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.
Precursor
The case
Bemarc Limited traded tyres in Nairobi. On 11 September 2015 KRA gave notice of an audit of 2012 to 2015, to be held at the company's premises, and asked for financial statements, bank records, VAT returns, sales ledgers and import documents.
On the appointed day nobody was ready and the audit did not happen. KRA wrote again in October asking when the director would be available. He promised to engage after the festive season. Early 2016 brought only short replies to KRA's calls, including, in the post that first told this story, that he was at the gym.
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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 4 Β· A WhatsApp group helped beat a KSh 40m tax bill.
π»ππ πͺπππ πΉπππ: KRA taxed the money that passed through Francis Mugwi Kamau's accounts as if all of it were income. The Tax Appeals Tribunal ruled that a bank statement shows cash moving, and that KRA had to weigh his explanations for it.
Tax and financial judgement Β· 5 min read Β· Paid
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