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 […]

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 […]

Perils of giving false information to your shareholders investors

In an interesting securities litigation case, Tesco Plc, a British multinational company, had allegedly published false information that wooed several investors to make investment decisions concerning its shares. Upon discovery, the investors sued Tesco Plc to claim and recover losses suffered as a result of the false information. That begs the question, to what extend […]

Investor activism crucial to keeping executives on toes

Nothing is quite as infamous as shareholder activism. For corporations, just like in governments, CEOs, directors and other executives get hot under the collar whenever there is unrest within the company’s shareholding structure. This is especially where the activism is geared towards board placements or combing outdoor corporate governance practices that have been traditionally held […]

Court ruling key to future commercial deals and disputes

The Supreme Court of Kenya delivered a monumental decision on the right of appeal against the decision of the High Court under Section 35 of the Arbitration Act. For the longest time, it was held that a decision by the High Court on an arbitral award was final thus no party could appeal to the […]