Lecture 117 Β· A cereals trader never filed and binned every notice, and a KSh 11 million default assessment stood in full.
π»ππ πͺπππ πΉπππ: A Nairobi cereals trader never filed for five years and ignored every notice, so KRA traced more than KSh 25 million through his accounts and raised a KSh 11.3 million default assessment. Asked to break down his costs, he produced nothing, and the tribunal upheld the whole bill.
Illustration: Precursor
You run a busy shop, take your payments in cash and over mobile money, and your account grows month by month, but you never file a return. The reminders come and you ignore them; the demand comes and you bin it. Then the authority traces the money through your accounts, treats it all as income, and bills you a sum that could buy a house.
Put yourself in the trader's chair. When you never file and ignore every notice, can you later complain the authority used your deposits?
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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 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