Lecture 4 Β· A WhatsApp group helped beat a KSh 40m tax bill.
π»ππ πͺπππ πΉπππ: KRA taxed the money that passed through Francis Mugwi Kamau's accounts as if all of it were income. The Tax Appeals Tribunal ruled that a bank statement shows cash moving, and that KRA had to weigh his explanations for it.
A WhatsApp group helped beat a KSh 40m tax bill.
You run several things at once. You broker construction materials, collecting money from clients and paying suppliers the same day. You sell pigs to two processors. You sell two cars. You run for Parliament, and supporters send campaign money. Then you marry, and friends and family send about KSh 8m towards the wedding.
Every one of those shillings passes through your personal accounts. KRA adds them up and sends a bill for KSh 40.4m. Which of those deposits were income? And what would you need to show a tribunal to prove it?
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Lecture 22 Β· Yarde Park bought maize from farmers without receipts
π»ππ πͺπππ πΉπππ: A maize trader supplying a flour miller could not produce invoices for much of what it bought from smallholders. KRA disallowed 40% of its purchases and added VAT, for a KSh 593.5m bill. The Tribunal upheld it because the ledgers KRA asked for never arrived.
Tax and financial judgement Β· 3 min read Β· Paid
Lecture 21 Β· Premier Caterers sent its documents a week too late.
π»ππ πͺπππ πΉπππ: A catering company lost most of a KSh 4.4m dispute because its bank deposits ran ahead of its declared sales and its expenses lacked proof of payment. Its further documents arrived seven days after KRA's decision, and nothing in the law let KRA look at them.
Tax and financial judgement Β· 4 min read Β· Paid
Lecture 20 Β· Harley Berry filed nil while its customers reported sales.
π»ππ πͺπππ πΉπππ: A company filed nil VAT returns while its customers' withholding VAT certificates showed it was trading, and claimed input tax from suppliers who had declared far less. Asked for invoices, it asked instead for a flat 40% allowance. The Tribunal upheld KSh 317.9m.
Tax and financial judgement Β· 4 min read Β· Paid