Is IDRAS the Solution We Were Hoping For?

On 14 November 2025, we published an article titled Improving Tax Transparency in Tanzania: Why Taxpayers’ Access to Information Must Be a Priority. Our central argument was simple but firm: genuine tax transparency is not achieved merely through digitisation. It exists only when taxpayers have clear, timely, and complete access to their own tax information — so they can understand their obligations, payments, penalties, interest, and adjustments without uncertainty.

Drawing from classical tax principles and international benchmarks such as TADAT, we observed that despite progress in online filing and payment systems, the absence of a consolidated tax position forced taxpayers to rely on letters, follow-ups, or physical visits to tax offices. The consequences were confusion, disputes, mistrust, and unnecessary friction between taxpayers and the tax authority.

What we proposed

We argued that closing this transparency gap required practical, system-level reforms. These included publishing a taxpayer’s full tax position within their online portal, integrating official correspondence into the digital platform, and digitising key processes such as examinations, audits, and objections.

We also proposed a phased approach — first cleaning up legacy liabilities, then publishing tax positions with room for correction, and ultimately moving toward real-time accuracy. Our conclusion was straightforward but critical: access to information is foundational to trust, voluntary compliance, and effective tax administration.

Reforms already in progress

What we did not fully appreciate at the time was how far this thinking had already progressed within the Tanzania Revenue Authority’s system development process. Many of the ideas we discussed had already been embedded into the design of the Integrated Domestic Revenue Administration System (IDRAS), which was nearing completion as our article went public.

Today, IDRAS is officially in operation, and the previous taxpayer portal has been retired. Credit is due to TRA for the extensive training conducted for taxpayers and key stakeholders ahead of the rollout. Having reviewed the system at a high level, it is evident that IDRAS represents a meaningful step toward the transparency vision we previously articulated. The system appears genuinely integrated and signals a promising shift in direction.

In this article, we focus on two areas that directly relate to the issues raised earlier — areas that matter most to taxpayers in practice.

The tax position: the core concern

The tax position — our central concern — has now been introduced within IDRAS and appears on the 'My IDRAS' landing page under the 'Debts' option. At present, the table is empty, and it remains unclear whether the tax position will be automatically generated from other modules such as assessments, payments, and remissions, or whether it will be manually updated by tax officers.

The wording “list of tax positions” also raises an important conceptual concern. It suggests the possibility of multiple tax positions being issued over time, rather than a single, continuously updated tax position tied to a specific Taxpayer Identification Number (TIN). Our original proposition was that the tax position should function as a consolidated, system-generated statement — automatically updating as transactions occur across the system and reflecting one shared version of the truth for both the taxpayer and TRA.

A reliable tax position must be stable, traceable, and evidence-based. Any change should be clearly justified by facts, system records, and documented actions. If implemented in this manner, additional details — such as transaction posting dates, assessment timestamps, and the responsible officer — would significantly enhance both transparency and usability.

Conceptually, the tax position would be most effective if it were updated automatically whenever other modules are updated and if it were treated with the highest level of care, given its role as the most relied-upon source of truth for both parties. Its current placement also makes it relatively difficult to locate compared to its importance. I think positioning it under Debt Management or Revenue Collection may be more intuitive and consistent with its purpose.

Beyond reporting, a robust tax position could also play a critical role in data clean-up. If IDRAS is to move forward on a clean and reliable foundation — rather than carry forward legacy inconsistencies — this module could help eliminate unsubstantiated or time-barred tax liabilities and allow both taxpayers and TRA to start afresh within the new integrated system.

Communication: a quiet but powerful shift

The second major improvement worth highlighting is the communication framework. IDRAS now enables correspondence between taxpayers and TRA to be conducted digitally within the platform. This shift alone has the potential to reduce physical visits, improve response times, and free taxpayers to focus on productive economic activities rather than administrative follow-ups.

The digitisation of the objection process, in particular, represents a significant value addition. If this approach is consistently extended across all tax processes, it would mark a meaningful leap forward in the digital transformation of tax administration — not just in form, but in substance.

This also presents an opportune moment to introduce clearly defined service-level agreements (SLAs), particularly for TRA responses. While taxpayers are already required to act within specified timelines, system-generated timestamps combined with SLAs could similarly require TRA to respond to taxpayer submissions and queries within clear and transparent timeframes — strengthening accountability on both sides.

 

More under the hood of IDRAS — and what lies ahead

IDRAS introduces many other improvements and integrations, including inventory management, refund processing, taxpayer-driven information updates, e-tax invoices, and access to private and class rulings. For now, we have deliberately focused on the two areas we believe will have the greatest immediate impact on taxpayers’ experience and trust in the system.

Overall, IDRAS feels like a strong beginning rather than a finished product. As with any newly launched system, further technical enhancements and reconciliations are inevitable. What we have seen so far, however, provides a positive signal — and renewed confidence — that IDRAS can evolve into the transparent, efficient tax administration system Tanzania has long needed.

Our hope is that continued implementation and refinement will strengthen — rather than dilute — this promising start.