Lecture 50 ยท Eldoret Grains hid its sales in a salesman's account, and he handed the proof to KRA.
๐ป๐๐ ๐ช๐๐๐ ๐น๐๐๐: Eldoret Grains routed customer payments through a junior salesman's personal account, and the salesman reported it. The High Court held that a managing director's acts are the company's, and that unexplained bank records stand, reinstating KSh568 million.
Illustration: Precursor
Your company channels some of its sales through an employee's personal bank account, so the money never shows in your books and no tax is paid on it. Then the employee walks into the tax office and tells them everything.
Put yourself in the managing director's chair. When your own customer payments sit in a third party's account, who does the law hold responsible for the tax?
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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 ยท A director kept meeting the taxman instead of appealing, and four years on the bill had only grown.
๐ป๐๐ ๐ช๐๐๐ ๐น๐๐๐: 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 ยท 4 min read ยท Paid
Lecture 125 ยท A rice importer called cleaning and repacking manufacturing, and the court said packaging is not making.
๐ป๐๐ ๐ช๐๐๐ ๐น๐๐๐: 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 ยท 4 min read ยท Paid
Lecture 124 ยท A contractor said the money was his clients', had no agreements to show it, and the assessment stood.
๐ป๐๐ ๐ช๐๐๐ ๐น๐๐๐: 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 ยท 4 min read ยท Paid