Lecture 27 Β· Paleah Stores could not explain KSh33 billion in deposits, and the bill reached KSh9.2 billion.
π»ππ πͺπππ πΉπππ: With its records in pieces, Paleah could not show which of KSh33 billion in bank deposits was not income. The tribunal held every unexplained deposit against it and confirmed a demand above KSh9.2 billion.
Illustration: Precursor
The tax authority cannot reconcile your returns, so it goes to your bank and your suppliers instead. It treats almost every deposit in your accounts as taxable income.
Put yourself in the finance director's chair. When the only full record of your business is the bank statement, who has to explain each line, and with what?
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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 22 Β· Yarde Park bought maize from farmers without receipts
π»ππ πͺπππ πΉπππ: A maize trader supplying a flour miller could not produce invoices for much of what it bought from smallholders. KRA disallowed 40% of its purchases and added VAT, for a KSh 593.5m bill. The Tribunal upheld it because the ledgers KRA asked for never arrived.
Tax and financial judgement Β· 3 min read Β· Paid