Lecture 26 Β· Keroche lost KSh9.1 billion when a classification it had used for years was reopened.
π»ππ πͺπππ πΉπππ: Keroche believed a decade of accepted filings fixed how its drinks were taxed. The tribunal held that the product's composition and its undeclared processes decided the rate, not past practice, and confirmed a bill of KSh9,116,835,985.
Illustration: Precursor
A tax authority has accepted your excise returns for years without objection. Then it reclassifies your product into a higher-duty code and backdates the change by four years.
Put yourself in the managing director's chair. Before you argue that years of acceptance protect you, what fixes the rate your product actually carries?
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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 3 Β· How A CEOβs personal account became a KSh 163.9m tax bill.
π»ππ πͺπππ πΉπππ: Mary Wanjiru Kinyua said KSh 413m in deposits were company sales and loans. Without the paperwork, the courts treated the money as hers, and the one point she won was worth a rounding error.
Tax and financial judgement Β· 6 min read
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