Lecture 17 Β· iTax failed on deadline day, and the penalty fell.
π»ππ πͺπππ πΉπππ: A Nairobi design firm tried to file its VAT return on the due date and the portal kept rejecting it. It filed the next morning and was penalised KSh 28,239. The Tribunal cancelled the penalty. A system failure is reasonable cause.
Precursor
The case
Active Brand Works Limited, which does brand design, signage and interior fit-outs, prepared its October 2023 VAT return in advance using KRA's template. On 20 November 2023, the due date, a staff member tried repeatedly to submit it and received the same error each time, then reported the problem through KRA's website. There was no response before midnight. The company filed on the morning of 21 November, and the system imposed a penalty of KSh 28,239.
It objected with screenshots of the error and proof of its attempt to contact support. KRA confirmed the penalty. It said the company had had weeks to file and chose the last day, that it knew of no outage, that the company had not called the official call centre, and that the fault may have been the company's own internet connection.
Continue reading
KES 49 for the rest of this piece.
About 612 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 9Β·Bemarc's director delayed the audit. KRA went to the bank.
π»ππ πͺπππ πΉπππ: A tyre trader postponed KRA's audit for nine months: the director was busy, then away for the holidays, then at the gym. KRA stopped waiting, assessed from customs and bank data, and the High Court upheld KSh 31.5m.
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 15 Β· Twenty days cost Coca-Cola KSh 69.8m of input VAT.
π»ππ πͺπππ πΉπππ: Coca-Cola Beverages left January's input VAT out of its returns, then added it to an amended July return on the day July's return was due. The Tribunal held that the six-month window had closed on 31 July.
Tax and financial judgement Β· 4 min read Β· Paid