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With holding tax on unit trust

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Mpenzi		#21 Posted : Saturday, September 19, 2009 11:12:00 AM
Rank: Veteran Joined: 10/17/2008 Posts: 1,234		These are very informative posts. Thanks all and particularly Mukiha and Mukimwa.
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mukiha		#22 Posted : Sunday, September 20, 2009 2:58:00 PM
Rank: Elder Joined: 6/27/2008 Posts: 4,114		@Mkimwa; When you pay two different taxes,that is NOT double taxation. Thus paying income tax on your salary [PAYE] and then paying VAT on goods does NOT amount to double taxation. Neither does paying import duty and VAT on imported goods. Duty and VAT are not INCOME taxes; this is the reason they are not declared in the tax declaration forms. However,when you get dividends from a company,that dividend comes from earnings from which income tax [in the name of corporation tax] has already been paid. Thus the gov collects income tax twice on that earning.... to avoid this,some companies pay very small proportions of their profit in dividends; then accumulate the rest and issue bonus shares. The fact that withholding tax is later deducted from the annual tax returns [Line 53 of the forms] does not eliminate the double taxation. Reason being that there is no section to capture the profit from shareholding in limited companies....only share of profit from partnerships is captured [line 25 in part F of the form 'Other income'] Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow) Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Mkimwa		#23 Posted : Monday, September 21, 2009 5:55:00 PM
Rank: Member Joined: 10/26/2008 Posts: 380		@ Mukiha.. Yes.. in the exact meaning of double taxation,different taxes don't amount in double taxation,because its not taxing the same income twice. However,if you look at it from the point of view of the taxpayer,the so called - 'usage' taxes,is paying tax out of an amount which has already been taxed. The net effect is that 'usage' taxes and 'income' taxes will be paid from the same earnings/income. KRA separates these,and even has diff dpts. I hate giving 50% of my money to the govt of Kenya,only for some individuals to eat it. For those wondering what double taxation is all about.. according to http://www.investorwords...58/double_taxation.html 'Double Taxation of the same earnings at two levels. One common example is taxation of earnings at the corporate level and then again at the shareholder dividend level. Another example is taxation of foreign investments in the country of origin and then again upon repatriation,although many countries have signed agreements to prevent this latter type of double taxation.'
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Ericks		#24 Posted : Tuesday, September 22, 2009 9:40:00 AM
Rank: Member Joined: 7/29/2008 Posts: 170		@ Mkimwa, Clearly the definition of qualifying dividends is quite vague in this ACT as is a number of other aspects.. just for curiousity sake does the ACT state the responsiblities of the withholding tax collection agent...... to what extent is she liable? Its just me whatever choice you make in life make sure that you can live with it.
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The Real Shaft		#25 Posted : Tuesday, September 22, 2009 11:50:00 AM
Rank: Veteran Joined: 11/19/2008 Posts: 839		so are we agreed that.. double taxation occurs in Kenya... ie ... at two levels especially for dividends..... as the tax authority is taxing the same income twice...... a) at the corporate level..... b) at the personal level..... further what happens to the entity sanctioned to withhold....... upon the safe receipt of the interest.... (seen as income...) the recipient of the interest is required by law to declare such income..... whereupon.... he/she/it..... remits the tax amount.... however where a manager of income ... (interest,etc...) has been declared a withholding agent..... it is a requirement to do so.... where the agent fails.... either negligently or fraudulently..... the recipient of the income is still required to declare... the agents problems with the authority..... are not deemed as exceptions to the general rule (requirement) ..... it thus means.. it is safer to deal with an agent... that obeys the law..... I'm the real Massey F.....shut your mouth I'm the real Massey Fergu...... Shut your mouth....
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Mkimwa		#26 Posted : Wednesday, September 23, 2009 12:33:00 AM
Rank: Member Joined: 10/26/2008 Posts: 380		@ Ericks have just realized the ACT is online.. perhaps you can take a look.. http://www.kra.go.ke/inc...df/Incometaxact2008.pdf If you still need help.. halla.
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se7en		#27 Posted : Wednesday, September 23, 2009 4:59:00 AM
Rank: Member Joined: 11/27/2006 Posts: 108		ok... so when does this 'law' come into play for the ones that dont remit the w/tax?? i.e. when is it standardized? anyone know? if you can not be kind,at least have the decency to be vague speak softly and carry a big stick, you will go far... Theodore Roosevelt
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Ericks		#28 Posted : Wednesday, September 23, 2009 6:24:00 AM
Rank: Member Joined: 7/29/2008 Posts: 170		@ Mkimwa Brilliant av got it now,,u'v just made another tax expert... Its just me whatever choice you make in life make sure that you can live with it.
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mukiha		#29 Posted : Tuesday, September 29, 2009 6:34:00 AM
Rank: Elder Joined: 6/27/2008 Posts: 4,114		@Alfa; LESSON NUMBER ONE Never assume anything regarding taxes! YES. There are penalties for delayed transmission of taxes...and if they find out that you collected but didn't forward to them,they can easily take you to court and the sentences are very severe...you easily find yourself with a one million bob fine for failing to transmit 5,000bob. In short,go to KRA offices and enquire that %-age penalty...should be about 10k plus 2% per month interest...the longer you delay,the more it becomes..... Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow) Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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