Lecture 81 Β· The taxman turned every deposit into income, and Kamau's wedding records and screenshots unmade a KSh 40 million bill.
π»ππ πͺπππ πΉπππ: KRA taxed Francis Kamau on his gross bank deposits, campaign funds and dowry gifts alike. The tribunal held the burden is only a balance of probabilities, that KRA had disregarded his explanations and plucked figures from the air, and set the whole demand aside.
Illustration: Precursor
Money flows into your personal accounts from every corner of your life, campaign contributions, pass-through money for a brokerage, the sale of a vehicle, and gifts at your wedding. The tax authority reads every deposit as income and bills you on the lot, dismissing your explanations and the documents behind them.
Put yourself in the taxpayer's chair. When the authority turns every deposit into income, what turns a gift or a loan back out of 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