mwekez@ji wrote:King G wrote:Value???? how now eish..........
Got shocked when i read that too ... investors from the 1980s should share their experience
@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]