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KRA Individual Tax Compliance
Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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A relative of mine wants to run for county rep seat. He went to get a tax compliance at KRA and was slapped with a demand for 200k. He is a pensioner for almost 15 years I dont understand how this could be.
Anyone out there who can help or advise?
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Rank: Hello Joined: 10/9/2012 Posts: 8
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kollabo wrote:A relative of mine wants to run for county rep seat. He went to get a tax compliance at KRA and was slapped with a demand for 200k. He is a pensioner for almost 15 years I dont understand how this could be.
Anyone out there who can help or advise? Has he been filing retuns based on what he does?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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kollabo wrote:A relative of mine wants to run for county rep seat. He went to get a tax compliance at KRA and was slapped with a demand for 200k. He is a pensioner for almost 15 years I dont understand how this could be.
Anyone out there who can help or advise? Ask HIM; KRA must have given him a breakdown of how they arrived at that figure. Contrary to popular belief, these figures are not pulled out of a hat! Chances are that he skipped some payments when he was working and the penalties have been earning interest at 2% per MONTH! 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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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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mukiha wrote:kollabo wrote:A relative of mine wants to run for county rep seat. He went to get a tax compliance at KRA and was slapped with a demand for 200k. He is a pensioner for almost 15 years I dont understand how this could be.
Anyone out there who can help or advise? Ask HIM; KRA must have given him a breakdown of how they arrived at that figure. Contrary to popular belief, these figures are not pulled out of a hat! Chances are that he skipped some payments when he was working and the penalties have been earning interest at 2% per MONTH! He has been remitting taxes all through his working life. He was elected a councillor in the last election so he started earning a salary apart from his pension. KRA claims that he was only entitled to relief on one income. Hence they have calculated back taxes plus penalties based on the relief he received on his councillor salary. A fault that was not his own. As it is the guy cant run without tax compliance.
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Kollabo,tell him to walk and talk to some people around embassy house with 15k who will sort him out.
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Kollabo,tell him to walk and talk to some people around embassy house with 15k who will sort him out.even our mpigs have worse stuff with kra eg mututho but they are campaigning to be governorpigs.senilepigs,mpigs,countypigs etc.
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Rank: Member Joined: 11/21/2006 Posts: 608 Location: Ruiru
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mawinder wrote:Kollabo,tell him to walk and talk to some people around embassy house with 15k who will sort him out.  I can't even believe that you are advising a leader seeking elective post to be corrupt! "..I am because we are. "― Ubuntu, Umtu,
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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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Guys no underhand deals here. Would a tax consultant help? Or anyone knows someone upstairs at Times Tower who would be ready to listen.
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Rank: Elder Joined: 9/7/2010 Posts: 2,148 Location: elderville
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mawinder wrote:Kollabo,tell him to walk and talk to some people around embassy house with 15k who will sort him out.even our mpigs have worse stuff with kra eg mututho but they are campaigning to be governorpigs.senilepigs,mpigs,countypigs etc. Will these people happen to have the same name and Mpesa account as the 'chairman' of KRA? He who can express in words the ardour of his love, has but little love to express. - Petrach, Son. (That men by various ways arrive at the same end. - Montaigne, The Essays of.)
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Rank: Elder Joined: 7/20/2007 Posts: 4,432
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Elder wrote:mawinder wrote:Kollabo,tell him to walk and talk to some people around embassy house with 15k who will sort him out.even our mpigs have worse stuff with kra eg mututho but they are campaigning to be governorpigs.senilepigs,mpigs,countypigs etc. Will these people happen to have the same name and Mpesa account as the 'chairman' of KRA?  This guy is the resident briber in wazua. Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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I havent told him to go to kra and bribe anyone.i have simply referred him to tax consultants who understand taxation matters and know the bureaucratic red tape that is kra.
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Rank: Elder Joined: 10/23/2008 Posts: 3,966
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mawinder wrote:I havent told him to go to kra and bribe anyone.i have simply referred him to tax consultants who understand taxation matters and know the bureaucratic red tape that is kra. That's what you should have said. You know we live in an ambiguous world, right? Luck is when Preparation meets Opportunity. ~ Lucius Annaeus Seneca
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Rank: Member Joined: 6/10/2006 Posts: 201 Location: Nairobi
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Jus Blazin wrote:mawinder wrote:I havent told him to go to kra and bribe anyone.i have simply referred him to tax consultants who understand taxation matters and know the bureaucratic red tape that is kra. That's what you should have said. You know we live in an ambiguous world, right?  
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Rank: Member Joined: 11/21/2006 Posts: 608 Location: Ruiru
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mawinder wrote:I havent told him to go to kra and bribe anyone.i have simply referred him to tax consultants who understand taxation matters and know the bureaucratic red tape that is kra. Good for clarification... otherwise when told him to "talk to some people around embassy house" it implied "people who know people" usually brokers with extensive bribery network "..I am because we are. "― Ubuntu, Umtu,
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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kollabo wrote:mukiha wrote:kollabo wrote:A relative of mine wants to run for county rep seat. He went to get a tax compliance at KRA and was slapped with a demand for 200k. He is a pensioner for almost 15 years I dont understand how this could be.
Anyone out there who can help or advise? Ask HIM; KRA must have given him a breakdown of how they arrived at that figure. Contrary to popular belief, these figures are not pulled out of a hat! Chances are that he skipped some payments when he was working and the penalties have been earning interest at 2% per MONTH! He has been remitting taxes all through his working life. He was elected a councillor in the last election so he started earning a salary apart from his pension. KRA claims that he was only entitled to relief on one income. Hence they have calculated back taxes plus penalties based on the relief he received on his councillor salary. A fault that was not his own. As it is the guy cant run without tax compliance. Kenya's taxation is based on SELF ASSESSMENT. If you make a mistake in you self-assessment and KRA discovers it 20 years later, you must pay it all inclusive of the penalties! Sounds unfair, but that's how it is. On the issue of taking double relief, the error would have come out clearly if he had filled out tax returns in each year and DECLARED ALL his sources of income. This is because the tax return form captures the TOTAL INCOME; then evaluates the TOTAL TAX due; then deducts the SINGLE RELIEF allowed. That way, if he had been erroneously allowed relief by two different employers, the error would have showed up automatically on the tax return form. Nevertheless, I think the best course of action is to enter into a repayment agreement with KRA and then request a compliance certificate on the basis that he is complying with the repayment plan. But if he chooses to dispute the tax demand, he will be in for a long haul---which will end long after the elections! 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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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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@mukiha a councillor in western earns nothing more than 30k a month. Based on the relief applied over a 4 year period plus 2% interest I still think the 200k figure is too excessive.
But thanks for the insight. I will advise him to explore this angle.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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kollabo wrote:@mukiha a councillor in western earns nothing more than 30k a month. Based on the relief applied over a 4 year period plus 2% interest I still think the 200k figure is too excessive.
But thanks for the insight. I will advise him to explore this angle. Personal relief is Sh13,944 in any one tax year. If the extra was paid 15 years ago, the tax on it was about 25% = Sh3,486. Add 20% penalty and it comes to sh4,183 Now accumulate compound interest at the rate of 2% per month for 15 years - 180 months - and the amount due comes to sh147,754. As you can see, the 200k demand doesn't seem far-fetched.... 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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Rank: Hello Joined: 10/22/2012 Posts: 1
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There is a statutory limit on when the KRA can collect. If within the statutes of fraud, then there is not statutory limit. Get a calculated break-down on how they arrived at Ksh.200,000. Look through the KRA regulations on collection, have a tax attorney/accountant recompute the amount based on the regulations. Some of these assessments are derived without consideration of what the regulations prescribe. DO NOT BRIBE ANYONE, otherwise you will lose more than the KSH. 200,000
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Mustang wrote:There is a statutory limit on when the KRA can collect. If within the statutes of fraud, then there is not statutory limit. Get a calculated break-down on how they arrived at Ksh.200,000. Look through the KRA regulations on collection, have a tax attorney/accountant recompute the amount based on the regulations. Some of these assessments are derived without consideration of what the regulations prescribe. DO NOT BRIBE ANYONE, otherwise you will lose more than the KSH. 200,000 How long is it? How many years? 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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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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@Mustang, there is no statutory limit. They will slap you with some hefty demands back dated to eon then it is up to you to prove them right - by providing proper documentation while sweating. Even they can come for tax arrears from your estate cheif! Thieves
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