Lecture 92 Β· Haque & Sons told the tribunal it had the documents, and losing came down to never producing them.
π»ππ πͺπππ πΉπππ: KRA raised a best-judgment assessment of KSh 326 million on Haque & Sons for vehicle costs it could not support. The company insisted the documents existed and its accountant held them, but it produced none, and the tribunal held that saying so is not proof.
Illustration: Precursor
The tax authority disallows your costs because you have not supported them, and estimates your tax to the best of its judgment. You are sure the documents exist, your accountant has them somewhere, and you tell the tribunal so. But when the tribunal asks to see them, you have nothing in your hands.
Put yourself in the director's chair. When the authority estimates your tax and you say you have the proof, is saying so enough, or must you produce it?
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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