Wazua
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Capital gains tax??
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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h2s wrote:Let's assume you bought shares of company A at 3sh, then bought another batch at 5sh and lastly another batch at 8sh. So when you sell at 5sh how is the CGT going to be calculated? Formulation of the law = wait n see Common Sense = Average TaxMan=CGT on batch of 3 bob. Loss is yours  Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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Value???? how now eish.......... Thieves
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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King G wrote:Value???? how now eish.......... Got shocked when i read that too ... investors from the 1980s should share their experience
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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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
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Rank: Elder Joined: 7/22/2009 Posts: 7,859
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mukiha wrote:Kenyans are a funny lot: they are complaining that budget did not allocate enough money to various sectors and that the government is borrowing too much, but at the same time they don't want to pay more taxes.
Where do Kenyan's think the money comes from: trees? Why should I pay more taxes??? I would just be financing wastage!!! The government should stop the wastage and corruption and you will be suprised how many billions would be saved as a result! You can't give you kid a glass of milk, he pours 3/4 and drinks 1/4, then you give him another glass and he does the same and then you give him a third one just because you can afford! [Not that Kenyans can actually afford all the taxes being demanded!!!]. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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mwekez@ji wrote: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" possunt quia posse videntur
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Rank: Member Joined: 4/25/2012 Posts: 110
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Securities spared capital gains tax. Bloomberg has quoted an outgoing public servant in the Finance Ministry stating that there is no immediate plan to implement a capital gains tax on shares. Finance Ministry Permanent Secretary Joseph Kinyua said that the plan is to re-introduce the capital gains tax, which was suspended in the 1980s, in order to raise more revenue but this will target properties only. Last week’s budget statement was silent on silent on what asset classed the capital gains tax was to apply. Introducing a capital gains tax would have slowed down the ability of companies to raise capital at the bourse, potentially stagnating the development of the market which has struggled to get additional listings despite numerous incentives. (Bloomberg, Standard Investment Bank) There is nothing as dangerous as an Idea, when there is only one Idea
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Rank: Member Joined: 4/25/2012 Posts: 110
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MoneyMonger wrote:Securities spared capital gains tax. Bloomberg has quoted an outgoing public servant in the Finance Ministry stating that there is no immediate plan to implement a capital gains tax on shares. Finance Ministry Permanent Secretary Joseph Kinyua said that the plan is to re-introduce the capital gains tax, which was suspended in the 1980s, in order to raise more revenue but this will target properties only. Last week’s budget statement was silent on silent on what asset classed the capital gains tax was to apply. Introducing a capital gains tax would have slowed down the ability of companies to raise capital at the bourse, potentially stagnating the development of the market which has struggled to get additional listings despite numerous incentives. (Bloomberg, Standard Investment Bank)
LINKThere is nothing as dangerous as an Idea, when there is only one Idea
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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“The plan is to re-introduce the capital gains tax, which was suspended in the 1980s, in order to raise more revenue,” Kinyua said. “It will target the real-estate sector, which has recorded tremendous growth over the years. There are no immediate plans to levy the charge on stocks.” #Interesting http://www.bloomberg.com/news/2...ax-to-raise-revenue.htmlcc MoneyMonger - check the link
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