Lecture 91 Β· The taxman took nearly two years to answer Eastleigh Mall's objection, and the court held the clock had already decided it.
π»ππ πͺπππ πΉπππ: Eastleigh Mall filed a valid objection to a KSh 387 million assessment and waited nearly two years for a reply. The High Court held that the law's sixty-day deadline is a command, that the objection was deemed allowed on day sixty, and that the late decision was worthless.
Illustration: Precursor
You file a complete, valid objection to a large assessment, and the law gives the authority sixty days to decide it. Sixty days pass, then ninety, then hundreds, with no reply. Nearly two years later the authority finally answers, reducing the bill but not cancelling it, as though the deadline had never mattered.
Put yourself in the manager's chair. When the authority misses the sixty-day deadline to decide, is your objection allowed by the clock alone?
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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