selah, ain't nothing wrong with 'avin' two set o books. It's basic finance. Think of financial ratios and their impact on decisions. I keep 3 books. Two for others and one (the real one) for myself.

If this consultancy firm of urs is cheating I think it's very EASY for either of the two Bank or the KRA to know. Banks are not stupid.they will want to know the tax that the firm is paying. Tax is not paid by trial and error it has a basis of calculation which I believe the Bank Finacial Analysts know how. Unless the 2 sets are prepared for two different reasons I don't see the possibility of any "SUCCESSFUL" firm cheating so easily. if it was this easy to cheat I dont think the KRA will be feared this much.

@selah, am surprised you are surprised abt the fine art of window-dressing/ cooking books! Because it is mostly in tax evasion (as opposed to tax avoidance which is legal) that man's sheer creative financial genius comes to light. An ordinary-looking Joe can give you such doctored statements mpaka ushangae. I worked as a credit analyst for a busy bank and looked at hundreds of balance sheets from smes to big organisations and from there I could see kenya need never have a budget deficit if all loopholes were sealed as we could collect enough to meet the country's needs. Some business men have 4 sets of financials, for: - KRA (iko na fiction mingi) - Bank (fiction) - wife (fiction) - Himself (the true reflection of the business) But banks have ways of quickly telling the fakes, as they combine the a/c statements and site visits to the customer's premises and also get references.