Lecture 104 Β· A constituency fund was billed KSh 51 million in old PAYE, and the years before it was registered were struck.
π»ππ πͺπππ πΉπππ: KRA billed the Uriri development fund KSh 51 million in PAYE and withholding taxes reaching back to 2013. The tribunal held the fund had no duty to deduct before it was registered in 2018, struck the earlier years as time-barred, but upheld the rest for want of records.
Illustration: Precursor
The tax authority reconciles years of your expenditure and bills you for PAYE and withholding taxes you supposedly should have deducted, reaching back long before you were ever registered to deduct them. You believe the early years are beyond reach, and that the small allowances you paid were below the taxable threshold.
Put yourself in the administrator's chair. When were you first obliged to deduct and remit, and can the authority reach the years before?
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Precursor is published by the FinTech Association of Kenya and exercises independent editorial judgement under the Editorial Independence Charter. This article is labelled Precursor Executive Classroom, which marks commercial material. Knowledge on Tax and financial judgement.
Lecture 126 Β· A director kept meeting the taxman instead of appealing, and four years on the bill had only grown.
π»ππ πͺπππ πΉπππ: KRA confirmed a KSh 899,328 income-tax bill against Saphira, and its director spent four years in meetings and relied on his compliance certificates instead of appealing. The tribunal held meetings do not stop the thirty-day clock, a certificate is not proof of payment, and refused leave to appeal out of time; the debt had grown to KSh 1.4 million.
Tax and financial judgement Β· 4 min read Β· Paid
Lecture 125 Β· A rice importer called cleaning and repacking manufacturing, and the court said packaging is not making.
π»ππ πͺπππ πΉπππ: Mjengo claimed an investment deduction on KSh 1.5 million of machinery that cleaned and repackaged imported rice, calling it manufacturing. Through three forums the ruling held that packaging alone is not making goods, the rice remained rice, and a definition framed with 'means' is exhaustive. The deduction was refused.
Tax and financial judgement Β· 4 min read Β· Paid
Lecture 124 Β· A contractor said the money was his clients', had no agreements to show it, and the assessment stood.
π»ππ πͺπππ πΉπππ: KRA billed MU-BEI KSh 1.7 million after its eTIMS invoices far exceeded its declared sales. The company said the money was clients' funds for materials, passed on as an agent, but had no written agency agreements and no reconciliation. The tribunal held VAT fell due on the invoices and dismissed the appeal.
Tax and financial judgement Β· 4 min read Β· Paid