Lecture 115 Β· The taxman taxed a manager's deposits and her rent as well, and the tribunal called it the same money twice.
π»ππ πͺπππ πΉπππ: KRA summed every credit in a manager's three accounts and taxed her rent on top, a KSh 12.7 million bill. The tribunal held the same money could not be taxed twice and set the deposit assessment aside, though a late amnesty payment cost her the rental years.
Illustration: Precursor
You hold a salaried job and run a rental business and a small farm on the side, moving money between your own accounts and lending the odd sum to a friend. The authority adds up every credit across your accounts and treats the lot as income, and then taxes your rent on top, though that rent already sits inside the very deposits it has counted.
Put yourself in the manager's chair. When the authority taxes your deposits and your rent as well, is it taxing the same money twice?
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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