Lecture 43 Β· Docol ran its Somalia contracts through a Kenyan account, kept no records, and owed KSh1.1 billion.
π»ππ πͺπππ πΉπππ: Docol said its Kenyan account was only a conduit for Somali projects, so none of the income was Kenyan. With no records produced and its returns filed as Kenyan income, the tribunal upheld an estimate built on comparable margins and a country risk premium, confirming KSh1.1 billion.
Illustration: Precursor
A Kenyan company wins United Nations work in a neighbouring country, and the UN insists the money pass through a Kenyan bank account for safety. Funds arrive, sit briefly, and go out to foreign workers and suppliers. The company treats its Kenyan role as pure treasury and declares almost nothing.
Put yourself in the finance director's chair. When the money runs through Kenya but the work is abroad, what decides where the income is taxed, and what happens if you cannot prove any of it?
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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