Lecture 67 Β· The taxman charged a sole trader corporation tax, and his missing records cost him the point he was right about.
π»ππ πͺπππ πΉπππ: KRA assessed Stanley Mwaniki KSh 206 million in corporation tax, a tax that does not apply to an individual. The courts agreed on the principle but held that his empty objection and absent records meant the burden never shifted, and the assessment stood.
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The tax authority bills you under the wrong head of tax, a charge the law reserves for companies, and you are not a company. You are plainly right on the point. Yet you kept no records, and your objection said little more than that you disagreed.
Put yourself in the taxpayer's chair. When the authority is wrong in law but you cannot prove your figures, which failing decides the case?
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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