Lecture 83 Β· Jakoline answered the taxman with a haystack of files, and the High Court said a dump is not a reconciliation.
π»ππ πͺπππ πΉπππ: Jakoline met a KSh 29 million assessment by dumping thousands of raw statements and invoices on the taxman's portal. The tribunal called that enough; the High Court reversed it, holding the burden stays on the taxpayer to produce an indexed reconciliation, not a haystack.
Illustration: Precursor
Your tax returns do not match across the different taxes, and the authority asks you to explain the gap. Rather than sit down and reconcile the figures, you upload everything you have, thousands of bank statements and invoices, and trust that the sheer volume will answer the question for you.
Put yourself in the director's chair. When your returns do not add up and the authority asks you to explain, is dumping every document an answer?
Continue reading
KES 49 for the rest of this piece.
About 707 more words, including the reasoning and what it means for operators. One payment, this piece, kept for good. No subscription and no renewal.
The Precursor Editorial Team
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