Taxconsult

Recruiting for a sales assistant has shown me things... how do you cancel an interview on the day of the interview, the other ones are asking how much is the pay before. Gen-z mko na mambo 😴😴🥵

By now if you’ve not understood what KRA is doing then let me help you. Through the E TIMs thingie they are basically asking those who are already compliant not to do business with the non compliant ones and if they do it then they will carry their liability!!

KRA now can tax unexplained bank deposits after the court ruled that money flowing into bank accounts is presumed to be income unless proven otherwise.

KPMG has issued a tax Alert on eTIMS: —KRA is moving from summary-based reporting to continuous, transaction-level scrutiny by algorithmically reconciling income tax returns against electronic datasets, including eTIMS, withholding tax, and customs data. —Business expenses that are NOT supported by compliant eTIMS invoices (and not specifically exempt) will be automatically disallowed, regardless of whether the costs were genuine. —KRA will cross-check declared income against its digital records; any income omitted from returns but reflected in eTIMS or withholding data may be treated as undeclared, triggering upward tax adjustments. —Taxpayers must ensure all transactions are backed by electronic invoices transmitted with the buyer’s PIN to avoid automatic rejection of expense claims. —Income declared outside eTIMS data may be treated as undeclared, triggering upward tax adjustments. —Compliance is required by all companies, partnerships, sole proprietors, professionals, and rental income earners carrying on business in Kenya. —Specific categories like employee emoluments (PAYE), interest from financial institutions, and airline ticketing are exempt from the eTIMS invoicing requirement, though clear documentation remains critical. —Businesses should prepare for operational hurdles such as timing mismatches between accounting periods and invoice issuance, as well as non-compliance from informal suppliers or small vendors. —Taxpayers are advised to conduct regular reconciliations between accounting ledgers and eTIMS data, strengthen supplier onboarding, and embed eTIMS compliance into their procurement workflows

Del Monte Kenya has been ordered to pay KSh 1.76 billion to the Kenya Revenue Authority (KRA) after the Tax Appeals Tribunal dismissed its appeal over transfer pricing. The tribunal found that the pineapple giant could not justify why it was shifting profits to offshore companies when the real value of the business is created in Kenya. The judgment emphasized that Del Monte’s Thika-based farming and processing operations generate the bulk of the value and therefore the profits must be taxed in Kenya. KRA’s 2018 audit revealed that Del Monte used a “cost-plus” pricing model that artificially reduced its Kenyan profits while favoring related foreign distributors. The tribunal also rejected Del Monte’s documentation, especially intercompany loans from its group finance arm, Del Monte Fund BV, saying they lacked real commercial substance. The court held that Multinationals cannot use paperwork to “export” profits when the actual work, risks, and value addition happen on Kenyan soil.

You KPMG people, it’s engine oil that is flowing inside your veins! It cannot be blood! How can I discuss something with you at 11PM and you’ve created a DETAILED 20-page Presentation at 7AM???? Toh!