Lecture 4 Β· A WhatsApp group helped beat a KSh 40m tax bill.
π»ππ πͺπππ πΉπππ: KRA taxed the money that passed through Francis Mugwi Kamau's accounts as if all of it were income. The Tax Appeals Tribunal ruled that a bank statement shows cash moving, and that KRA had to weigh his explanations for it.
A WhatsApp group helped beat a KSh 40m tax bill.
You run several things at once. You broker construction materials, collecting money from clients and paying suppliers the same day. You sell pigs to two processors. You sell two cars. You run for Parliament, and supporters send campaign money. Then you marry, and friends and family send about KSh 8m towards the wedding.
Every one of those shillings passes through your personal accounts. KRA adds them up and sends a bill for KSh 40.4m. Which of those deposits were income? And what would you need to show a tribunal to prove it?
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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