted y the com any and the ta amount calculated y TRA.
25
Ta le 3. : ariations et een ta reconciliation amounts et een TRA and TS ear TRA ariances reconciliation reconciliation T illion T illion T illion 2015 9 0. 9 99 2014 112 0.2 111 99 Total 209 0.5 20 ource Analysis o data e tracted rom Ta audit re ort, 2014 and 2015
Ta le .2 a ove indicates that the audit reconciliation conducted y TRA or the sales as 9 illion hile the return su mitted y IC is 0. illion. This im lies that the return su mitted y IC is 96. illion less than that calculated y TRA. According to the ta audit re ort o 2015 this amount (96. illion shillings) as su ected to the reconciliation in hich IC as as ed to re calculate and ad ust the revious igure su mitted to TRA. rom this act the audit team is o the vie that once TS remained unaudited there is a ris o losing otential ta revenue aya le..
ased on the result o the Ta Audit, TRA come u ith a variance o T S 20 illion et een AT returns su mitted and actual ta es aid. This suggests the im ortance o conducting ta audit to other TS s hich ere not audited.
3. nadequate ad erence to t e tax audit usiness plan
ased on the revie o the usiness lans and Ta Audit Re orts or the eriod rom 2015 16 to 201 19, there as a variation et een the lanned and the actual ta audits conducted. TRA conducted only 2 ta audits to TS s out o the lanned 9 in the our years under the revie (Ta le . ). There ore, it is urther noted that, TRA conducted only 2 out o 24 otential audits to TS s in the our years. This re resents 6 er cent o otential ta audits. Ta le . indicates several lanned against actual Ta Audit conducted.
26
Ta le 3. 3 lanned Audits in co parison it i ple ented Audits 1 1 1 1 inancial otential tax T s planned to e T s year audit audited audited 2015 16 6 4 1 2016 1 6 0 201 1 6 0 1 201 19 6 2 0 Total 24 9 2 Source: Analysis of data extracted from TRA’s business plan and Tax Audit Report
ased on the data resented in Ta le . it is o served that in the year o 2016 1 and 201 19 there as no TS that as audited. The t o re orted ta audits ere conducted in 2015 16 and 201 16, one in each year. The audit team conducted urther in uiry ith TRA o icials res onsi le or ta audit to determine the reason or inade uate im lementation o their ta audit lans. uring the intervie , TRA o icials e lained that, this as due to e istence o s ecial audits done in ad hoc resulting to inade uate adherence to usiness lan.
3.3 nadequate use of electronic revenue collection syste eR
According to the Ta Administration ( lectronic Revenue Collection System) regulation (201 ) num er , the Commissioner eneral o TRA as su osed to use the in ormation rovided rom the electronic Revenue Collection System. This system as e ected to determine the otential amount o ta revenue to e collected and ta es not collected y the electronic revenue collection system. The eRCS as develo ed to hel TRA veri y and ensure all in ormation concerning electronic revenue and ta ere collected and documented.
According to intervie s ith TRA o icials, TRA did not ade uately use the in ormation rom lectronic Revenue Collection System.
2
ased on the intervie s, the eRCS only o erated or one year, rom 201 to 201 . The sto age as or maintenance and, also, to u date the system to ena le it to collect ta in ormation rom an i ar or the an i ar Revenue oard. or one the year hen eRCS as not in o eration TRA did not veri y ta es remitted y Telecommunication Service roviders. ased on ta audit revie ed, a out T S 6 1. 1 illion ere aid as AT and cise uty, all o hich as not veri ied. Ta le .4 resents the unveri ied ta es rom di erent TS s.
Ta le 3. nverified AT and excise duty paid y T uly 1 une 1 S Taxpayers A ount illion s illin s 1 Airtel Tan ania u lic imited Com any 114.0 2 IC Tan ania u lic imited Com any 215. Tan ania Telecommunications Cor oration 2 . 9 4 iettel Tan ania u lic imited Com any 24.95 5 odacom Tan ania u lic imited Com any 29 . Total 1.31 Sources: TRA tax audit report for Telecommunication er ice ro iders
Ta le .4 a ove sho s that a total amount o T S 6 1. illion aid y Telecommunication Service roviders as not veri ied y eRCS. The audit noted that TRA did not have a relia le alternative system to veri y the su mitted ta es at the time the CRs as not o erational.
In addition, urther intervie s sho ed that eRCS as not commissioned to the Commissioner eneral o TRA. Thus, TRA did not have ull mandate to access eRCS. According to intervie ith TRA o icials, eRCS as under the custodianshi o the develo er o the system and there as restricted access. ecause o restricted access to the eRCS system, TRA as limited to only some revenue in ormation and had a limited time to access it. This hindered the ca acity o TRA to veri y the collected revenue online.
2
3. ontradiction et een t e data produced fro eR and TRA
In ensuring that the government collects the right amount o revenues rom telecommunication sector, TRA as e ected to e ectively use electronic Revenue Collection System (eRCS) and Ta Revenues Assurance System (TRAS) rom TCRA. This ould hel TRA to determine the correctness o the ta amount declared y the Telecommunication Service roviders. This as aimed at ul illing the re uirements o Section 4 (2) o the Ta Administration Act (2015). The section re uires the Commissioner eneral to use the est udgment and availa le in ormation in ma ing ta assessment10. The re uired in ormation as e ected to e availa le in TRAS and eRCS a ter eing u loaded y o ile et or O erators.
o ever, there ere ive telecommunication service roviders at the time o the audit. TRA conducted ta reconciliation to only one irm hich as IC Inc (Tigo). Revie o the revenue in ormation rom oth eRCS and TRAS, revealed that, the ta amount re orted y eRCS di ered rom the ta amount recorded y the TRAS. The t o electronic systems ere su osed to rovide the same results o the ta amount to e aid y TS s, ecause they all receive the same in ormation rom TS s.
The result sho ed that et een anuary and August 201 the sales igures ere higher y T S 6.6 illion. Ta le .5 elo resents the ta revenue igure ca tured y TRAS and eRCS res ectively.
Ta le 3. Revenue a ount fro eR and TRA 1 Total Revenue fro Total Revenue fro ifference ont eR illion T TRA illion T illion T anuary 9 . 92.9 0. e ruary . 0. arch 94.9 9 .5 1.4
10 An assessment o an alleged ta de iciency levied under la hen TRA elieves that delay may eo ardi e the collection o the claim. 29
Total Revenue fro Total Revenue fro ifference ont eR illion T TRA illion T illion T A ril 5.2 4.5 0. ay 90.5 9. 0. une 94. 94. 0 uly 9 .4 94 0.6 August 96.1 94.5 1.6 T TA 3 . . Source TRA Reconciliation extracts
ased on Ta le .5 the discre ancy in sales igures re orted in the eRCS as higher y T S 6.6 illion. TRA had to reconcile ith IC (Tigo) to ensure that the right amount o ta as aid. The noted uestiona le integrity o revenue data in terms o inaccurate data et een the t o systems used y TRA, has a ected TRAs ca acity to determine the correct revenue amount that as su osed to e ta ed.
3. nadequate usa e of infor ation fro TRA
ased on Section 4 (5) o the signed o et een TRA and TCRA, oth arties ere re uired to urnish one another re orts, records o evidence or certi ied co ies o documents giving all availa le in ormation on transactions, com leted or lanned hich are considered to e use ul or the com utation o ta es. TRAS as develo ed y TCRA or the ur ose o hel ing TRA get assurance on the ta return su mitted y TS s. TRAS as relevant to TRA ecause it could e used to veri y the authenticity and assurance o the e act amount o ta to e aid y TS s.
ased on the intervie ith TRA o icials, TRA as not e ectively using the in ormation rom TRAS to ensure correctness the ta returns rom TS s. on urther en uiries, the audit team noted that, one o the reasons as that, TRA did not meet all the technical and technological uali ications to smoothly access and run TRAS indo hich as ased at TCRA. S eci ically, TRA did not have enough and idth and server storage ca acity to allo them to e a le to ull large iles rom the system in a short time.
0
In addition, slo internet at TRA increased the chances or the system to o erate elo its designed ca acity.
1
A T R R
A T TA R T T RA
This cha ter resents indings on the er ormance o TCRA to su ort TRA to enhance ta revenue collection rom Telecommunication Service roviders. The indings cover ea nesses in the area o com liance trend records or TS s, monitor the revenues rom OTT Services, measuring the economic im acts o OTT y TCRA and regulating Country’s Main Optical i er ( ICT ).
.1 o pliance trend records are not ana ed ell
According to the lectronic and ostal Communications Act o. o 2010, and uality anagement Standards (ISO 9001:2015). TCRA as e ected to document the trends o er ormance o TSPs’ compliance with regard to licenses re uirement achievement such as uality o services rendered to su scri ers, ayments o fees and penalties issued by TCRA. This information of TSPs’ er ormance could originate rom research or survey re orts, ins ections results, re orted incidents and com laints or any in ormation that could cause the ris o non com liance to rise.
ased on revie ed ins ection re orts, it as noted that the com liance levels among the service roviders varied among the service roviders. Com liance level or o ile et or O erators ( Os) in ee ayments as relatively higher than the com liance level o Internet Service roviders (IS ).
o ever, it as di icult or the Audit team to ascertain the re uency and trends o the com liance o each TS s. The records o the er ormance o TS s ere not ased on the listed arameters in the ins ection chec lists. As a result, the assessment o the e ectiveness o the en orcement as made di icult. ased on the intervie s, it as revealed that, TCRA
2
assesses the effecti eness of enforcement by chec ing the impro ement of the ser ice rendered by ser ice pro iders .
. T RA set up a syste of sanctions for enforce ent of t e license
The sanction for defaulters of the license conditions co ered arious steps. The audit noted that TCRA issues both soft penalties and hard penalties. Table . presents the fre uency and type of action ta en to non compliant TSPs. t can be noted that iolations of laws and license conditions were common. amples of different non compliance cases including the failure to comply with uality of ser ice pro ision as re uired as well as delay or non submission of the ser ice compliance parameter reports. Table . below depicts action which was applied by TCRA to defaulters.
Ta le . 1 Applied sanctions accordin to T RA Type of action requently Rarely ever erbal Criticism
arnings ritten arnings
Arbitration at the fair competition tribunal Penalties and fines for non compliance Termination of license
Round table dialogue egal actions TCRA acting as mediation between licensee and customer Source: T RA – studies of compliance documents and nter ie by auditors
ut impro ement could t e contributed by many ot er factors ases rendered poor uality of ser ices to customers cases rendered poor uality of ser ices to customers
Table . shows that TCRA fre uently applied written warnings against ser ice pro iders who failed to meet license conditions. TCRA had ne er terminated a TSP license. According to an inter iew with officials from TCRA during the second uarter about letters were sent to operators to remind them to comply with arious license re uirements. owe er the audit team did not find any e idence of written reminders.
ased on the inter iew with TCRA officials there was no analysis of the compliance trend of each licensee. One of the causes of the lac of such analysis is because there were no guidelines to determine the performance trend. Conse uently this ma es TCRA unable to assess the effecti eness of the enforcement measures.
According to an inter iew with TCRA officials TCRA was de eloping a new enforcement guideline at the time of this audit. This draft guideline ey Performance ndicators had also been de eloped. owe er the guideline was yet to be appro ed and operationali ed. This guideline was e pected to minimi e the ris of the generali ed model of conducting and reporting the compliance le el.
The re iew of the established ey inspection performance indicators for enforcement found to be ague as it only re uires production of inspection reports for each uarter. The achie ements was therefore pegged on the number of reports generated rather than the content of the reports. The established ey Performance ndicators P therefore they do not reflect the performance in terms of compliance.
.3 eterrent penalties ere not adequately applied
ased on an inter iew with TCRA officials penalties are instituted based on the e isting regulations. n enforcing compliance with the license conditions it was noted that some operators did not pay penalties on time. or e ample TTC was penali ed to pay T S million for the delay of paying the penalties. This penalty was because TTC did not meet the re uirement and obligation of the
license. On the other hand in TCRA fined si mobile companies for noncompliance with the license conditions. Table . presents different amounts of charges paid. ased on inter iews most of the TSPs were able to pay the issued penalties.
Ta le . Action ta en y T RA for non co pliant S o ame of TSP Penalties T illion Airtel . TTC . alotel . antel . Tigo . odacom . Total .
. T RA did not onitor revenues enerated fro TT ervices
n response to technology changes TCRA annual performance report of the financial year of Clause . indicated that there was a rapid growth of mobile broadband technologies. These changes had been coupled with the increase penetration of smartphones. This resulted to the raise of O er the top OTT ser ices such as te t messages and internet telephony ser ices. t was e ident that OTT ser ices continue to affect oice and SMS re enues of traditional networ s.
n response to these technology changes TCRA is re uired to ma e rules for carrying out the purposes and pro isions as per Section b of Tan ania Communications Regulatory Authority Act being its establishment Act for sector legislation.
ecause of the abo e situation through its annual performance report TCRA recommended two options on how OTT ser ices could be charged. One is for TSPs to introduce specific bundles and tariff plans for charging OTT ser ices and the second
option was to deploy a specific module in TTMS for monitoring OTT traffic ser ices and introduce surcharges on OTT ser ices.
p to the time of this audit only one TSP introduced surcharges on OTT ser ices while the remaining TSPs did not introduce surcharges on OTT ser ices. ased on the inter iewed TCRA officials the module for monitoring OTT was relati ely e pensi e therefore before embar ing on applying it TCRA needed to conduct a cost benefit analysis of it and the method of operation without discouraging the business of the TSPs. n addition the audit noted that TCRA initiated the introduction of the lectronic and Postal Communications Online Content Regulations ta ing correcti e measures for ob ectionable or prohibited content among other obligations. owe er TCRA did not trac re enues influenced by OTT.
n addition TCRA statistics indicated that there was an increase in internet users o er years from million in year to million users in . These internet users also use data for applications and ser ices which are accessible o er the nternet and ride on operators’ networks (OTT). Thus the declining demand for traditional oice and te t messaging ser ices could be counterbalanced by increasing demand for data. owe er TCRA did not establish a trend to see the relationship between oice and te t messaging re enue loss due to OTT ser ices and growth of data re enue due to proliferation of popular OTT ser ices.
The OTT applications include applications for media ouTube real time communication S ype iber hatsApp cloud computing storage ropbo social media aceboo e commerce e ay and online gaming. ecause of lac of effecti e regulation of OTT there was a ris of potential re enue loss due to uncontrolled OTT.
The audit re iewed a trend of international calls between last uarters of the year and . The result indicated a notable decrease in international traffic for calls and short message
ser es ( ) etween ear an t e ear as s own n res . .
ears
re . e rease n tra t ona nternat ona a s Source: Auditor analysis of data from TCRA’s Quarterly Communications )
re . n ates t at ro to t e tren o tra t ona nternat ona a s as s n ant e rease . or e a p e n t e ast arter o nternat ona a s were on w was roppe to on a s n t e ast arter o (a e rease o ). T ese a s o pr se o a s ter nate n Tan an a an on trans t a s t ro Tan an a.
T e res ts ro t e resear one T s owe t at e rease o on nternat ona a s was part ontr te t e rowt o OTT app at ons. a ers opte to se OTT app at ons to ake nternat ona a s nstea o o e a s.
T e a oresa e rease n nternat ona a s w e ent a ea to a r sk o oss o o ern ent potent a re en es ro a s. T e o a s state t at w t t e e st n too s T was na e to o p te t e onetar a e ro t ese a s. n opt on to se
esear report ( )on Te e tra re ate ss es pa t o t e o er t e top (OTT) app at ons
OTT to ake nternat ona a s ena e t e re en e enerat on ro ata nstea o a s.
. fforts ade y T RA on dealin it econo ic i pact of t e TT
T e a t s te T to eter ne t e e tent to w T a p e ente t e ra ework t at ens re on tor n o nternat ona n o n Tra . t was o n t at T p e ente T T on tor n ste (TT ) n a or an e w t Tan an a o n at ons ( nter onne t on ates eter nat on o. o ) ot e ( ). T s was o owe t e e tron an osta o n at ons (T T ) e at ons ( ). so a or n to nternat ona Te e o n at on n on ( T ) e er n te no o ro t app at ons an ser es t at n en e new e ono o er t e nternet. T s res te nto e sten e o app at ons an ser es w were accessible over the Internet and ride on operators’ network. T ese are also termed as “Over t e Top” (OTT) n n OTT ser es t at enerate tra on e an o e networks n erent ate or es as on as t ere s nternet. T ese OTT ate or es were o n at on ( k pe ats pp) rea t e enterta n ent ( et o T e) an so a network n ( a e ook Tw tter nke n nsta ra ). Ot ers OTT ate or es were arketp a es or own oa s ( pp e T nes oo e a on) an stora e ( rop o oo e pp e). T ese OTT were o ere s n t e e st n n rastr t re o tra t ona te e o n at ons ser e pro ers a s n a en es n t e tra t ona nternet e os ste .
o ow n t e rowt o OTT app at ons t ere as een a o a on ern o er t e pa t o OTT ser es on t e re en es o network operators as state nternat ona Te e o n at on n on ( T ) . T s was e to t e reason t at t ese OTT ten to s st t te or s pp e ent tra t ona te e o n at on ser es.
nternat ona Te e o n at ons n on T e at on Too k t ( )
This res lts to e istence o re lator imbalance as there as lac o direct and clear re lation on OTT
rin the intervie ith T o icials it as stated that several initiatives ere made b T to nderstand the impact o OTT One o these initiatives as a research cond cted on T T I iss es a ected b OTT in relation to international incomin telecomm nications tra ic
The a dit team ac no led es that in T carried o t this research and identi ied some e ects o OTT to the econom and partic larl on reven e T o icials stated that other e ects o OTT on tra ic incl de declinin demand or traditional voice and te t messa in services and increasin tra ic load evie o this research noted that the research conducted didn’t capture the in ormation on act al e ects o OTT voice termination It as stated b T o icials that T planned to cond ct another research in inancial ear so as to et the act al e ects o OTT termination in net or s o re lated T s so as to improve TT as these iss es ere not covered in the previo s research
A T R
R AT A T R T AT R
.1 ntroduction
his chapter presents indin s on the oordination and onitorin o e eco unication er ices t a so descri es the e tent the onitored per or ance o in re u atin te eco unication ser ice pro iders to he p re enues co ection ro e eco unication er ice ro iders e o are the detai s o the indin s
. oordination
his section presents indin s on the coordination et een and he indin s co er sharin o re enue in or ation data e chan e e perience sharin and capacit ui din on the issues that a ha e an i pact on the co ection o re enues ro te eco unication ser ice pro iders
. .1 oordination for s arin Revenue infor ation as not ana ed ell
t as e pected oth parties to ha e a certain arran e ent or a co on p at or or eetin and sharin in or ation
nter ie s ith o icia s indicated that there ere no p anned or a eetin s o e er the in or ation as shared on ad hoc asis and hen encounters pro e s
ccordin to o icia s it as the ro e o to spearhead the coordination eadership ecause it is ho are ore in need o ta data hereas ou d ocus on the re u ator ro e or s and co ects re enue in or ation he audit urther noted that since the o as not e a indin it re ained at a o e e o co p iance
. . T e existin e orandu of nderstandin as not updated ti ely
ara o the o et een and re uired the o to e a ended re u ar to acco odate ne de e op ents his inc udes ne ser ices and products pro ided s o e er the re ie o o as e as the inter ie ith o icia s ro and re ea ed that the o has ne er een re ie ed since its esta ish ent on anuar
he audit noted that the chan es in re u ations in e eco unications ra ic onitorin e u ations ou d auto atica necessitate updatin the o to acco odate the chan es hich are direct re ated to re enue co ection ro s ince there ere no or a i ed sessions to assess the status o in or ation sharin a ree ent it as eas to o er oo i portant issues o the o
. .3 neffective i ple entation of t e e orandu of nderstandin
ccordin to inter ie s ith o icia s ro oth and the audit tea ound out that the ter s and conditions o the o ere not i p e ented ade uate uch ter s inc ude the re uire ent o data e chan e e perience sharin and capacit ui din he ea nesses are as e p ained e o
i. ata exc an e
t as a re uire ent o the o that the t o parties shou d urnish each other o co unication ser ices products or arran e ents hich ere i e to a ect ta ation o re enues ro the te eco unication sector o e er inter ie s ith o icia s ro and re ea ed that neither nor docu ented ists o aspects o co unications ser ices products or arran e ents that ere i e to e the su ect o a use that cou d a ect ta ation ac o or a i ed co unication the
t o parties ea ened the understandin o ris identi ication et een and
ii. nadequate experience s arin and capacity uildin
he o re uires sharin o in or ation on or procedures or the purpose of advancing skills and understanding of each other’s procedures and techni ues ithin i its o their ena in a s
he audit noted that sta did not ha e ade uate s i s to operate t as noted that asic trainin conducted to sta as done in here sta ere trained hen as insta ed or the irst ti e o e er the other trainin as conducted to sta to ad ance their no ed e in usin
ccordin to o icia continued trans er o sta ithin a so a ected the per or ance and operation o ost o the sta ho ere trained ere rea ocated or shi ted to other depart ents his shi tin as not proper done ecause no trainin as ade to the ne e ers
urther en uiries re ea ed that s o internet connection a so contri uted to ine ecti e use o at he inter ie ed o icia s ad itted that the ere discoura ed to use indo ecause o re uent internet disconnections s an a ternati e sta ou d ph sica o to ith an e terna hard dis or ash disc to do n oad the ta data onse uent did not re uent use or the assurance o the ta returns su itted s
.3 onitorin y T
o unication ector trate ic an u – une re uired to de e op e per or ance indicators to onitor the per or ance o the to ards achie in their o ecti es or re u ation o te eco unication sector his is so in order to assess the de ree to hich te eco unication sector is re u ated
his s ecific section resents the findings on the e tent to hich the onitored the erfor ance of in the regulation of teleco unication sector in the countr he section is su divided into three su sections na el strategies for onitoring the erfor ance of ke erfor ance indicator for onitoring the erfor ance of and onitoring of country’s main optical fiber (NICTBB)( 5.3.3) .3.1 ac of strate ies for onitorin t e perfor ance of T RA
did not have strategies for onitoring the erfor ance of in the regulation of teleco unication sector his as ackno ledged its o unication ector trategic lan of ul – une hich sho ed the need to develo onitoring and valuation ste on e istence of this s ste inhi ited the inistr to onitor activities of the inistr as ell as entities under this inistr such as evie of indicated that the inistr as lanning to design and o erationali e its onitoring and valuation ste une
.3. ac of ey perfor ance indicator for onitorin t e perfor ance of T RA
erfor ance of an organi ation as evaluated using erfor ance indicators erfor ance indicators ere easures of efficienc and effectiveness of the deliver of services he est ractice re uired to develo ke erfor ance indicators to onitor the erfor ance of the to ards achieving their o ectives for regulation of teleco unication sector his as so in order to assess the degree to hich teleco unication sector is regulated
o ever the revie of the onitoring lans of the the audit tea noted that the inistr des ite eing the overall overseer of i le entation of regulating teleco unication sector has not develo ed erfor ance indicators hich could have een used as guidelines for onitoring the erfor ance of s ecificall in the teleco unication sector
The impact of not monitoring TCRA’s performance specifically in re ulatin t e telecommunication sector as t at TC lac e ell analy e information to enable t em to ta e proper actions or ecision. TC as also not able to assess t e systems for actual performance of TC base on actual input of resources in ecte in t e acti ities for re ulatin of telecommunication sector activities against the actual output resulting from TCRA’s re ulatin acti ities.
lso because of t e aforesai situation abo e as ma e t e inistry to re ularly consult TC en in nee of any performance information to report to sta e ol ers o see TC information from t e inistry.
.3.3 onflictin nstitutional ra e or in onitorin of Country’s Main Optical Fiber (NICTBB)
ccor in to ection ( ) (c) of Tan ania Communications e ulatory ct ( 3) TC is responsible for re ulatin t e communication sector. T is inclu es t e ain ptical iber. ccor in to ection ( )(c) re ulation co ere monitorin t e performance of t e actors it in t e telecommunication sector.
T e re ie of t e National ICT Bac bone Business lan ( 3) s o e t at t e o ernment mana e ain ptical iber t rou TC. T e inistry ele ate operational mana ement of t e ain ptical iber to TTC ic establis e National ICT Broa ban Bac bone (NICTBB) as its unit. T e main ob ecti e of NICTBB as to pro i e infrastructure connection to telecommunications ser ices in t e country inclu in TTC .
o e er t e au it note t at t is institutional setup a conflicts as reflecte in t e follo in scenarios firstly TC bein responsible for re ulatin telecommunication sector cannot e aluate t e performance of its parent inistry an secon ly TTC bein a ser ice pro i er in t e telecommunication sector is
not e pecte to fairly compete ith other T s that receive ata services from TTC through the ptical i er
C T I
CONC ION
This chapter provi es the eneral conclusion an specific conclusions The conclusions are ase on fin ings outline in chapters an The focus areas for conclusion are ta collection y TRA enhancement of ta collection y TCRA coordination between TRA and TCRA’s functions as well as monitoring y TC
eneral Conclusion
The telecommunication in ustry is crucial as it affecte other sectors The technologies that enhance this sector are changing at a high spee of innovations everything is happening at a much faster pace The fin ings presente in this report en orse that there are loopholes that oul lea to loss of government revenues from the Telecommunication ervice rovi ers T oth the Tan ania Revenues Authority an Tan ania Communications Regulatory Authority ere not a e uately ensure that revenues from T are effectively collecte The au it i entifie several aspects re uiring attention an improvements to enhance revenue collection from T
e note that TRA has o nplaye its role of ta collection from T s TRA responsi ility of ensuring that ta au it is con ucte to all T s as exercised at a minimal level. TRA’s plans for tax audit for the year e clu e the au it of T s As such no T as au ite in the years an TRA is uncertain a out the amount of ta collecte from T This is ecause TRA oes not effectively use the electronic Revenue Collection ystem eRC an Telecommunications Revenue Assurance ystem TRA as relia le sources of information to reconcile the su mitte ta ata from T s
n the other han ase on presente fin ings TCRA an TRA have not effectively or e together to enhance collection of ta
revenue from all T s usin TRA . uc effort is needed b sta e olders in dealin wit c allen es associated wit ver t e Top applications TT . f t e TT problems are not solved immediatel t is is li el to a lar e extent contribute to possible loss of overnment revenue.
peci ic conclusions
e enue Collection by T
lannin an i ple entation o Ta au it plans
Tax audit is a crucial exercise re uired to be done b TRA to ensure t e certaint of t e tax to be collected from T s. owever TRA is not ver active in conductin re ular tax audits to T s. urin t e four ears under review TRA audit plans to a reater extent did not include all t e T s. ven in t ose ears in w ic T s were included in t e plans t e plans were not implemented as approved since alf of t e T s in t e plan were not audited. T e impact of tax audit can be ver positive. n one of t e conducted tax audits to a T TRA establis ed an amount of T billion as a variance between tax return submitted b a T and TRA tax audit fi ure.
se o electronic re enue collection syste (e C )
T e electronic revenue collection s stem eRC is one of t e best reliable sources of interconnection for TRA to verif t e amount of tax to be paid. owever TRA did not effectivel use t e eRC to verif t e pa able taxes. n t e financial ear of about T s. . billion w ic was part of AT and xcise ut paid b T was not verified t rou eRC .
Inconsistency bet een ata pro uce ro e C an T
e noted a variation in sales information from electronic Revenue Collection stem eRC and Telecommunication Revenue Assurance stem TRA . T is resulted into li e ood of losin
potential revenue from T s or failure to et revenues on time due to dela of reac in a reement on t e actual amount to be paid b T .
sa e o in or ation ro T
TRA does not alwa s use TRA to verif t e amount of revenue from T . T is implies t at t e verified amounts are li el to be unrealistic.
n ancin e enue Collection
TC ac e co pliance tren recor s
TCRA as ood practice to document compliance of T s. owever it was difficult to assess t e effectiveness of t e enforcement. T is was partl because t ere is no simplified anal sis of t e compliance status of eac licensee as a result it is not eas to ascertain t e level of compliance for eac licensee.
TC oes not a e a o ule to onitor OTT er ices
T e su ested TCRA recommendations on ow to c ar e TT services were not implemented. nl one T introduced specific bundles and tariff plans for TT services and t ere is no specific module for monitorin TT traffic services t at as been deplo ed. n addition t e increasin number of internet users and t e noted si nificant decreasin trend of bot traditional nternational calls and ma pose a si nificant ris in terms of revenue eneration if not ade uatel monitored.
e ulatin National ICT Broa ban Bac bone
The country’s National ICT Broadband Backbone is bein mana ed b t e inistr of or s Transport and Communications. TTC as been iven t is bac bone to implement and maintain it. TC bein t e main overseer of t e telecommunication sector ma es it difficult for t e inistr to be re ulated b TCRA. ince TCRA does
not re ulate NICTBB it has a ected business co etition a on teleco unication ser ice ro iders and conse uently re enue enerated in the National ICT Broadband Backbone
d inistration o NICTBB is not done airly to all T s In the current ad inistration setu TTC is a reci ient o ser ices ro NICTBB and it is also the ser ice ro ider to other T s
Coor ination bet een T an TC
Coordination bet een T and TC in sharin in or ation that are likely to be the sub ect o abuse that a ects ta ations ro T as not ade uate To so e e tent this as because o lack o leadershi to coordinate in or ation sharin bet een T and TC
Monitorin t e er or ance o TC by M TC
The inistry o orks Trans ortation and Co unication TC did not ade uately onitor the er or ance o TC in re ulatin teleco unication sector to enhance re enues collection ro T s The a ailable onitorin lan has no key er or ance indicators or easurin the er or ance o TC
C T N
IT COMM N TION
Intro uction
The National udit ice considers that the reco endations ro ided in this re ort need to be ully i le ented in order to i ro e re enue collection ro Teleco unication er ice ro iders The reco endations are directed to T TC and TC
eco en ations to Tan ania e enues ut ority (T )
To ensure e ecti e collection o ta re enues ro all Teleco unication er ice ro iders T should
I ro e its risk based audit a roach to ensure all risky lar e ta ayers audit lans and conse uent audits include Teleco unication er ice ro iders T
llocate its resources bud et hu an resource ti e and re uired e ui ent or ta audit or auditin all Teleco unication er ice ro iders each year
eri y and reconcile all sub itted ta returns by usin reliable established syste s such as the lectronic e enue Collection yste e C and Teleco unications e enue ssurance yste s T
nsure that the Co issioner eneral has ull access to the lectronic e enue Collection yste e C as re uired by the Ta d inistration lectronic e enue Collection yste e ulations o
ocu ent in or ation co unication ser ices and that are likely to be the sub ect o abuse o ta re enue
nsure that it e ands its ser er stora e ca acity and net ork band idth to be able to connect and store lar e iles o re enues ro Teleco unication er ice ro iders
Carry out a thorou h analysis o the skills a a on its sta ho are res onsible or usin Teleco unication e enue ssurance yste s T or ta re enue eri ications and enhance their kno led e throu h re ular trainin
nsure it ully adheres and e ecti ely i le ents all the a reed ter s in the e orandu o nderstandin bet een itsel and TC and utili e the a ailable in or ation or collection o su icient re enue
eco en ations to Tan ania Co unications e ulatory ut ority (TC )
To ensure that Ta re enues are e ecti ely collected ro Teleco unication er ice ro iders TC should
stablish a co liance le el or all teleco unication ser ice ro iders
nsure it identi ies ossible o ortunities or re enue collection ro o er the to TT a lications and ser ices
Carry out re ular studies in order to co e u ith the best echanis or dealin ith o er the to TT a lications ith a ie to enhance re enue collection and
tren then collaboration ith T by ensurin there are re ular reconciliation eetin s in order to hel T collect all ri ht ul re enues ro Teleco unication er ice ro iders
eco en ations to Ministry o or s Transport an Co unications (M TC)
To ensure that TC e ecti ely onitors the er or ance o TC in re ulatin teleco unication sector to ards enhancin re enue collections TC should
e elo onitorin and e aluation indicators or re ulatin the er or ance o TC in re ulatin the teleco unication sector
nsure that TC adheres and e ecti ely i le ents all the a reed ter s in the e orandu o nderstandin bet een itsel and T to acilitate e ecti e collection o ta re enue
nsure there is an institutional setu or le al establish ent o NICTBB as an autono ous se arate entity to acilitate its re ulation and eli inate con licts o interest
F NC
nnual business lan o sections ro de art ent T de art ent at T htt tan aniain est co obile oney htt tan aniain est co obile oney TC Co unication ector Co unication ector onitorin and aluation ra e ork T orth cor orate lan T trate ic lans or the eriod o – or T T TC ction lan and Bud et T Co unication ector trate ic lan uly – une T National ICT olicy T National ICT olicy I le entation trate y URT (2016) Report called “Tanzania e enue ro th to be under inned by obile Net ork ansion into ural Areas”. Read more at: htt s tan aniain est co teleco s tan ania teleco re enues ro th orecast to reach usd billion by T TC ction lan and Bud et T TC trate ic lan T TC uarterly e orts ril une and T nnual ction lan Cash lo or TC T o and lannin bud et s eeches T arlia ent Bud et eeches and ansards on Ta issues T TC ction lan and Bud et T nnual ction lan Cash lo or TC T TC ction lan and Bud et T TC nnual er or ance e ort or inancial ear T TC onitorin o I le entation o trate ic lan tcra o t
N IC
ppen i ist o inter ie e o icials an reasons or inter ie N Or ani ations erson to be easons inter ie e 1 inistr o or s irector o olic To et in ormation on t e Transportation and lannin e tent at ic t e and irector o T monitor per ormance o TRA omm nication on iss es relatin to controls in re en e collections 2 TRA ommissioner and To et eneral ep t nderstandin o controls ommissioner o or re en e collection ar e Ta pa er a aila le t e respecti e epartment departments and t eir associated c allen es
icials rom ar e To et eneral Ta pa ers nderstandin o application epartment. o proced res in re en e collection rom telecomm nication ser ice pro iders and t eir associated c allen es
ana ers o Ta To et in ormation on t e a dit e tent to ic ta a ditin nternational and assessment as Ta ation and e ecti e in controllin Ret rn and ata re en e collection rocessin o allen es acin Ta ar e Ta pa ers in esti ators epartment irector o Researc irector o T ta rom nternal T e et t eir ie s on t e A dit epartment e ecti eness o controls in re en e collection rom telecom ser ice pro iders To et t eir relatin to controls on re en e collection t at t e a e identi ied in t eir ro tine a dits. T RA irector o Understandin t e role o nd strial anal sis T RA in monitorin re en e collection rom
N Or ani ations erson to be easons inter ie e Telecomm nication er ice ro iders (T s)
ead o To et t e in ormation n orcement a o t en orcin t e compliance to ens re e ecti e re en e collection rom T s
ead o ons mers To nderstand t e nat re o complaints compliant ro t to T RA
irector o Understandin icensin implementation o licensin proced res
6
ppen i ist o re ie e ocu ents an reasons or t e re ie s Na e o t e ocu ent eason or re ie in t e ocu ent oc ments rom TRA Ann al siness plan o sections To et in ormation on tar et in rom R department T relation to re en e collection rom department at TRA telecomm nication ser ice pro iders. trate ic plans or t e period o To denti strate ies set to en ance 201 2016 – 201 2020 or TRA re en e collection rom telecomm nication ser ice pro iders. trate ic plans or t e period o To et in ormation on tar et in 2016 1 – 2020 21 relation to non ta re en e collection rom telecomm nication ser ice pro iders. To denti strate ies set to en ance non ta re en e collection rom telecomm nication ser ice pro iders. iled A dit siness lan To nderstand t e e tent t e ta a dit or ar e ta pa ers co ers telecomm nication er ice ro iders Ta a dit report To identi n m er o Telecomm nications er ice pro iders t at a e een a dited in a i en inancial ear TRA’s Performance reports To o tain in ormation on per ormance o re en e collection rom telecomm nication ser ice pro iders control process. TRA’s Performance reports To o tain in ormation on per ormance o re en e collection rom telecomm nication ser ice pro iders control process. T monitorin reports o T RA To et in ormation on o o ten acti ities T monitors re en e collection in t e co ntr to ario s re en e collection entities.
ppen i TC Or ani ation tructure
ppen i etaile Main au it uestions it sub uestions
Nu ber uestion
u it To at e tent oes T collect all ta re enue ro uestion Teleco er ice ro i ers A t To at e tent t e ta a t one TRA s p anne ase est on on r s assessment A t oes TRA effect e se t e Te ecomm n cat on Re en e est on Ass rance stem TRA for mon tor n ta amo nt to e pa te ecom ser ce pro ers A t oes TRA ens re t at re en e capt re TRA ta es t est on re en e reporte s m tte f nanc a statements te ecomm n cat on ser ce pro ers A t oes TRA se ata from TRA for esta s n ta ase an est on sett n tar et for ta co ect on
A t oes TRA operat ona staff a e capac t T no e e est on nfrastr ct re an f nanc a to operate TRA
A t oes TRA con ct t e n entor of Te ecom er ce est on Pro ers to esta s a pro ect on of re en e co ect on
A t o TRA mon tor n an e a at on p ans pro e nformat on est on on performance of re en e co ect on from Te ecom er ce pro ers
A t oes TRA reac ts re en e co ect on tar ets from Te ecom est on ser ce pro ers
A t oes TRA ta en re re act ons to mpro e eff c enc an est on effect eness of re en e co ect on from Te ecomm n cat on ser ce Pro ers
u it To at e tent oes TC collect all non ta re enue uestion ( ees an penalties) ro Teleco er ice ro i ers
A t oes T RA p ann n too s trac pa ment of fees an est on pena t es to e pa te ecom ser ce pro ers
A t oes T RA mon tor n too s capa e to capt re an o er t e est on top TT app cat on ser ces
Nu ber uestion
A t oes T RA app pena t es an ot er eterrent act ons est on a a nst Te ecom service providers’ offences to enhance re en e co ect on
A t o T RA mon tor n an e a at on p ans pro e est on nformat on on performance of re en e co ect on from te ecom er ce pro ers
A t oes T RA ta e re re act ons to mpro e eff c enc an est on effect eness of re en e co ect on from Te ecomm n cat on ser ce Pro ers
A t oes T RA a e nformat on t nee s from n est on er f cat on s stem re ar n potent a re en e from te ecom for s c ar es
A t oes T RA con ct t e n entor of te ecom ser ce est on pro ers to esta s a pro ect on of re en e co ect on
A t oes T RA access Billin eri ication syste ene er t est on nee s to a t c ar es c an es from te ecom ser ce pro ers
A t oes T RA con ct t e n entor of te ecom ser ce est on pro ers
A t To at e tent oes T RA fee pa ers n entor ena es t to est on est mate re en e co ect on from te ecom ser ce pro ers A t To at e tent oes T RA mon tor performance of est on mon tor n an too s TT etc A t To at e tent oes T RA reac ts re en e co ect on est on tar ets from fee pa ments Te ecom ser ce pro ers A t re t ere an e ecti e coor ination bet een TC an est on T to ensure t at all controls or re enue collection ro Teleco unication ser ice pro i ers unctionin ell
Nu ber uestion
dit oes the e istin infor ation sharin fra e or et een estion and f nctionin e for eas co ection of reven e fro te eco nication service providers dit o hat e tent does the e orand of nderstandin estion et een and cover a aspects need for enhancin reven e co ection fro e eco nication service providers dit o and ens re that the e orand of estion nderstandin et een the is effective i p e ented
dit oes M TC con uct a close onitorin to t e estion per or ance o TC to ensure t at all re enue ro teleco ser ice pro i ers is collecte dit oes the ens re the e istin coordination estion arran e ents et een and s pport the co ection of a reven e fro e eco service providers dit oes the ens re that the ro es and responsi i ities estion assi ned to and tro h o are adhered to are there an indication of iss es of d p ication and over appin responsi i ities et een and
dit o hat e tent does the e istin e a and instit tiona estion fra e or ens re enhanced reven e co ection fro te eco infrastr ct re data and services
ppen i Or ani ation tructure or Ministry o or s Transport an Co unication
ppen i T e electronic an postal co unications ( uality o ser ice) re ulations
a it of service para eters for p ic s itched te ephone net or services
i in c sto er services satisfaction eas res sto er satisfaction attri tes a it of service para eters for o i e te ephone services ervice a it attri tes for voice over te vo te services i in c sto er service satisfaction eas res
a it of service para eters for c sto er satisfaction attri tes nternationa te ephone services nternet services osta services ontent services a it of service para eters for o i e te ephone services
ara eter et or avai a i it oint of interconnect poi con estion a connection fai re rate a drop rate a set p ti e sec a i ti e ta en for voice service connection ervice covera e oice a it ean opinion score os Call success rate (csr) ≥ 95 % Handover success rate ≥ 98 % vera e data rate for pac et data ps in ro nd trip ti e s data ttach fai re ratio Attach setup time ≤ 5 sec service accessi i it access delay ≤ 2 sec completion failure ratio ≤ 2 % end to end de iver ti e
ara eter e istration s ccess rate rate of s ccessf re istration atte pts in the o te service ervice avai a i it end to end service avai a i it in ter s of capacit to esta ish ca s fro and to a vo te c sto er ost dia in de a
ppen i esponses ro t e u ite ntities
ppen i (a) esponses ro t e T
O erall Co ents (s)
one
peci ic esponses ro Tan ania e enues ut ority (T )
CTION TO B COMM N TION COMM NT( ) TIM IN N T N
oted for o contin e e t i p e entation inc din nn a prove its ris e eco nicat e eco nicat siness ased a dit approach ion co panies ion co panies an to ens re a ris nder ar e in the ann a in ne ar e ta pa ers a dit ta pa ers are a dit p an and p ans and a a s inc ded a e s re the conse ent a dits in the a dit a dit starts at inc de an hen a the e innin of e eco nication e eco the fisca ear ervice roviders co pan as to ini i e not inc ded in scenarios of the a dit p an over appin to the ta pa er other fisca as either nder ear investi ation nvesti ation epart ent or pecia ea
CTION TO B COMM N TION COMM NT( ) TIM IN N T N
ocate its reso rces oted for o e race n oin d et h an i p e entation “mock” auditing reso rce ti e and inancia of te eco re ired e ip ent reso rces are ta pa ers so as for ta a dit for a ocated ased to aintain a ditin a on an ctivit consistenc in e eco nication ased d et app ication of ervice roviders for each ta a s and each ear ear n ter s of i part h an capita no ed e to reso rces there staff as part of is sti a entorin and re ire ent of coachin to s fficient i d capacit n er and s i ed staff to a dit the sector fro ti e to ti e and ore ti e and e ip ent i e a ocated to a dit the sector
erif and reconci e oted for o contin e onth a s itted ta i p e entation sin e and ret rns sin or the period in the re ia e esta ished hen e as onth s ste s s ch as the in se the e ercise of ectronic even e a o nt of sa es vettin ret rns o ection ste reported on e and ret rns e eco nications is as per even e ss rance sa es recorded ste s ectronic even e o ection ste e he tea nder e does onth reconci iation efore pa ent of
CTION TO B COMM N TION COMM NT( ) TIM IN N T N
ut u t mo t amount o ta com ut d and aid i g n at d it out uman int ntion
n u t at t comm ndatio o iai it it in o a n a n t m and ing o to t not d o d o to ommi ion im m ntation and o t n a t t m to ou ct onic nu i cto at o ction t m a t i ing a a ui d c a ng t a dmini t ation ct onic nu o ction t m gu ation o
ocum nt ot d o o a it un in o mation im m ntation a i t o communication i t o communicat ic and t at a communicat ion ic ik to t ion ic ic a
u ct o a u u ct to ta u ct to ta a ct ta ation a c a and a o mat o o id d o u mitting t m und t a n a o and u t d ci ut i i a d it om o t tim to tim t o tima it in o a o ution i to o t i t at inc a im o m nt o and idt and and idt and int n t int n t conn cti it o conn cti it ma acc ing t m
CTION TO B COMM N TION COMM NT( ) TIM IN N T N
aci itat u to and at d data acc t di ct n d d in o mation and do a a it manua u t o data
n u t at it comm ndatio o inc ud t it in and it n a n ui d to ag ca acit and not d o ou c in t n t o k and idt im m ntation n t udg t to a to conn ct and to a g i o nu om communication ic o id
a out a t o oug ot d o o inc a n going ana i o t ki im m ntation num o ga among it ta aining a t aining at d o a on i a a to o u ing conduct d and i communicat communication a continua ion nu nu u anc oc nc u anc t m o mo t aining t m in t ta nu i continu to n t i ca a i ication and conduct d t aining an to n anc t i d nding on u m nt kno dg t oug t a ai a i it int na conducting gu a o ou c t aining on o t aining ion t aining
ppen i (b) esponses ro TC
O erall Co ents (s)
udito comm ndation a acc t d
ackno dg t at t g o t o t communication cto a na d t u ic to inc a t u o t int n t i a u t d into an inc a in t u o o t to a ication and ic i t u t a ication a d to acc at t con um tion o data ic nu o t aditiona oic and m a n a t a ct d i continu to ca out gu a tudi in o d to ta i m c ani m o gu ating a ication and ic an i t i u o ta i ing t com ianc o a t com ic o id i ing and d in in it t a d n o c m nt and om ianc uid in ct d to u d t nd o c m
peci ic esponses ro Tan ania Co unications e ulatory ut ority (TC )
CTION TO B N COMM N TION COMM NT( ) TIM IN T N ta i a u n o c m nt com ianc o at d to and om ianc c m a a m nt uid in i t communication o cu nt ic o id com ianc und going t o t n c a a o a t com ic manag m nt oa d o id io to ing a n a i d inco o at in t raft nforcement and Com liance uidelines a out gu a a i on t un tudi in o d to ca i d out a oc o ca ing com u it t tud in out anot tud to m c ani m o on t ta i t
CTION TO B N COMM N TION COMM NT( ) TIM IN T N gu ating o t im act o m c ani m o to gu ating a ication and a ication a ication ta i o i nu co ction om ic t ngt n a gu a m ting un o a o ation to n u i d to co ct a co a o ating im m nt t nu om it ag d t m o t communication t oug t o ic o id ta i d o n u it u inc gu a m ting un im m nt t m i u d i d it ag d in it to cti mo andum o acc im m nt t nd tanding account to ag d t m o t t n it and a o o to aci itat t i a o cti co ction data o ta nu ant o co ction o ta nu
ppen i (c) esponses ro M TC
O erall Co ents (s)
ad ic di cti to o id d to a u gi t a to mind n titution to k a o a o t ini t on ad nc to o ici o o taining oa d and a u gi t a udg t a o a
peci ic esponses ro Ministry o or s Transport an
Co unications (M TC)
COMM N TION COMM NT( ) CTION TO B TIM IN N T N
o ndicato o i and o monito ing and - gu ating t - u dat action a uation o manc o mi ton an and indicato o a a ad ta g t and udg t monito ing t a ai a in t indicato to a o a o manc o ationa u d to in gu ating o ic monito t m m ntation o manc
t communicatio t at gic o to n cto a t oug n d to mak u i d and com it u dat d t ationa o ic o ic o cti o cti o ua t a a o a o id a indicato and t i action and m an o an and annua i ication ic udg t guid onito ing and a uation o
o manc o - ua t in gu ating mid a and
communication annua cto a o manc attac d o t to u mitt d to
COMM N TION COMM NT( ) CTION TO B TIM IN N T N
t man nt c ta i d manag m nt and comm ndati on o id d and u mitt d ack to ut a o o t d to t and
a uat
- ici nc and cti n o im m ntatio n o t ationa o ic m m ntatio n t at gic t inding i u d a an in ut in o mu ating a n ationa o ic m m ntatio n t at gic
n u t at i o t o i t ad and i comm nd d to - uid un cti n u t m on a uation o im m nt a nu co ction o to id nti t ag d t m a im m nta i ting in t a a t c nica akn in mo andum o t m i d ot ntiti nd tanding and im o d o t n it t tota o ution i and to o t matt - uid on aci itat i o o o t at to
COMM N TION COMM NT( ) CTION TO B TIM IN N T N
cti o id co ction o ta a o iat nu u o t to in nu co ction
u nt ommunicat ua t a m nt i it and id a comm nd d on gu a in and t im m ntation o d to id nti annua o c a ng a i ind ing nu co ction in com ic o id
a u uant to t ini t i o autonomou di cti o t a t a com t d a at ntit to i c ta it k t aci itat it a tak o d and un gu ation and o at a a a ta k o c i iminat con ict u idia com an o m d to u ct to o int t und t an ania i t a a ai a i it communication and com out o und o o ation it a ina to ini t a docum nt und tak a d a a a t ta k ga ding mo andum o mation o and tic o a an ociation and ind nd nt ntit o id u o t und in t gi t ation o a u idia om an u ct to n c a a o a