Lecture 93 Β· Che Lu struck itself off the register to escape its tax, and the court brought it back to answer for the debt.
π»ππ πͺπππ πΉπππ: Che Lu Construction dissolved itself by a Gazette notice, hoping a KSh 262 million tax debt would vanish with it. The High Court held it should have notified KRA directly as a creditor, restored the company to the register, and held the debt and the directors still answerable.
Illustration: Precursor
Your company owes years of tax, so you apply to have it struck off the register, publish the required notice in the Gazette, wait the three months, and watch the company quietly disappear. You tell yourself the debt has vanished with it, because the authority never came forward to object.
Put yourself in the director's chair. When you strike a company off to escape its tax, do the debts die with it, or come back to you?
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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