Lecture 11 Β· Chairmania kept its input VAT on a disowned supplier.
π»ππ πͺπππ πΉπππ: KRA labelled an event company's equipment supplier a missing trader and disallowed KSh 15.8m of input VAT. The company had invoices, ETR receipts, payment records and ledgers. The Tribunal held that KRA, not the buyer, must investigate the supplier.
Precursor
The case
Chairmania Events Ltd organises events and hires out equipment. In 2024 it sourced much of its rental stock from Terrex Traders Limited and claimed the VAT on those supplies as input tax. KRA's investigations department disallowed the whole claim and assessed KSh 15,755,537 in additional VAT. Terrex was a missing trader, it said, its invoices and ETR receipts could not be authenticated on iTax, and Chairmania's bank statements did not clearly show payments to it.
Chairmania's first objection, in August 2025, was declared invalid. It filed a valid one on 19 August. KRA confirmed the assessment on 16 October, and Chairmania appealed. It had produced tax invoices, ETR receipts, proof of payment, supplier ledgers, payment vouchers and bank statements. It also argued that KRA's decision came too late under the 60-day rule.
Continue reading
KES 49 for the rest of this piece.
About 630 more words, including the reasoning and what it means for operators. One payment, this piece, kept for good. No subscription and no renewal.
The Precursor Editorial Team
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 6 Β· A supervisor paid the casuals and got the tax bill
π»ππ πͺπππ πΉπππ: A construction firm paid its casual labourers through David Luketelo Sifuma's bank account and filed withholding tax against his PIN. KRA billed him KSh 5m. He lost on a deadline, and the Tribunal still found him a way back.
Tax and financial judgement Β· 5 min read Β· Paid
Lecture 7 Β· Semberia made KRA answer for its supplier data.
π»ππ πͺπππ πΉπππ: KRA attributed purchases to Semberia Enterprises and reconstructed its sales. The retailer challenged the transactions with invoices, bank records and reconciliations, overturning the assessment when the authority failed to substantiate its competing account.
Tax and financial judgement Β· 4 min read Β· Paid
Lecture 9Β·Bemarc's director delayed the audit. KRA went to the bank.
π»ππ πͺπππ πΉπππ: A tyre trader postponed KRA's audit for nine months: the director was busy, then away for the holidays, then at the gym. KRA stopped waiting, assessed from customs and bank data, and the High Court upheld KSh 31.5m.
Tax and financial judgement Β· 4 min read Β· Paid