Formulation of the law = wait n see
Common Sense = Average
TaxMan=CGT on batch of 3 bob. Loss is yours

Value???? how now eish..........

According to Atul Shah, the chief executive of PKF Taxation Services Ltd, the middle class will not be affected much if the legal framework for the operationalisation of capital gains tax is designed well.

“There should be an appropriate threshold so that the middle class are not affected. This should look at the large corporates and oil transactions,” he said. According to PwC, the tax, which is imposed on real estate, marketable securities and other saleable assets is likely to have an impact on all sectors of the economy.

“However the major impact is likely to be felt in the property and financial markets if the exemption on marketable securities such as shares is not retained,” said Okello.

“The construction and property markets are currently growing at a rapid pace and hence a major contributor to economic growth.” Although the Capital gains tax was suspended in Kenya in 1985 all countries in East Africa and many countries in the world still tax wealth through capital gains tax.

“There is absolutely no justification why Kenya continues to suspend capital gains tax while tax the poor people through value added tax and other indirect taxes,” said Michael Mburugu, Tax Director at PKF Taxation Services Limited.

“CGT should not stifle home ownerships. A homeowner should be able to sell first home without CGT,” said Mburugu adding that,” There should be a threshold period of time for application of CGT and need to consult widely before re-introducing CGT.”

http://www.standardmedia.co.ke/...h-in-widening-of-tax-net

I totally agree the introduction of CGT isnt bad if you can afford to put some of your earnings into investment via marketable securities then CGT should be slapped on you to easen the tax burden on the lower cadre of citizens and also increase govt revenue collection...most of the foreign.investors who are here come from jurisdictions that have a wide array of taxes including this CGT...ETFs are taxed according to their domicile,Investment trusts are taxed according to their distributor status, etc thats why they have money to make things work like clock work...transportation system,housing,education.etc...I warmly embrace the tax only if the collections will be free from "we have to eat syndrome"

he is out of gova and therefore should not be believed. we needed more bleeding ....

Companies are not listing simply because CMA is inefficient...they havent worked well on their public awareness program to create financial deepening in the capital markets after the dismal performance of scom (where the lead manager cocked up big time) most wanjikus would never touch any stock again...

Just seen on NTV at 1 news that government puts implementation of capital gains tax on hold....seems GoK actually has advisers in touch with reality,perhaps a few roaming these blogs.Hope this leads to improvement in market numbers


http://www.businessdaily.../-/107r7tiz/-/index.html

Tax wasn't the issue,funding was.This talk of more debt isn't encouraging.Either way we still pay.

@mwekez@aji for your benefits the CGT in full for shares

[/quote]PART II - ACCRUAL AND COMPUTATION OF GAINS FROM
INVESTMENT SHARES

14. Interpretation
In this Part of this Schedule -

"adjusted cost" means -

(a) in the case of investment shares acquired before 13th June.1975, the market price at which the shares could have been purchased in a transaction between an independent willing buyer and an independent willing seller on the Nairobi Stock Exchange immediately prior to the close of business on 12th June, 1975; but if the transferor of the investment shares can prove to the satisfaction of the Commissioner that he actually paid more for the shares than that market price, the actual cost to the transferor of the shares may be substituted for that market price; and

(b) in the case of investment shares acquired on or after 13th June, 1975, the amount or value of the consideration for the acquisition of the shares;
"consideration" means consideration in money or money's worth;
"investment shares" means shares of companies, municipal or Government authorities or a body created by those authorities, that are listed and traded on the Nairobi Stock Exchange;

"transfer value" means the amount of value of the consideration for the transfer of investment shares (less any amount which would be deductible under paragraph 10 of Part I of this Schedule if the gains were being computed under that Part).

15. Computation of gains.
The gain subject to tax under this Part is the amount by which the transfer value of investment shares transferred by a person who is an individual exceeds the adjusted cost of those shares.

16. Deduction of tax.
The gain ascertained under paragraph 15 is subject to a deduction of income tax at the rate of seven and a half per cent of that gain.

16A. Set-off of tax.
Where in computing the gain accruing to a person on the transfer of investment shares, it is found that the adjusted cost of the shares exceeds the transfer value of those shares the amount of the excess is the loss realized by the person on the transfer of the investment shares.

17. Remittance of tax.
The provisions of section 39 apply to tax deducted under paragraph 16.

18. Transfer of investment shares by a stockbroker.
A stockbroker who conducts the transfer of investment shares on behalf of a transferor shall collect and remit tax to the Commissioner in accordance with section 35 (5).

19. Failure to collect and remit.
The remittance of money by a stockbroker under paragraph 18 shall be a full and final discharge to the stockbroker as against all persons from liability in respect of that money.

20. Liability for failure to remit taxes by a stockbroker.
A stockbroker who fails to collect and remit as required under paragraph 18, the amount of income tax out of the proceeds (over which he has control) accruing as a result of the transfer of investment shares is jointly and severally liable with the transferor of the shares for payment of the tax.

21. Exemption.
(1) Where the transferor of investment shares is an unincorporated association or body of individuals of a public character which has been exempted from income tax under paragraph 10 of the First Schedule no deduction of income tax shall be made under thisPart of this Schedule.

(2) Gains from a transfer of investment shares for or in connexion with a pension fund, trust scheme, or provident fund registered with the Commissioner shall not be subject to deduction of income tax under this Part of this Schedule[/quote]