Lecture 87 Β· Eldoret Grains banked its sales in a salesman's account, and the court taxed the company all the same.
π»ππ πͺπππ πΉπππ: Eldoret Grains ran its sales through a salesman's personal accounts to keep them off its books, until he told the taxman. The company said the money was his, not theirs, but the High Court held the income was the company's and reinstated the KSh 568 million bill.
Illustration: Precursor
You keep your sales off the company's books by having customers pay into an employee's personal bank account, and you tell yourself the money is not yours because it never touched the company's ledgers. Then the employee walks into the tax authority and tells them everything.
Put yourself in the director's chair. When your sales are banked in an employee's name, whose income is it when the authority finds them?
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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