THE INCOME TAX (CHARITABLE ORGANIZATIONS AND DONATIONS EXEMPTION) RULES, 2024
Recently, the Kenya Revenue Authority (KRA) informed the public of the implementation of the new Income Tax (Charitable Organizations and Donations Exemption) Rules, 2024, which officially took effect on 18th June 2024. What Does This Mean? Ordinarily, any income earned in Kenya by an organization is subject to taxation under the Income Tax Act, Cap […]
Can the Kenya Revenue Authority (KRA) issue Tax Assessment based on Bank Records ?
Can KRA Issue Tax Assessments Based on a Taxpayer’s Bank Records? This article briefly explores whether the Kenya Revenue Authority (KRA) can issue tax assessments based solely on bank statements and discusses the burden of proof in such cases. In the recent case of Avery Lounge Limited vs. Commissioner of Domestic Taxes (Tax Appeal No. […]
FERTILIZER VAT CHALLENGES : RECLASSIFICATION OF HS CODES
FERTILIZER IMPORT CHALLENGES : TARIFF CLASSIFICATION DISPUTES AND VAT EXEMPTIONS Introduction Fertilizers have been a common subject of classification challenges during importation. All products entering the country are categorized and classified under various Chapter Notes of the EAC/CET (East Africa Community Common External Tariff). This classification determines whether a product attracts VAT or is VAT […]
Finance Bill, 2024: Analysis of Proposed amendments to the Income Tax Act
THE HITS & MISSES IN THE FINANCE BILL, 2024 (Analysis of the proposed amendments to the Income Tax Act) Definitions and interpretation Section 2 of the Income Tax Act This section is known as the interpretation section, since it contains definitions of key words used in the Income tax act. The proposed amendments by way […]
Guide to lodge a valid appeal before the Tax Appeals Tribunal
In our prior publication, we extensively delved into the intricate art of lodging a valid objection against a hefty tax assessment levied by the Commissioner. Now, picture this: you’ve lodged your objection, and the Commissioner has finally issued you with an objection decision- unfortunately, not in your favour. How do you proceed? Another episode of […]
Why The Proposed Minimum Tax Offends All The Principles Of Modern Taxation
The Finance Act, of 2020 introduced Section 12D under the Income Tax Act requiring businesses to pay a minimum tax at the rate of 1% of the gross turnover. This amendment was declared unconstitutional by both the High Court and the Court of Appeal. In summary, here are our views on why the proposed minimum […]
Taxation Of Non-Cash Employment Benefits
Generally, employers are known to incentivize their employees by either giving out cash or non-cash benefits. A non-cash benefit may range from employees purchasing shares at a discounted price through an Employee Share Ownership Plan (ESOP); A rent-free house, a vehicle for private use or an Employer (being an educational facility) allowing its teaching staff […]
Termination Of Employees On Probationary Contract Under The Employment Act, 2007
The High Court recently handed down a judgment in Petition No. 94 of 2016 – Monica Munira Kibuchi v Mount Kenya University declaring section 42 (1) of the Employment Act, 2007 unconstitutional. The above section applies to termination of employees under probationary contracts. In reaching this decision, the Court juxtaposed the statutory provisions of section […]
Will the Global Minimum Tax be a good or bad thing for Africa?.
The G7 leaders are proposing the adoption of a global minimum tax rate of 15%. This can be viewed as a “global race” to combat tax avoidance and obliteration of tax havens, with the essence to prevent multinationals from shifting profits to jurisdictions with lower tax rates. This is a thing that has been fondly […]
Holding virtual meetings during pandemic
It is said that necessity breeds invention. This statement could not be any truer given what corporations have experienced at the hands of company law in the recent past. Company law—which has been considered a stricter procedural regulation on the processes of convening annual general meetings, declaration of dividends, board attendance, and annual and quarterly […]
