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Tax Question...
Rank: Chief Joined: 5/9/2007 Posts: 13,095
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With the Taxes coming up everyday, dont be surprised if one county govt starts taxing grandmothers on all the money they are given by their children. Didn't I hear even harambees will soon be taxed? In a harambee situation, has one "earned" that money in the strict sense?
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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jguru wrote:he he he
Interesting that Accountants and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!
No wonder big companies like Nakumatt do not pay tax... 
Its difficult dealing with tax consultants and auditors who dont have any accounting experience.Most of them graduated from campus or college and headed direct to be either tax consultants or auditors.
Auditors are the worst coz they only have the theoritical knowledge.
I think we should have a requirement that before you specialize in any accounting speciality you should have practically accounting experience first
If Obiero did it, Who Am I?
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Rank: Elder Joined: 12/17/2009 Posts: 3,583 Location: Kenya
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jguru wrote:he he he
Interesting that Accountants, Auditors and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!
No wonder big companies like Nakumatt do not pay tax...
, considering this is a straight forward case with very well defined income streams - what happens to the typical kenyan mwanabiashara;
one who owns some rental mikokotenis, an old truck that he probably services himself, a few mpesa joints, a mitumba stall, offers mujengo consultancy services, has an escort agency, mc's at local functions, is a ghost kanjo employee ...
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Kusadikika wrote:A woman has a garden on which she grows mboga and rears cows. From the milk and mboga proceeds she nets about Ksh. 10,000 per month. She also has some rental houses that bring in another Ksh. 15,000. She has 5 grown children who each give her Ksh. 5,000 every month. All for a total of Ksh. 50,000 per month.
Question:
According to KRA (For taxation purposes) what is her income? Are all monies received considered income?
Naomba kufunzwa.
Farming and Rental will be taxed. Tax on the two streams is computed separately (separate sourced) and she will not be allowed to offset losses from one to another. If her tax liability is KShs 40k or more in the year she will be required to pay tax quarterly. If less, she can pay by 20th April the next year. Life is short. Live passionately.
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Rank: Member Joined: 1/13/2014 Posts: 398 Location: Denmark
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Rank: Elder Joined: 7/22/2008 Posts: 2,723
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Nashukuru sana. So according to many of you except Gathige, KRA has no clause on gift giving? No limits?
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Rank: Veteran Joined: 1/3/2014 Posts: 1,063
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Kusadikika wrote:Nashukuru sana. So according to many of you except Gathige, KRA has no clause on gift giving? No limits?
According to the income tax Act,non cash benefits will be taxed if the income is more than shs 36000 p.a.
The question is at what circumstance was the gift issued?If it was not in the course of business or employment such as dowry,then it is not taxable.
The court also stopped KRA from taxing windfall gains.
For the above query the income taxable is business and farming income at the graduated scale rates.
Consistency is better than intensity
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Rank: Elder Joined: 12/6/2008 Posts: 3,585
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PeterReborn wrote:
For the above query the income taxable is business and farming income at the graduated scale rates.
Kindly, Calculated together(Combined Gross Income from both) or Seperately,( A separate graduated scale for farming and another for rental), If the former what is the lowest rate (we have been advised the highest is 20%)? Ras Kienyeji Man
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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jguru wrote:he he he
Interesting that Accountants, Auditors and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!
No wonder big companies like Nakumatt do not pay tax...
why the assumption that the respondents fall under those jobs?
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Rank: Elder Joined: 5/1/2010 Posts: 3,024 Location: Hapa
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jguru wrote:he he he
Interesting that Accountants, Auditors and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!
No wonder big companies like Nakumatt do not pay tax...
i hope this is not mirrored kwa njiraini Float like a butterfly, sting like a bee. - Muhammad Ali🐝
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