Lecture 14 Β· Cedar Marketing's VAT case died on a deadline.
π»ππ πͺπππ πΉπππ: KRA disallowed input VAT on invoices that came without delivery notes or proof of payment. Cedar Marketing appealed almost three years after the 30-day limit, without asking for more time. The Tribunal never looked at the invoices.
Precursor
The case
Cedar Marketing and Communications Ltd worked in the construction sector. In August 2022 KRA assessed it KSh 1.3m in VAT, disallowing input tax on purchases it said did not add up. Cedar objected, attaching more than KSh 8m of purchase invoices for June 2022 alone.
KRA was not persuaded. One supplier's invoices came without delivery notes or proof that money had left Cedar's account, and many of Cedar's suppliers had not declared the matching sales in their own VAT returns. On 22 October 2022 KRA confirmed the assessment.
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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 8 Β· Joyland Steel pooled the money and not the records.
π»ππ πͺπππ πΉπππ: A scrap dealer bought in bulk with money from smaller dealers, passed through its own bank account. KRA taxed the flows as Joyland's business. With no ledger showing whose money was whose, the Tribunal upheld KSh 87m.
Tax and financial judgement Β· 4 min read Β· Paid
Lecture 12 Β· Savla would not say who his suppliers were
π»ππ πͺπππ πΉπππ: Accused of using fake invoices, a trader refused KRA's requests for his suppliers' addresses, contacts and payment records, calling them unreasonable. He won at the Tribunal and lost in the High Court and the Court of Appeal.
Tax and financial judgement Β· 4 min read Β· Paid
Lecture 13 Β· Lamnas bought from a supplier who had died in 2021
π»ππ πͺπππ πΉπππ: KRA traced the PIN on a company's purchase invoices to a trader buried two years before the first sale. The company blamed a former accountant. The Tribunal held that a dead man cannot supply goods, and upheld KSh 3.5m.
Tax and financial judgement Β· 4 min read Β· Paid