Lecture 84 Β· A fire and a vanished accountant took Rynus Kinja's records, and an unproven agency left a KSh 26 million bill standing.
π»ππ πͺπππ πΉπππ: Rynus Kinja said he was only an agent passing money to informal traders, but a fire and a missing accountant had taken his records. The tribunal held an agency must be proved with documents, a fire corroborated with independent evidence, and dismissed the appeal.
Illustration: Precursor
Your business runs on trust. You collect goods from informal traders who issue no receipts, take money from one principal client, and pass it on to the traders by cash and mobile money, keeping a small margin. Then a fire destroys your office and your accountant disappears with the rest of the records, and the tax authority raises a large assessment.
Put yourself in the trader's chair. When a fire and a vanished accountant take your records, does the assessment simply stand?
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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