Policy Note · The 60-day objection clock
When the Commissioner lets a valid objection sit for 60 days, the law may decide it for you.
Illustration: Precursor
The Tax Procedures Act gives the Commissioner 60 days to decide a valid objection, and where that time passes without a decision the objection is deemed to be allowed. The word the statute uses is a command, and the deeming happens automatically on the 61st day without any further step by the taxpayer, so a decision issued after the deadline is a nullity.
The protection has two conditions. The clock runs only from an objection the Commissioner actually received, and only where the taxpayer itself objected in time. A taxpayer who cannot prove the authority received the objection has nothing for the rule to act on, and the deadline it is relying on never began to run.
Continue reading
KES 49 for the rest of this piece.
About 102 more words, including the reasoning and what it means for operators. One payment, this piece, kept for good. No subscription and no renewal.
The Precursor Editorial Team
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 · A director kept meeting the taxman instead of appealing, and four years on the bill had only grown.
𝑻𝒉𝒆 𝑪𝒂𝒔𝒆 𝑹𝒐𝒐𝒎: 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 · 4 min read · Paid
Lecture 125 · A rice importer called cleaning and repacking manufacturing, and the court said packaging is not making.
𝑻𝒉𝒆 𝑪𝒂𝒔𝒆 𝑹𝒐𝒐𝒎: 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 · 4 min read · Paid
Lecture 124 · A contractor said the money was his clients', had no agreements to show it, and the assessment stood.
𝑻𝒉𝒆 𝑪𝒂𝒔𝒆 𝑹𝒐𝒐𝒎: 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 · 4 min read · Paid