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Business Studies for Secondary Schools
These sanctions differ depending on the (b) Failure to file tax returns to the
type of licence. It should also be noted relevant authority;
that sanctions are not only applied to (c) Doing business at any place not
unregistered businesses but also the specified in the certificate of
registered ones, depending on the fault registration; and
committed. This section presents the
FOR ONLINE READING ONLY
sanctions for non-compliance by registered (d) Failure to surrender a certificate
and unregistered small businesses. of registration which has been
Sanctions for non-compliance suspended, revoked or cancelled to
the Registrar.
Activity 3.7 Imprisonment
Some Acts and regulations have stipulated
Visit a nearby business area, and talk imprisonment due to compliance failure.
to at least two business owners on For instance, failure to meet the regulatory
different issues concerning the business requirements of the Business Registration
operations. Act attracts a fine or imprisonment for a
(a) Document the non-compliant certain period.
sanctions of at least two licences Suspension (revocation or de-
they are aware of. registration) of a licence
(b) Ask them about the actions taken Some licences, such as business licences,
by regulatory bodies to ensure may be suspended, revoked, de-registered,
they comply. or cancelled if the following happens:
Fines or penalties (a) Premises have ceased to be used for
Generally, most of the Acts and the purpose for which the certificate
regulations clearly state that there will of registration was issued;
be fines or penalties if a small business (b) The business owner has become
fails to acquire the necessary licences. bankrupt or a business has gone into
For example, if a small business fails to liquidation;
comply with the Business Licence Act (c) Submission of false information
in Tanzania Mainland, it will face a fine during the application; and
depending on the offence committed. In (d) Not complying with the laws
some situations, fines or penalties are governing the business.
instituted even after business registration.
The situations that may lead to sanctions Confiscation of property
include the following: In some other instances, a small business
(a) Changing location without notification is likely to have property confiscated if
to the issuing authority; the following happens:
(a) Tax evasion;
Student’s Book Form Three 58
