Lecture 21 Β· Premier Caterers sent its documents a week too late.
π»ππ πͺπππ πΉπππ: A catering company lost most of a KSh 4.4m dispute because its bank deposits ran ahead of its declared sales and its expenses lacked proof of payment. Its further documents arrived seven days after KRA's decision, and nothing in the law let KRA look at them.
Precursor
The case
KRA audited Premier Caterers and Events Limited's VAT returns for several months of 2023 and 2024 and its income tax for both years. It assessed KSh 1,287,013 in additional VAT and KSh 3,136,754 in income tax, a total of KSh 4.42m. The income tax rested on a bank analysis. Deposits had far exceeded declared turnover: KRA put the gaps at about KSh 2.7m for 2023 and KSh 4.5m for 2024.
The company objected in June 2025, claiming KSh 6.9m of expenses as wholly and exclusively incurred in earning income. It sent invoices, receipts, lease and rental agreements, petty cash vouchers, ledgers and schedules. KRA asked for a reconciliation of the deposits on 10 July and reminded the company on 15 August. None came.
Continue reading
KES 49 for the rest of this piece.
About 628 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 1 Β· I&M defeated a KSh713 million tax claim by tracing the entry.
π»ππ πͺπππ πΉπππ: The bank won by showing how a KSh1.31 billion adjustment moved between its accounts without producing income or a tax deduction. Its records were already before KRA. The dispute survived because the authority misread them.
Tax and financial judgement Β· 7 min read Β· Paid
Lecture 17 Β· iTax failed on deadline day, and the penalty fell.
π»ππ πͺπππ πΉπππ: A Nairobi design firm tried to file its VAT return on the due date and the portal kept rejecting it. It filed the next morning and was penalised KSh 28,239. The Tribunal cancelled the penalty. A system failure is reasonable cause.
Tax and financial judgement Β· 4 min read Β· Paid
Lecture 20 Β· Harley Berry filed nil while its customers reported sales.
π»ππ πͺπππ πΉπππ: A company filed nil VAT returns while its customers' withholding VAT certificates showed it was trading, and claimed input tax from suppliers who had declared far less. Asked for invoices, it asked instead for a flat 40% allowance. The Tribunal upheld KSh 317.9m.
Tax and financial judgement Β· 4 min read Β· Paid